ESM raises €4 billion in two bond issues
Press releases
ESM
Luxembourg – The European Stability Mechanism (ESM) today raised €4 billion in a dual-tranche transaction, through the issue of a new 6-year benchmark bond and a tap of an existing 16-year bond.
“The ESM’s first deal in the fourth quarter was received with enthusiasm by the market, enabling the ESM to meet two-thirds of its long-term funding needs for the quarter. With a combined order book of €7.2 billion, we could have opted for a much larger volume. Instead, we decided to stick to our strategy of having a regular market presence and keep €2 billion in store for later in this quarter,” said Kalin Anev Janse, ESM Management Board member responsible for funding.
The size of the new 6-year bond was €3 billion. It has a coupon of 0% and will mature on 18 October 2022. The spread at issuance was fixed at mid-swaps minus 22 basis points, implying a reoffer yield of minus 0.203%. Total orders were in excess of €5.3 billion.
The tap of the existing bond raised €1 billion, bringing the total volume up to €4 billion. This bond has a coupon of 1.125% and will mature on 3 May 2032. The spread at issuance was fixed at mid-swaps minus 13 basis points for a reoffer yield of 0.660%. Books were in excess of €1.9 billion.
Goldman Sachs International, Morgan Stanley and UniCredit were joint lead managers on the deal.
“The ESM’s first deal in the fourth quarter was received with enthusiasm by the market, enabling the ESM to meet two-thirds of its long-term funding needs for the quarter. With a combined order book of €7.2 billion, we could have opted for a much larger volume. Instead, we decided to stick to our strategy of having a regular market presence and keep €2 billion in store for later in this quarter,” said Kalin Anev Janse, ESM Management Board member responsible for funding.
The size of the new 6-year bond was €3 billion. It has a coupon of 0% and will mature on 18 October 2022. The spread at issuance was fixed at mid-swaps minus 22 basis points, implying a reoffer yield of minus 0.203%. Total orders were in excess of €5.3 billion.
The tap of the existing bond raised €1 billion, bringing the total volume up to €4 billion. This bond has a coupon of 1.125% and will mature on 3 May 2032. The spread at issuance was fixed at mid-swaps minus 13 basis points for a reoffer yield of 0.660%. Books were in excess of €1.9 billion.
Goldman Sachs International, Morgan Stanley and UniCredit were joint lead managers on the deal.
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