EFSF RAISES €7 BILLION WITH DUAL-TRANCHE BOND SALE, COMPLETES 35% OF ANNUAL FUNDING
8 January 2024
EFSF Press Release no. 1/2024
(Luxembourg) - The European Financial Stability Facility (EFSF) raised €7 billion on Monday in a dual-tranche bond transaction – more than one third of its €20 billion long-term funding programme for 2024.
The EFSF raised €5 billion in a new long 5-year 2.625% bond, maturing on 16 July 2029. The spread was fixed at mid-swaps plus 11 basis points, for a reoffer yield of 2.724%. The order book was above €24 billion, excluding joint lead manager interest.
A further €2 billion was raised with the reopening of the outstanding 30 August 2038 bond with a coupon of 3.375%. The spread was fixed at mid-swaps plus 46 basis points, for a reoffer yield of 3.174%. The order book was close to €20 billion, excluding joint lead manager interest. The new outstanding amount of this bond is €4 billion.
“For our inaugural bond transaction of 2024, we opted for a dual tranche today to capitalise on the strong interest from investors we saw in the first week of January. By offering a new 5-year and tap of the 2038 maturity we offered investors alternatives to the 10-year bond supply in the market this week,” said Silke Weiss, EFSF Head of Funding and Investor Relations.
The joint lead managers were BNP Paribas, Bank of America and JP Morgan.
The EFSF is rated Aaa (Moody's, stable) / AA (S&P, negative) /AA- (Fitch).
The EFSF is the sister borrower and predecessor of the ESM. The EFSF continues to issue bonds as part of rollover management of existing loans but cannot provide new loans.
Media Enquiries
Cédric Crelo
Head of Communications and Chief Spokesperson
Phone: +352 260 962 205
c.crelo@esm.europa.eu
Anabela Reis
Deputy Head of Communications and Deputy Chief Spokesperson
Phone: +352 260 962 551
a.reis@esm.europa.eu
George Matlock
Senior Financial Spokesperson
Phone: +352 260 962 232
g.matlock@esm.europa.eu
Juliana Dahl
Principal Speechwriter and Principal Spokesperson
Phone: +352 260 962 654
j.dahl@esm.europa.eu
About the EFSF
The European Financial Stability Facility (EFSF) was created as a temporary crisis resolution mechanism by the euro area Member States in June 2010. The EFSF has provided financial assistance to Ireland, Portugal and Greece. The assistance is financed by the EFSF through the issuance of bonds and other debt instruments. Since July 2013, the EFSF may no longer provide any further financial assistance.
European Financial Stability Facility Société Anonyme
6a Circuit de la Foire Internationale, L-1347, Grand Duchy of Luxembourg
R.C.S. Luxembourg B153414
