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Klaus Regling at Ambrosetti's 46th Annual Forum
Rolf Strauch at 2020 Bruegel Annual Meeting
EFSF taps 2026 bond for close to €1 billion in auction, completes Q3 funding

The European Financial Stability Facility (EFSF) today conducted a tap of its 0.625% bond maturing on 16 October 2026 through an auction, and completed its third quarter funding needs with the transaction.

The deal raised €999.80 million, bringing the total size of the bond to €3,999.80 million. The EFSF targeted to raise €5 billion in the third quarter.

EU000A1G0D88

The European Financial Stability Facility reopened the 0.625 % Bond of the EFSF launched on 10 April 2018 bringing the new total issue volume to €3.99980 billion.

EFSF taps 2026 bond for close to €1 billion in auction, completes Q3 funding

(Luxembourg) - The European Financial Stability Facility (EFSF) today conducted a tap of its 0.625% bond maturing on 16 October 2026 through an auction, and completed its third quarter funding needs with the transaction.

The deal raised €999.80 million, bringing the total size of the bond to €3,999.80 million. The EFSF targeted to raise €5 billion in the third quarter.

EFSF announces the reopening of an 8-year bond via auction

On 29 July 2020, The European Financial Stability Facility will reopen the 0.625 % Bond of the EFSF launched on 10 April 2018 and maturing on 16 October 2026, using an auction procedure. An increase up to €1 billion is envisaged for the issue. The current issue volume of the Bond amounts to €3 billion.

ISIN: EU000A1G0D88

Time schedule of the auction procedure:
Date of invitation to bid: Tuesday, 28 July 2020
Bidding period: Wednesday, 29 July 2020 from 8:00 a.m. until 12:30 p.m. CET

Why the Covid-19 credit line still makes sense
It is two months since the ESM became part of Europe’s response to the devastating Covid-19 pandemic crisis. Europe agreed that the ESM should provide a credit line worth up to €240 billion to help euro area member states cover healthcare costs related to Covid-19.

In that time, there has been much speculation around which countries would apply, as we identified that 11 of the 19 euros area countries could fund more cheaply via the ESM than by borrowing directly from capital markets.

How Europe’s pandemic response reduced market uncertainty
The eruption of the Covid-19 pandemic resulted in large market movements, as investors feared the financial and economic consequences of the crisis.
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Same crisis, different responses to Covid-19
Covid-19 painfully hit Europe and Asia. Policymakers in both regions reacted swiftly to the unprecedented downturn with large rescue packages but with different policy actions. Chief Economists Hoe Ee Khor from AMRO and Rolf Strauch from ESM explain why.

The Covid-19 pandemic has resulted in more than 20 million confirmed infections worldwide and more than 730,000 deaths up to now. Countries in Europe and Asia have been severely affected by the pandemic and the subsequent economic crisis.