LONDON, Feb 26 (IFR) - Orders are in excess of EUR3bn for
the European Financial Stability Facility's new three-year bond,
said a market source on Tuesday, allaying fears that an
aggressive sell-off in Europe's periphery may dull investor
Credit Suisse, JP Morgan and Morgan Stanley have left
guidance unchanged at mid-swaps minus 5bp area, offering
investors around a 5bp premium to buy the new bonds.
"It is a sign of strength for the EFSF to come in this
environment," said one bank managing the deal.
"It shows that the market has hiccups but Europe ticks on,"
The transaction will be the Aa1/AA+/AAA rated rescue fund's
last benchmark transaction of the first quarter.
EFSF has so far raised EUR13bn of its EUR16.5bn Q1 long-term
funding target, including new seven- and five-year benchmarks,
an approximate EUR1bn tap of its 10-year via auction, and a
EUR1bn tap of its 25-year via syndication.
(Reporting by John Geddie; Editing by Julian Baker)