ESM-EFSF

The EFSF rounded up a giant order book for its second benchmark deal of the month on Tuesday ensuring its industrial scale funding task this year is off to a flying start.

The EFSF has mandated three banks for its second deal of the year. The trade will be a new five year line.

The triumphant return of Italy to the syndicated market with a 15 year conventional bond and a successful bills auction by the Kingdom of Spain [see separate story] has given another massive boost of confidence to peripheral Europe, already buoyed by Ireland’s €2.5bn tap issued last week.

The Italian treasury has wasted no time in returning to the syndicated benchmark market this week by awarding four banks the mandate for a new bond, following a stellar opening week for SSAs. Meanwhile, the European Financial Stability Facility (EFSF) has also elected to return to the new issue market and other borrowers will not be far behind, say senior bankers.

Bankers are preparing their RFPs for the European Financial Stability Facility (EFSF), which is expected to price its first euro trade of the year next week and is thought likely to want to print big. Meanwhile, the Kingdom of Belgium’s first syndication in nine months roared into the market today, booking over €7bn of orders.

Buoyant conditions on the first proper day of trading after the Christmas break indicate that SSAs are in for a red hot start to issuance next week when as much as €25bn of benchmark issuance could hit screens. But ultra low yields could mean issuers have to cough up when it comes to new issue premia.

The European Stability Mechanism is likely to price at a similar level to the European Financial Stability Facility when it launches its inaugural bond, despite structural differences between the two supranationals, according to analysts.

Supply starved money market funds may have helped the European Financial Stability Facility’s ability to raise a record amount during a syndicated deal on Tuesday, according to fund managers.

The European Financial Stability Facility adopted an innovative approach to tackling a €3.6bn hole in its 2012 funding target on Tuesday — and ended up printing its largest ever syndicated deal. The barnstorming trade pushes the supranational over the finish line for 2012 as well as taking a healthy chunk out of its 2013 needs.

The European Financial Stability Facility’s (EFSF) plans to wrap up its funding work for the year with a three year benchmark were thrown into disarray on Tuesday by Moody’s decision to downgrade France from Aaa to Aa1. The issuer has other avenues through which it can raise the remaining €3.6bn it requires.

The European Financial Stability Facility (EFSF) has mandated JPMorgan, Morgan Stanley and Natixis to lead manage a new three year transaction designed to complete the €3.6bn funding requirement it has remaining for the year.

The European Financial Stability Facility (EFSF) has sent RFPs to banks for ideas on raising the €3.6bn it has left for its 2012 long term funding programme.