ESM issues 16-year €3 billion bond

Luxembourg – The European Stability Mechanism (ESM) today issued a new 16-year €3 billion benchmark bond with a coupon of 1.125%, maturing on 3 May 2032, completing its funding needs for the second quarter. The total book size was in excess of €4 billion.

“The ESM has achieved its funding targets for the second quarter with just two transactions. By adding a new 16-year bond to the 8-year deal earlier this month, we filled the gap between the outstanding 2026 and 2036 maturities and offered investors a new point on the curve, ” said Siegfried Ruhl, ESM Head of Funding.

The spread at issuance was fixed at mid swaps plus 7 basis points. This implies a reoffer yield for investors of 1.160%. Barclays, DZ Bank and HSBC were joint lead managers on the deal.