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Luxembourg-based EFSF raises €3 billion through bond sale

Luxembourg-based EFSF raises €3 billion through bond sale

by AH 07.02.2018 From our online archive
Facility still needs €1 billion in funding for first quarter of 2018
The EFSF logo (Luxemburger Wort)

The Luxembourg-based European Financial Stability Facility (EFSF) – a body that has provided funding assistance to Ireland, Portugal and Greece – has raised €3 billion by selling a new 10-year bond.

It leaves the EFSF with just €1 billion in funding needs for the remainder of this quarter, it said in a statement on Wednesday.

Siegfried Ruhl, the organisation's head of funding and investor relations, said: "Today's deal was a very successful step towards completing the EFSF's first-quarter funding needs."

The offering was oversubscribed, with order books in excess of €14 billion, the EFSF said.

Bookrunners for the deal were Deutsche Bank, JP Morgan and Natixis.

The EFSF was created in 2010 as a temporary response to the eurozone's sovereign crisis.

It was was suceeded by the European Stability Mechanism (ESM) in 2012 as a permanent backstop to eurozone countries that are unable to tap debt markets.