UPDATE 2-EFSF nears 2012 funding goal with new EUR5.9bn bond
(Adds new issue concession, bill sale)
LONDON, Oct 16 (IFR) - The European Financial Stability Facility's decision to opt for the five-year sweet spot looks set to pay off, with the issuer due to price a EUR5.9bn bond that will leave it with just EUR5.1bn-worth of long-term funding to raise over the remainder of the year.
The EFSF, rated Aaa/AA+/AAA, is due to price the bond later on Tuesday via Barclays, BNP Paribas and Goldman Sachs a t tightened guidance of mid-swaps plus 23bp after books closed in excess of EUR11bn.
The leads refined guidance to mid-swaps plus 23bp-25bp from initial talk of plus 25bp area after books topped EUR7bn.
At the final spread, observers estimated the new issue premium at around 7bp.
The deal stands in stark contrast to the eurozone rescue fund's previous bond offering - a EUR3bn 10-year - which was poorly received and failed to reach full subscription.
That bond priced in August at mid-swaps plus 57bp, the wide end of guidance, showing that the issuer is struggling to entice investors for longer maturities.
It was a marked downturn in the issuer's fortunes after it had printed its biggest syndicated deal on record a month earlier - a sell-out EUR6bn five-year issue which attracted a book of EUR8bn.
That bond, which priced at mid-swaps plus 50bp, has since rallied to plus 17bp, according to Tradeweb.
In addition, the EFSF raised EUR1.989bn via a six-month bill auction on Tuesday. (Reporting By Josie Cox; editing by Julian Baker, Alex Chambers)
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