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EFSF completes Q2 long-term funding, raises €4.5 billion in two bond deals

The European Financial Stability Facility (EFSF) completed its second quarter funding needs with a dual-tranche transaction on Monday, raising the full €4.5 billion it had targeted.

The EFSF raised €3 billion in a new 3-year 0% benchmark bond, maturing on 24 April 2023. The spread was fixed at mid-swaps plus 4 basis points, for a reoffer yield of -0.226%. The order book was €7.7 billion.

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EFSF completes Q2 long-term funding, raises €4.5 billion in two bond deals

(Luxembourg) - The European Financial Stability Facility (EFSF) completed its second quarter funding needs with a dual-tranche transaction on Monday, raising the full €4.5 billion it had targeted.
The EFSF raised €3 billion in a new 3-year 0% benchmark bond, maturing on 24 April 2023. The spread was fixed at mid-swaps plus 4 basis points, for a reoffer yield of -0.226%. The order book was €7.7 billion.

How the ESM helps Europe
Following the outbreak of the Covid-19 crisis, the ESM is back at the centre of the debate in Europe. On 9 April, the EU finance ministers agreed that the ESM will contribute, along with the European Commission and the European Investment Bank (EIB), to the joint European crisis relief efforts.

The finance ministers have asked the ESM to grant a Pandemic Crisis Support credit line amounting to 2% of members’ GDP. That corresponds to around €240 billion for all 19 euro countries.

EFSF mandates HSBC, Nomura and Societe Generale as joint lead managers for its upcoming dual tranche

Luxembourg- Today (20 April) EFSF, the European Financial Stability Facility rated AA (S&P, stable)/Aa1 (Moody's, stable) /AA (Fitch, stable) has mandated HSBC, Nomura and Societe Generale as joint lead managers for its upcoming dual tranche, a new EFSF 3 year Fixed Rate Benchmark Bond and a tap of the EFSF Oct-29 Bond. 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.

Intervista di Klaus Regling al Corriere della Sera
Intervista di Klaus Regling al Corriere della Sera​
Pubblicato il 19 aprile 2020
Intervista condotta il 17 aprile 2020
Federico Fubini Original language: English
 

L’Eurogruppo prevede che il Mes estenda prestiti ai Paesi colpiti da Covid-19 sulla base di «termini standardizzati». Che significa?
Klaus Regling in interview with Corriere della Sera (Italy)
Interview with ESM Managing Director Klaus Regling
Published in Corriere della Sera (Italy), 19 April 2020
Interview conducted on 17 April 2020
Interviewer: Federico Fubini

Original language: English
 

Corriere della Sera: The Eurogroup expects the ESM to extend loans to countries affected by Covid-19 on the basis of "standardised terms". What does that mean?

ESM announces upcoming 6 month bill auction

The European Stability Mechanism (ESM) will launch 6-months Bills of the European Stability Mechanism (ESM) by auction. An issue volume up to EUR 2 billion is envisaged.

Time schedule of the auction procedure:
Date of invitation to bid: Monday, 20 April 2020
Bidding period: Tuesday, 21 April 2020, from 8:00 a.m. until 12:30 p.m. CET
Value date: Thursday, 23 April 2020

 

ESM 12 month bill auction results

The result of the auction of 15 April 2020 for the 12-months Bills of the ESM was as follows:
Total Bids € 5,110.00 mn
Competitive bids € 2,595.00 mn
Non-competitive bids € 2,515.00 mn
Allotment / Issue volume € 997.40 mn