January 15, 2014 / 8:27 AM / 4 years ago

Interest tops EUR5bn for EFSF's new five-year bond sale

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LONDON, Jan 15 (IFR) - The European Financial Stability Facility has set guidance on the sale of its new five-year euro benchmark bond at mid-swaps plus 8bp area after initial interest exceeded EUR5bn, said a bank managing the deal on Wednesday.

The EFSF, rated Aa1/AA/AA+, hired HSBC, Morgan Stanley and RBS to lead manage the deal on Tuesday, and the bonds were initially marketed to investors at mid-swaps plus 9bp area.

The transaction - EFSF's first bond issue this year - is expected to price later on Wednesday, and will yield around 1.3% at current market rates.

The EFSF has a funding target of EUR34.5bn for 2014, while its permanent successor the European Stability Mechanism plans to raise EUR17bn. (Reporting by John Geddie, Editing by Helene Durand, Julian Baker)

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