The European Commission issued three billion euros (3.8 billion U.S. dollars) of 30-year maturity bonds Monday on the back of strong and wide demand from investors.

 

The issuance was conducted on behalf of EU and under the European Financial Stability Mechanism (EFSM), and would be used to finance Portugal and Ireland evenly as part of their financial assistance packages, according to the Commission.

The bonds will mature on April 4, 2042, and bears a coupon of 3.75 percent. This long dated funding will further extend the average maturity of the EU loans to Ireland and Portugal and thereby improve debt sustainability and the long term outlook of both countries, the Commission said.

The issuance meets strong demands from investors within the EU, with German investors comprising 70 percent of demand, followed by United Kingdom of 13 percent. 81 percent of bonds were sold to insurance and pension funds, while 18 percent went to banks.

(VietNamNet/Xinhuanet)