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The European Stability Mechanism (ESM) raised €2 billion on Monday with a new long 10-year bond issue, completing its second quarter funding needs.

The ESM issued €2 billion of the 0.01% bond maturing on 15 October 2031. The spread was fixed at mid-swaps minus 10 basis points, for a reoffer yield of 0.029%.

The order book was over €12 billion, excluding joint lead manager interest.

Euro area accounts were allotted 56%, with UK and Swiss investors the second-largest region at 25%. By investor type, banks were allotted 49% followed by fund managers at 38%.

The European Stability Mechanism rated Aa1 (stable) (Moody’s) / AAA (stable) (S&P) / AAA (stable) (Fitch) has mandated DZ BANK, Goldman Sachs Bank Europe SE and Nomura to joint lead manage its upcoming new Long 10-year (Oct-31) EUR 2bn No-grow Benchmark in REGS Bearer format. No further group. The transaction is expected to be launched and priced in the near future, subject to market conditions. Joint Bookrunners will be paid a fee in connection to the transaction. FCA/ICMA stabilisation.

Today ESM, the European Stability Mechanism, rated Aa1 (Moody’s) / AAA (Fitch) / AAA (S&P), has sent a Request for Proposal to a selection of banks from the EFSF/ESM Market Group with regards to an upcoming transaction scheduled for the week of 26th April 2021, subject to market conditions.

The result of the auction of 20 April 2021 for the 6-months Bills of the ESM was as follows:
Total Bids €9,426.00mn
Competitive bids €1,691.00mn
Non-competitive bids €7,735.00mn
Allotment / Issue volume €1,500.00mn