EU receives 76 bln euro demand for first recovery fund bond - lead manager
June 15 (Reuters) - The European Union received over 76 billion euros ($92.18 billion) of initial demand for the first bond backing its recovery fund on Tuesday, according to a lead manager memo seen by Reuters, seeing strong demand for its first step to fund member states' economic recovery from the COVID-19 pandemic.
The sale of the 10-year bond, expected to raise 10 billion euros later on Tuesday, is the first of up to 800 billion euros of issuance that will back grants and loans to member states until 2026, transforming the EU into a leading debt issuer.
Price guidance on the bond, due Jul 4 2031, has been cut down to around flat to the mid-swap rate, according to the memo, from around one basis point over the mid-swap level when the sale started on Monday.
The EU hired BNP Paribas, DZ Bank, HSBC, IMI-Intesa Sanpaolo and Morgan Stanley as joint lead managers for the deal on Monday. ($1 = 0.8245 euros) (Reporting by Yoruk Bahceli Editing by Rachel Armstrong)
