EU bailout fund places first-ever 25-year bond

(FRANKFURT) - The eurozone's temporary financial rescue fund, the EFSF, said on Tuesday that it had raised 1.5 million euros ($1.9 billion) in its first-ever 25-year bond issue.

The European Financial Stability Facility has already issued bonds with maturities ranging from three months to 20 years.

"The successful execution of this issue highlights investors' trust in the EFSF name. By adding a 25-year issue today, EFSF now has a wide offering right across the yield curve," said the fund's chief financial officer and deputy chief Christophe Frankel.

The EFSF is able to borrow money on sovereign debt markets at cheap rates owing to backing from European countries like Germany, and can pass on the funds on to countries which find it harder to obtain favourable rates.

Three countries are currently in that situation; Greece, Ireland and Portugal.