The European Union intends to raise 2.3 billion euros in the bond market by the end of July after bringing forward its funding plans for Ireland earlier this month, the Triple A rated borrower confirmed.
The putative bond, which will contribute towards the aid package for Ireland, will be followed by another 3 billion euros fund raising in September. Portugal will receive 2 billion euros from the second debt offering, while Ireland will receive 1 billion euros, the EU said.
That will leave the EU, which has already raised 10.5 billion euros so far this year, with 4.7 billion euros to raise for Ireland and Portugal next year, of which 800 million euros will be used for Ireland and 3.9 billion euros.
«It was an operational decision to change our funding plans for this year. We did not have much left for funding in 2012, and so in co-ordination with the EFSF (European Financial Stability Facility), this made sense,» said Herbert Barth, the European Union’s senior borrowing advisor.
«It has not changed the overall amount to be raised under the EFSM (European Financial Stability Mechanism), but just means that we will raise a bit more this year, and less next year.»
The EFSF has 4.1 billion euros and 10.2 billion euros to raise respectively this year for Ireland and Portugal, according to its latest investor presentation, which was updated in June. A breakdown of that data shows 2.8 billion euros and 1.3 billion euros will be raised for Ireland in the second and fourth quarters respectively.
For Portugal, 5.2 billion euros, 3.4 billion euros and 1.6 billion euros are needed for Portugal for the second, third and fourth quarters.
buenosairesherald.com