EFSF places €7 billion one-year bond
Luxembourg – European Financial Stability Facility (EFSF) today placed a €7 billion one-year benchmark bond maturing on 3 December 2013. The issuance was priced at a reoffer yield for investors of 0.22%.
This inaugural one-year bond from EFSF was met with exceptionally strong demand with close to €9 billion in orders received from investors around the world.
Christophe Frankel, CFO and Deputy CEO of EFSF stated “Today’s one-year bond has allowed us not only to complete the remaining €3.6 billion from this year’s funding programme but also to gain a head start for 2013”.
J.P. Morgan, Morgan Stanley and Natixis acted as lead managers for this issue and Deutsche Finanzagentur acted as Issuance Agent.
The European Financial Stability Facility (EFSF) was incorporated in Luxembourg on 7 June 2010. Its objective is to preserve financial stability of Europe’s Economic and Monetary Union by providing financial assistance to euro area Member States in difficulty. In order to fulfil its mission, the EFSF is authorised to issue bonds or other debt instruments on the market to raise funds needed to provide loans to countries in financial difficulties, intervene in the debt primary and secondary markets, act on the basis of a precautionary programme and finance recapitalisations of financial institutions through loans to governments including in non-programme countries. All financial assistance to Member States is linked to appropriate conditionality. EFSF issues are backed by guarantees given by euro area Member States of up to €780 billion. EFSF has a lending capacity of €440 billion.