ESM raises €2 billion in  new 10-year Eurobond

 

LUXEMBORG – The European Stability Mechanism (ESM) raised €2 billion with a new 10-year bond on Monday.

The 2.75% 26 February 2035 maturity bond achieved a strong order book in excess of €8.5 billion, excluding joint lead manager interest. The spread was fixed at mid-swaps plus 42 basis points, for a re-offer yield of 2.859%.

“Today saw the first bond issuance of the year for the ESM. We witnessed particularly strong demand from the central bank/official institutions community, which represented 40% of allocations. Today’s bond raised €2 billion of the €7 billion target for the ESM this year,” said Francis Dassyras, Team Lead, Planning and Execution, ESM Funding and Investor Relations Team.

The joint lead managers for the ESM transaction were Bank of America, Deutsche Bank, and Banco Santander.

The ESM is rated AAA (S&P, stable) / Aaa (Moody’s, stable) / AAA (Fitch, stable).

The ESM is the sister borrower and successor to the European Financial Stability Facility (EFSF). The EFSF continues to issue bonds as part of rollover management of existing loans but cannot provide new loans.