EU raises EUR 3 bln for Ireland in bond auction

An EU long term bond issuance raised EUR 3 billion for Ireland yesterday ( February 27 ). Demand for the bonds, with a 3.396 percent yield and a 20-year maturity, was good and the auction run by the European Commission under the European Financial Stabilisation Mechanism (EFSM), received around EUR 5.5 billion orders.

Most investor demand came from Germany, Austria, the UK and Ireland, which together accounted for around 80 percent of orders. The funds raised will be passed onto Ireland, following the successful fifth review of the financial assistance package agreed in December 2010. This was the second EU bond issuance of 2012, after EUR 3 billion was raised in 30 year bonds for Ireland and Portugal in January. In 2011, a total of EUR 29.2 billion was raised under the scheme, EUR 28 billion went to Ireland and Portugal and the remaining EUR 1.2 billion was disbursed to Romania. The EU plans to raise a further EUR 7 billion for Ireland and Portugal in 2012. Liam Lever, liam@romania-insider.com