EU bailout fund raises $6.7b for Ireland, Portugal

Updated: 2011-05-25 06:51


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BRUSSELS - The European Union (EU) Tuesday issued bonds worth 4.75 billion euros ($6.69 billion) to raise money for Ireland and Portugal.

Ireland will receive 3 billion euros ($4.23 billion) and Portugal will get 1.75 billion euros ($2.46 billion) as loan under the European Financial Stabilization Mechanism (EFSM), a bailout fund guaranteed by the EU budget.

"The third successful placement in 2011 confirms the acceptance of the European Union as a benchmark issuer and the continuous confidence of the market in the stability and assistance measures set-up by the EU together with the EFSF and the IMF," said the European Commission.

The 10-year bonds, which are rated triple A by the three biggest credit rating agencies (Standard & Poor's, Moody's Investors Service, and Fitch Group), were oversubscribed three times and books were closed within one and a half hour, the European Commission said.

The money raised through the issuance will be offered to the two countries on May 31.

According to the rescue plan agreed for Ireland last November, Dublin will receive 67.5 billion euros ($95.1 billion ) in loans from the EU and the International Monetary Fund (IMF), while Portugal will get 78 billion euros ($109 billion) under the rescue package endorsed earlier this month.


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