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(Luxembourg) - The European Stability Mechanism (ESM) raised €2 billion with a new 3-year bond on Monday, for the first time completing its 2024 long-term funding programme before the fourth quarter.

The 2.375% 30 September 2027 maturity bond achieved an order book in excess of €6.6 billion, including €400 million joint-lead manager interest. The spread was fixed at mid-swaps plus 8 basis points, for a re-offer yield of 2.392%.

Today ESM, the European Stability Mechanism, rated Aaa (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, subject to market conditions.

The result of the auction of 17 September for the 6-month Bills of the ESM was as follows:

Total Bids: € 2,698.00 mn

Competitive bids € 829.00 mn

Non-competitive bids € 1,869.00 mn

Allotment / Issue volume € 1,099.32 mn

Today in my intervention on the macroeconomic situation, I focused on the market volatility during the summer months, which showcased the uncertainty surrounding the economic outlook and showed that we need to be vigilant in these times of a timid recovery in Europe. Let me focus on two volatility events that occurred over the last three months, where we had two spikes on financial markets.

The European Stability Mechanism (ESM) will launch 6-months Bills of the European Stability Mechanism (ESM) by auction. An issue volume up to EUR 1.1 billion is envisaged.

Time schedule of the auction procedure: 
Date of invitation to bid: Monday, 16 September 2024 
Bidding period: Tuesday, 17 September 2024, from 8:00 a.m. until 12:30 p.m. CET 
Value date: Thursday, 19 September 2024