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EFSF holds 6-month bill auction

Frankfurt am Main – European Financial Stability Facility (EFSF) today held a 6-month bill auction. The auction was met with very strong demand attracting over €4.6 billion in bids of which over €1.176 billion were non-competitive. The bid/cover ratio was 3.1.

EFSF sold €1.501 billion in 6-month bills at an average price of 99.86550% with a maturity date of 19 July 2012 (182 interest days). The weighted average yield was 0.2664 %. Settlement date is Thursday 19 January (T+2).

EFSF statement following Standard & Poor’s decision to downgrade its long-term rating

Luxembourg – EFSF takes note of the decision by Standard and Poor's to downgrade the EFSF's long-term rating to AA+.

At the same time, Standard and Poor's also affirms that the EFSF's short term rating remains unchanged at the highest possible level of A-1+.

EFSF continues to be assigned the best possible long-term and short-term credit rating by Moody’s (Aaa) and Fitch (AAA) underlining the solidity of EFSF. Neither rating agency has indicated any rating action for EFSF in the immediate future.

EFSF places €3 billion benchmark bond in support of Ireland and Portugal

Frankfurt am Main - European Financial Stability Facility today placed a €3 billion 3-year benchmark bond maturing on 4 February 2015. The proceeds will be used in conjunction with the financial assistance programmes for Republic of Ireland and Republic of Portugal. The issuance spread at reoffer was fixed at mid swap plus 40 basis points. This implies a reoffer yield for investors of 1.770 %.

This first 3-year bond placed by the EFSF was met with strong demand with orders received close to €4.5 billion from investors around the world.

EFSF mandates Credit Suisse, Deutsche Bank and Société Générale CIB as joint lead managers for its next issue

Luxembourg - The European Financial Stability Facility (EFSF) announces the appointment of Credit Suisse, Deutsche Bank and Société Générale Corporate & Investment Banking as joint lead managers for its next issue. The banks have been chosen from the 47 banks that comprise the EFSF Market Group. The scheduled €3 billion 3-year benchmark bond is due to be launched shortly, subject to market conditions. The proceeds will be used in conjunction with the financial assistance programmes for Republic of Ireland and Republic of Portugal.

EFSF holds first bill auction

Frankfurt am Main – As part of its short-term funding programme, European Financial Stability Facility today held its first bill auction. The auction was met with very strong demand attracting over €6.2 billion in bids of which over €2 billion were non-competitive. The bid/cover ratio was 3.2.

EFSF sold €1.971 billion in 3-month bills. The average price for the EFSF 3-month bills was 99.94386% with a maturity date of 15 March 2012 (91 interest days). The weighted average yield was 0.2222%. Settlement is 15 December 2011 (T+2).

EFSF launches short-term funding programme

Luxembourg – In order to increase flexibility in its funding strategy, EFSF announces the launch of a short-term funding programme focusing on 3, 6 and 12 month bills. Other bill tenors may be developed in time. The first auction is expected to take place before year end.

Klaus Regling, CEO of EFSF stated “The launch of a short-term funding programme is in line with the enlarged scope of activity of EFSF to use its new instruments efficiently.” He also underlined: “The bill programme will not substitute the long-term bond programme, but it will add flexibility to it.”

Maximising EFSF's capacity approved

Brussels/Luxembourg – Euro area Finance Ministers agreed on 29 November on the terms and conditions to extend EFSF’s capacity by introducing sovereign bond partial risk participation and a Co-Investment approach. Ministers also adopted amended EFSF guidelines concerning intervention in the primary and secondary debt markets and precautionary credit lines in order to use leverage. Klaus Regling CEO of EFSF commented “Both options are designed to enlarge the capacity of the EFSF so that the new instruments available to the EFSF can be used efficiently”.

EFSF places €3 billion bond in support of Ireland

Frankfurt am Main – European Financial Stability Facility today placed a €3 billion long 10-year benchmark bond maturing on 4 February 2022 to fund the EFSF’s second disbursement as part of the financial assistance programme to Ireland.

The issuance spread at reoffer was fixed at mid swap plus 104 basis points. This implies a reoffer yield for investors of 3.591%.

In spite of the recent market volatility, the issue was met with solid demand with orders received in excess of €3 billion from real money investors around the world.

EFSF mandates Barclays, Crédit Agricole CIB and JP Morgan as joint lead managers for its next issue for Ireland

Luxembourg – The European Financial Stability Facility (EFSF) announces the appointment of Barclays, Crédit Agricole CIB and JP Morgan as joint lead managers for its next issue due to be launched shortly, subject to market conditions. The proceeds will be used in conjunction with the financial assistance programme for Republic of Ireland. The three institutions were selected from the 47 banks that comprise the EFSF Market Group.

Christophe Frankel, Deputy CEO and CFO of EFSF stated “as a relatively new issuer, we need to continue building long-term demand”.

EFSF’s top credit rating affirmed

Luxembourg – Following the official entry into force of the Amendments to the EFSF Framework Agreement on 18 October 2011, all three credit rating agencies affirmed the best possible credit rating – Standard & Poor’s “AAA”, Moody’s “(P)Aaa” and Fitch Ratings “AAA” – to the EFSF.

All three agencies have also assigned the highest quality short term rating to the EFSF – Standard & Poor’s “A-1+”, Moody’s “(P)P-1” and Fitch Ratings “F1+”.