EFSF to price EUR8bn five years bond as books exceed EUR13bn: lead

LONDON: The European Financial Stability Facility has set the size of its new five-year bond at EUR8bn, as books rose over EUR13bn, a lead manager said on Tuesday.

Previously, the euro rescue fund, rated Aa1/AA+/AAA, had set the final spread at mid-swaps plus 9bp, while brokers were already offering the bonds 6 cents higher in the grey market.

The transaction is due to price later in the afternoon via BNP Paribas, Goldman Sachs International and HSBC and will substantially reduce the fund's second quarter funding target of EUR16.5bn.

It will also make a significant dent in its EUR58bn full-year funding target.