EFSF issues 5-year €3 billion bond

 Luxembourg – The European Financial Stability Facility (EFSF) today issued a new €3 billion 5-year benchmark bond with a coupon of 0.1 percent, maturing on Jan 19, 2021. This is the first deal of the year by the EFSF or the ESM. The EFSF’s total funding needs for this year are €14 billion.

“With books approaching €4 billion, this is a solid first step towards filling the funding needs for the EFSF for 2016. The issue comes after a spate of successful deals for the ESM, and offers a maturity that has not been available much so far in the first quarter,” said Christophe Frankel, CFO and Deputy CEO of the EFSF.

The spread at issuance was fixed at mid-swaps minus 14 basis points. This implies a reoffer yield of 0.118 percent. BNP Paribas, Credit Agricole CIB and UniCredit Bank acted as joint lead managers for the issue. The total book size was €3.87 billion.