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