EFSF issues €4 billion 30-year bond

Luxembourg – The European Financial Stability Facility (EFSF) placed today a €4 billion 30-year bond maturing on 29 July 2044. The issuance spread was fixed at mid swap plus 31 basis points. This implies a reoffer yield for investors of 2.392%. The coupon rate is 2.35%.

Commerzbank, Goldman Sachs International, and Royal Bank of Scotland acted as lead managers. The issue attracted very strong demand, with above €6.1 billion in orders received from investors worldwide. It is the first 30-year bond ever issued by the EFSF. Following this transaction, the EFSF will have completed its third quarter funding plan.

Christophe Frankel, CFO and Deputy CEO said:

“This is the first ever 30-year bond issued by the EFSF. It is being placed with historically low yields and, at €4bn, it is also an exceptional size for a supranational issuer. With this transaction, the EFSF will have achieved its funding requirements for the third quarter. We are very pleased both by the strong demand and by the presence of some new investors for the first time.”