Memo: EU € 2.7 billion 10-year bond for Portugal strongly oversubscribed

The European Union (EU) has issued a € 2.7 billion benchmark bond with 10 years maturity, seeing strong and widespread investor demand with books almost three times oversubscribed.

The proceeds will be on-lent to Portugal, as part of its financial assistance package and are adding to a € 1.8 billion 26y funding operation of last week. Both transactions together bring the average maturity of the EU loans to Portugal from 10.8 years to 12.2 years. The transaction was carried out by the European Commission on behalf of the EU under the European Financial Stabilisation Mechanism (EFSM).