Clifford Chance
Clifford Chance advises EFSF on EUR 27 billion Debt Issuance Programme and inaugural EFSF issue of EUR 5 billion
26 January 2011
Clifford Chance advises EFSF on EUR 27 billion Debt Issuance Programme and inaugural EFSF issue of EUR 5 billion
On 18 January 2011, the EUR 27 billion Debt Issuance Programme of the European Financial Stability Facility ("EFSF") was established and admitted to listing on the Luxembourg Stock Exchange. On 25 January 2011 EFSF announced that it had successfully placed its inaugural bond of EUR 5 billion which was heavily oversubscribed with a record-breaking order book of EUR 45.5 billion.
EFSF was incorporated as a Luxembourg corporate entity in June 2010 for the purpose of providing stability support loans to euro-area Member States which experience financial difficulties. It will finance such loans by the issuance of debt securities backed by up to EUR 440 billion of guarantees which euro-area Member States have committed to issue. All three leading ratings agencies have published provisional ratings of AAA, Aaa or AAA in relation to the securities to be issued by EFSF.
An international team at Clifford Chance led by Jonathan Lewis of the Paris office advised EFSF on the debt issuance programme and on the initial issuance of EUR 5 billion under the programme. The team also included Cédric Burford, Gemma Doyle and Sophie Guilhem-Ducléon (Paris), Christian Kremer, Steve Jacoby, Antonio Golino, Yoanna Stefanova and Louis Mamère (Luxembourg), Marc Benzler, George Hacket, David Detweiler and Holger Schelling (Frankfurt) and David Dunnigan, Robert Trefny, Simon James, George Georgiev and Patrick Dougherty (London).
The work on the debt issuance programme marks a further step in the significant involvement of Clifford Chance in advising in relation to the sovereign debt crisis in the euro zone:
- in spring of 2010, a team led by Jonathan Lewis and Frédérick Lacroix advised the European Commission in relation to the coordination and negotiation of the EUR 80 billion stability support loan provided by euro area Member States to Greece;
- in June 2010, a team comprised of Jonathan Lewis (Paris), Christian Kremer and Steve Jacoby (Luxembourg) and Simon James (London) advised on the creation and the incorporation of EFSF, the Framework Agreement which sets out the operational framework for EFSF and in relation to the subsequent ratings process;
- in December 2010, a team led by Jonathan Lewis advised in relation to the first loan facility agreement entered into between EFSF and Ireland.
The EUR 27 billion debt issuance programme is designed to raise in the capital markets the funds necessary to make loan disbursements to Ireland under its loan facility agreement.
The lead managers of the initial EFSF issuance of EUR 5 billion are Citi, HSBC and Société Générale whose legal advisers on this issue are Allen & Overy (Dan Lauder). The Note Trustee is Deutsche Trustee Company Limited (advised by Linklaters (Jasper Evans)).
Clifford Chance berät EFSF bei der Strukturierung ihres EUR 27 Mrd. Programms zur Emission von Anleihen
Die internationale Anwaltssozietät Clifford Chance hat die European Financial Stabilisation Facility (EFSF) bei der Strukturierung ihres Programms zur Emission von Anleihen mit einem Nennwert von bis zu 27 Milliarden Euro beraten. EFSF ist eine Luxemburger Gesellschaft, deren Aktionäre die Mitgliedstaaten der Euro-Zone sind. Sie wurde gegründet, um im Rahmen des "europäischen Rettungsschirms" Darlehen an Mitgliedstaaten, die in eine finanzielle Schieflage geraten sind, zu vergeben. Die unter dem Programm emittierten Anleihen dienen zur Refinanzierung dieser Darlehen am Kapitalmarkt. Die Anleihen werden von den Mitgliedstaaten der Euro-Zone garantiert.
Die erste Platzierung von Anleihen mit einem Volumen von 5 Milliarden Euro ist am 25. Januar 2011 erfolgt.
An der Beratung von EFSF waren die Clifford Chance-Büros in Paris, Luxemburg, London und Frankfurt beteiligt. Das Team wurde von Partner Jonathan Lewis (Banking & Finance, Paris) geleitet. Aus den deutschen Büros von Clifford Chance waren die Partner Dr. Marc Benzler und Dr. George Hacket, Counsel David Detweiler sowie Associate Holger Schelling (alle Banking & Capital Markets, Frankfurt) beteiligt.
Zum internationalen Beraterteam gehörten ferner die Partner Cédric Burford (Banking & Finance, Paris), Christian Kremer (Corporate, Luxemburg), Steve Jacoby (Banking & Finance, Luxemburg), David Dunnigan (Capital Markets, London), Robert Trefny (Capital Markets, London) und Simon James (Litigation & Dispute Resolution, London) sowie die Associates Antonio Colino (Capital Markets, Luxemburg), Louis Mamère (Corporate, Luxemburg), George Georgiev (Capital Markets, London) und Patrick Dougherty (Capital Markets, London).
