EFSF Raises €1.5 Billion In Tap Of 2047 Bond

The European Financial Stability Facility (EFSF) on Tuesday raised €1.5 billion in a tap of a 31-year bond, raising the total outstanding volume of the May 2047 bond to €4.5 billion.
 
“Strong investor demand allowed us to increase the size of the tap to €1.5 billion from an originally planned €1 billion. This leaves only €500 million in funding needs for the EFSF for the second quarter. To avoid having to execute such a small transaction, we plan to raise this amount in the third quarter,” said Siegfried Ruhl, Head of Funding and Investor Relations at the EFSF.
 
The spread of the 1.375% bond was fixed at mid swaps plus 2 basis points, for a reoffer yield of 1.587%. Order books were in excess of €3.8 billion.
 
Bookrunners for the deal were HSBC, LBBW and Morgan Stanley.