LONDON, May 7 (IFR) - The European Stability Mechanism has opened books on a 3bn no-grow October 2019 benchmark bond with guidance of 2bp area through mid-swaps, according to a source.
This is the tight end of initial price thoughts of flat area set by lead managers Bank of America Merrill Lynch, Citi, and Deutsche Bank on Tuesday afternoon.
The new benchmark is the first bond of the second quarter for the ESM, which plans to issue 4bn over the coming three months. The issuer has raised 6bn so far in 2014, 1bn more than planned, and will borrow 17bn in total this year. (Reporting by Sarka Halas, Editing by Helene Durand, Julian Baker)