Search
Luxembourg – The European Financial Stability Facility (EFSF) today placed a €6 billion 7-year benchmark bond maturing on 29 October 2020. The issuance spread was fixed at mid swap plus 20 basis points. This implies a reoffer yield for investors of 1.869%.
BNP Paribas, Credit Suisse and Morgan Stanley acted as lead managers for this issue.
Today's issue was met with solid demand, with more than €10.5 billion in orders received from investors worldwide.
Luxembourg – The European Stability Mechanism (ESM) launched today its long-term funding programme with a €7 billion 5-year benchmark bond with a coupon of 1.25%, maturing on 15 October 2018. The issuance spread at reoffer was fixed at mid swap minus 1 basis point. This implies a reoffer yield for investors of 1.288%.
Investor interest was exceptionally strong, with an order book of close to €21 billion from more than 200 investors worldwide. HSBC, J.P. Morgan and SGCIB acted as lead managers for this inaugural issue.
Not bigger, but better? The ESM prepares for lift-off
The European Stability Mechanism, Europe’s permanent bail-out borrower, is set to launch its first benchmark next week, almost three years after sister
organisation the European Financial Stability Facility debuted as the eurozone sovereign debt crisis began to bite. Christophe Frankel, deputy managing director and chief financial officer of the ESM, speaks to EuroWeek’s Tessa Wilkie about the supranational’s issuance plans.