The EU's bailout fund on Tuesday hailed what it termed "exceptionally strong demand" as it raised seven billion euros ($9 billion) in one-year debt. The first ever one-year offering from the European Financial Stability Facility (EFSF) "was met with exceptionally strong demand with close to nine billion euros in orders received from investors around the world," it said. The bonds were sold with an average yield of 0.22 percent, meaning investors were prepared to accept very low returns for the relative safety of parking their cash with the EFSF fund. "Today's one-year bond has allowed us not only to complete the remaining 3.6 billion euros from this year's funding programme but also to gain a headstart for 2013," said the fund's chief financial officer, Christophe Frankel. Last week, the EFSF was compelled to postpone a planned auction of three-year bonds after Moody's downgraded France by one notch from its top rating. The move meant that EFSF's new long-term issuance -- currently rated Aaa by Moody's -- no longer satisfied the necessary criteria for selling debt, the agency explained. Long-term bond issues of the EFSF, the bailout fund set up to assist struggling eurozone countries such as Greece or Ireland, have to be fully backed by countries that enjoy a similar rating to its own top rating. France has dropped out of that exclusive club -- which now includes only Finland, the Netherlands, Germany and Luxembourg -- so the fund does not have sufficient guarantees to issue long-term debt. The fund said it would issue one-year bonds until the situation had been resolved.
GMT 12:09 2018 Monday ,26 November
Black Friday less wild as more Americans turn to online dealsGMT 15:07 2018 Sunday ,18 November
Refugee host countries discuss UNRWA's financial crisisGMT 17:22 2018 Wednesday ,31 October
Russia climbed to 31st place in Doing Business-2019 ratingGMT 16:53 2018 Wednesday ,17 October
"Putin" We need for collective restoration of Syria's economyGMT 14:02 2018 Friday ,12 October
Govt to announce incentives package for Overseas PakistanisGMT 18:26 2018 Saturday ,06 October
Dubai attracts Dh17.7 billion in foreign direct investmentGMT 09:02 2018 Friday ,21 September
Economy of Georgia demonstrates "strong signs of recovery"GMT 09:03 2018 Wednesday ,24 January
German investor confidence surges in JanuaryMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor