EU beats expectations with Irish fundraising

The European Union's Eu5bn five year transaction has surpassed all expectations, with books closing after 45 minutes and orders in excess of Eu15bn. The result has raised the inevitable question of whether the 12bp over mid-swaps pricing was too generous. But with initial guidance only 2bp-5bp back of the EU secondary curve, could the lead managers realistically have pushed the deal any tighter? Elsewhere, the Republic of Austria will award the mandate today for its new syndicated government bond, which bankers expect to be launched next week. Read EuroWeek on Friday for full coverage of the EU deal and what the pricing means for those issuers poised to come to the market — including the EFSF, which has announced its primary dealer group and will start receiving pitches for its inaugural deal next week.