Exclusive: ESM Head of Funding: We Pay Attention to Investor Interest in Longer-Dated Bonds

13 November 2025

By Marta Vilar – MADRID (Econostream) – The European Stability Mechanism is aware of some investor interest in longer-maturity bonds and would “pay attention” to that demand, according to Jun Dumolard, Head of Funding and Investor Relations at the ESM.

In an interview with Econostream on 30 October (transcript here), Dumolard said it was likely the ESM would maintain its usual issuance pattern of 3-, 5-, and 10-year maturities each year.

“I won't say it's rigid, we don't have to exactly stick to this, but it is quite likely that we will remain active along those lines, also because we want to be present on the market and favor liquidity as much as possible,” he said. “So, 3- to 10-year maturities will remain the comfort zone for our new issuances both for the ESM and EFSF.”

However, he said the ESM could adjust that pattern if market conditions warranted it, acknowledging the interest of some investors in longer-dated bonds.

“This is something we hear, and we pay attention to this feedback,” he said.

Asked how far out on the curve the ESM might go in a potential longer-dated issuance, Dumolard said maturities in the range of 15 to 20 years would be the most likely and reasonable.

“But again, unless we have significant adverse conditions or a significant reason to do it, at the moment that's still unlikely,” he said.

Looking ahead to next year, Dumolard said total issuance by the ESM and EFSF would likely amount to around €25 billion, down from €28.5 billion this year. The ESM’s issuance would remain unchanged at €7 billion, while the EFSF’s would fall to €18 billion, he said adding that issuance for both institutions should stay close to €25 billion annually over the next three years.

A benchmark bond size of €2 billion was “a good spot to be in,” Dumolard said, noting that additional funding could be raised through reopenings.

Asked about the prospect of another US dollar issuance in 2026, Dumolard said the ESM intended to "remain active" in that currency to strengthen ties with investors.

While there was no firm decision on issuing in other foreign currencies, he described that possibility as “difficult” given the need for those markets to offer both high liquidity and strong demand.

The ESM had no “strong need” to issue in other foreign currencies, he said, but remained open to the idea.

“But we have a shifting geopolitical situation,” he said. “So, if we do end up having stronger partnerships and relationships with other areas, perhaps Asia, Australia, others in North America, it might be a good way to diversify our tools.”