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Rolf Strauch, Member of Management Board, ESM

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Luxembourg – The European Stability Mechanism (ESM) today conducted a tap auction of a €3 billion 8-year bond maturing on 22 April 2024. An additional €961 million was issued, bringing the total size of the existing bond to just under €4 billion.

The transaction reduces the remaining funding needs for the ESM for the third quarter to €1 billion.

The Risk Committee is a permanent committee of the Board of Directors advising it on the overall current and future risk appetite of the ESM. It also assists the Board of Directors in defining, reviewing, and overseeing the implementation of the ESM risk management framework by the Managing Director.

The ESM places great emphasis on shareholder relations and engagement. The ESM participated in the various political fora where its shareholders are represented to discuss matters of relevance to its mandate, such as the Eurogroup, the Eurogroup Working Group, and the Task Force for Coordinated Action.

Luxembourg – The European Stability Mechanism (ESM) today issued a new 8-year €3 billion benchmark bond with a coupon of 0.125%, maturing on 22 April 2024.

The spread at issuance was fixed at mid swaps minus 14 basis points. This implies a reoffer yield for investors of 0.205%. Citi, Credit Agricole CIB & Deutsche Bank acted as lead managers for the issue. The total book size was over €4.2 billion.

Luxembourg – The European Stability Mechanism (ESM) today issued a new 16-year €3 billion benchmark bond with a coupon of 1.125%, maturing on 3 May 2032, completing its funding needs for the second quarter. The total book size was in excess of €4 billion.

“The ESM has achieved its funding targets for the second quarter with just two transactions. By adding a new 16-year bond to the 8-year deal earlier this month, we filled the gap between the outstanding 2026 and 2036 maturities and offered investors a new point on the curve, ” said Siegfried Ruhl, ESM Head of Funding.