By Laura Contemori – ROME (Econostream) – The European Stability Mechanism (ESM), the euro area's permanent rescue fund, on Tuesday raised $2 billion in a new five-year bond transaction.

The bond, which carries a 4.375% coupon, was reoffered at a yield of 4.405%, equivalent to 29bp over mid-swaps.

The bond will mature on September 2, 2031.

Crédit Agricole CIB, Citigroup Global Markets Europe AG and TD Global Finance Unlimited Company acted as joint lead managers.

The order book exceeded $6.1 billion, including joint lead manager interest, ESM said in a press release.

“The objective of the ESM's USD program is to diversify the investor base. Establishing and maintaining longstanding relationships with our valued investors through physical and virtual roadshows has borne its fruit today as we have been able to demonstrate a very well-diversified order book,” ESM Head of Funding and Investor Relations Jun Dumolard said.