The European Commission on Wednesday raised 4.75 billion euros in its second bond issuance this week, as they sold five year debt to fund the bailout for Portugal.
The Commission said that the proceeds will be provided as a loan under the European Financial Stabilization Mechanism (ESFM), to be disbursed to Portugal on 1 June 2011
The Wednesday bonds mature on June 3, 2016 pays a coupon of 2.75% and were priced at the benchmark swap rate. Investors from Asia acquired 16% of the securities, central banks and other institutions bought 36% of the debt, as the EU received strong bids of 10 billion euros.
This is the second say in two days to provide the funds for the European Financial Stabilization Mechanism to complete its transactions for the second quarter. The commission said that following the sales disbursements to Ireland and Portugal will be made next week.