EFSF bond anticipates huge investor demand

The European Union’s bailout fund is expecting overwhelming investor demand as it prepares for its first-ever bond issue tomorrow.

The €5bn (£4.25bn), five-year European Financial Stability Facility bond is already said to be multiple times oversubscribed by investors’ initial bids.

Some sources have told Reuters that orders for the bond are already in excess of €20bn.

An investor call arranged by the bond’s co-lead managers, Citigroup, HSBC and SG CIB on Monday had over 400 listeners, one source said.

The EFSF bond is to be a maximum of €5bn and the order books officially open at 8am UK time.

Investors have been told the spread would be in the range of mid-swaps plus eight basis points when the trade is officially announced.