The European Financial Stability Facility (EFSF) has sold €3bn of debt in an oversubscribed auction, passing its first major test of 2012.
It said demand for the 3-year bonds had been 'strong' and outstripped supply, with the auction 1.5 times covered with bids totalling €4.5bn. The EFSF said the bonds had a yield of 1.77%, having been fixed at a price of mid-swap plus 40 basis points. The auction should quell investor fears over the stability of the eurozone in the short term after the first hurdle was overcome. Christophe Frankel, deputy CEO and CFO of the EFSF, said: "The continued support from our investors shows that EFSF has established itself as a quality supranational issuer." Money raised will be used to s...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
