EFSF Hires Banks for New 16-Year Bond

By Emese Bartha Features Dow Jones Newswires

The European Financial Stability Facility hired banks Tuesday for the upcoming syndication of a new 16-year bond, with the transaction to be launched in the near future, subject to market conditions, it said.

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The banks hired are Bank of America Merrill Lynch, Credit Agricole CIB and HSBC.

The EFSF planned to issue 13 billion euros ($14 billion) in bonds in the second quarter of 2017 and reached this target in April. Therefore, the upcoming issuance will represent pre-funding.

The EFSF was created by the eurozone as a temporary crisis resolution vehicle in 2010. It doesn't provide financial assistance now, but continues to receive loan repayments from beneficiary countries, make interest and principal payments to holders of EFSF bonds and roll over outstanding bonds.

-Write to Emese Bartha at emese.bartha@wsj.com

(END) Dow Jones Newswires

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May 16, 2017 08:08 ET (12:08 GMT)