EFSF Raises €4 Billion In Two Bond Deals

The European Financial Stability Facility (EFSF) met most of its third-quarter funding needs on Tuesday, raising €4 billion in a dual-tranche bond deal.
 
“Healthy investor appetite for both parts of today’s deal enabled a strong start for the EFSF in the third quarter. There was strong demand for the long end of the maturity spectrum, which we used to place a new 35-year benchmark bond. In addition, we could increase the liquidity of an existing 10-year bond,” said Siegfried Ruhl, EFSF Head of Funding and Investor Relations.
 
The EFSF raised €2 billion in a tap of a 0.95% 10-year bond, which will mature in February 2028. The spread was fixed at mid-swaps minus 9 basis points, for a reoffer yield of 0.755%. The order book was in excess of €3.1 billion. After settlement, the total outstanding volume of the bond will stand at €5 billion.
 
A new 35-year 1.75% bond, which will mature in July 2053, also raised €2 billion. The spread was fixed at mid-swaps plus 27 basis points, for a reoffer yield of 1.757%. The order book was in excess of €3.4 billion.
 
Bookrunners for the deal were Barclays, BNP Paribas and DZ Bank.