Euro fund raises EUR3bn
EFSF sees strong demand for bond to boost Ireland and Portugal assistance.
The European Financial Stability Facility (EFSF), a rescue fund set up for troubled eurozone countries, has raised €3bn(US$3.9bn) from a three-year benchmark bond.
The issuance was oversubscribed, receiving €4.5bn of orders. The spread at reoffer was fixed at mid swap plus 40 basis points, implying a reoffer yield for investors of 1.77%.
The proceeds will be used in conjunction with the fund’s financial assistance programmes for Ireland and Portugal.
Credit Suisse, Deutsche Bank and Société Générale Corporate & Investment Banking were joint lead managers for the issuance. Deutsche Finanzagentur acted as issuance agent.
See also: Euro bailout fund plans EUR3bn bond
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