ESM Raises €2 Billion, Completes Q1 Funding Needs

Luxembourg - The European Stability Mechanism (ESM) on Tuesday raised €2 billion by issuing a new benchmark 10-year bond, and completed first quarter funding needs.
The spread of the 0.01% coupon bond, which matures on 4 March 2030, was fixed at mid-swaps minus 8 basis points, for a reoffer yield of -0.217%. The order book on the no grow bond was €2.4 billion. Barclays, Commerzbank and JP Morgan were lead managers on the transaction.
“ESM completed first quarter funding with a 2 billion euros new 10-year benchmark. A clear guidance on pricing and deal size gave clarity to our investors in a volatile market and enabled a quick and smooth execution,” said Siegfried Ruhl, ESM Head of Funding and Investor Relations.
The ESM first quarter funding was €5 billion and for 2020 as a whole the target is set at €11 billion.