EU to Pay 2.59% Interest on Initial 5-Year Bonds for Irish Aid
This article is for subscribers only.
The European Commission said it will pay 2.59 percent interest on 5 billion euros ($6.6 billion) of bonds sold to help finance the aid package for Ireland and called investor demand for the securities “very strong.”
The commission said the five-year bonds sold through its European Financial Stabilization Mechanism were priced to yield 12 basis points more than the mid-swap rate. Barclays Capital, BNP Paribas SA, Deutsche Bank AG and HSBC Holdings Plc managed the sale, the first by the EFSM as part of its 22.5 billion-euro share of the 85 billion-euro Irish rescue.