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The European Financial Stability Facility (EFSF) raised €5 billion towards its first quarter €7 billion funding needs with a dual tranche of two new bonds issued on Monday, which drew a record combined order book of €70 billion, despite recording an all-time low yield for both maturities.

The EFSF raised €3 billion in a new 10-year 0% no-grow bond, maturing on 20 January 2031. The spread was fixed at mid-swaps minus 11 basis points, for a reoffer yield of -0.317%. The order book was €38.5 billion, excluding joint lead manager interest.

(Luxembourg) - The European Financial Stability Facility (EFSF) raised €5 billion towards its first quarter €7 billion funding needs with a dual tranche of two new bonds issued on Monday, which drew a record combined order book of €70 billion, despite recording an all-time low yield for both maturities.

The EFSF, the European Financial Stability Facility rated AA (S&P)/Aa1 (Moody's) /AA (Fitch) has mandated Barclays, Deutsche Bank and J.P. Morgan as joint lead managers for its upcoming dual-tranche transaction consisting of a new 10yr benchmark due January 2031 and a new 31yr benchmark due January 2052 in REGS Bearer format. No further group.

The transaction is expected to be launched and priced in the near future, subject to market conditions. FCA/ICMA stabilisation

The European Stability Mechanism (ESM) will launch 12-months Bills of the European Stability Mechanism (ESM) by auction. An issue volume up to €1.1 billion is envisaged.

Time schedule of the auction procedure:
Date of invitation to bid: Monday, 11 January 2021
Bidding period: Tuesday, 12 January 2021, from 8:00 a.m. until 12:30 p.m. CET
Value date: Thursday, 14 January 2021
 

Today EFSF, the European Financial Stability Facility, rated Aa1 (Moody’s) / AA (Fitch) / AA (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 11th January 2021, subject to market conditions.

The result of the auction of 5 January 2021 for the 3-months Bills of the ESM was as follows:

Total Bids € 9,169.00 mn
Competitive bids € 1,732.00 mn
Non-competitive bids € 7,437.00 mn
Allotment / Issue volume € 1,499.95 mn