Clifford Chance

Strategic role for Clifford Chance in Euro debt crisis resolution

Clifford Chance recently advised the European Stability Mechanism ("ESM") on its debt issuance programme and on the inaugural issue of EUR 39 billion of notes, on 5 December 2012.

The first issue of ESM notes was used to finance the first ESM lending operation to the Kingdom of Spain to finance the re-capitalisation of the Spanish banking sector.

Five different offices of Clifford Chance were involved in this transaction:

• Paris office: Jonathan Lewis and Cedric Burford (Partners), Michel Petite (Of Counsel), Gemma Doyle, Mike Quigley, Jennifer Mitchell, Andrew McCann and Sophie Guilhem-Ducléon.
• Luxembourg office: Steve Jacoby, Christian Kremer (Partners), Cameron Saylor and Louis Mamère.
• London office: Christopher Walsh (Partner), Rebecca Jarrett, Lara Reis and Sara Somogyi.
• Madrid office: Yolanda Azanza, Eduardo Garcia, José Manuel Cuenca and José Garcia de Enterria (Partners).
• Frankfurt office: Marc Benzler, George Hacket (Partners) and  David Detweiler.

Clifford Chance also advised European Financial Stability Facility ("EFSF") in relation to the Greek debt exchange transaction, the further instalment of financial support to Greece and the issue of notes by EFSF to finance these operations.

The buy-out operation was for a face value of EUR 31.9 billion of debt, which was exchanged for EUR 11.29 billion of Notes issued by EFSF.  In addition, EFSF notes of  EUR 16 billion have been issued to finance further disbursements under the financial assistance programme to Greece.

Four different offices of Clifford Chance were also involved in this transaction

• Paris office: Jonathan Lewis and Cedric Burford (Partners), Michel Petite (Of Counsel), Sophie Guilhem-Ducléon (Counsel), Gemma Doyle, Mike Quigley, Jennifer Mitchell and Andrew McCann.
• London office: Christopher Walsh, Andrew Yianni, Deborah Nache-Zandstra, Simon James (Partners), Rebecca Jarrett, Lara Reis and Sara Somogyi.
• Luxembourg office: Steve Jacoby, Christian Kremer (Partners), Cameron Saylor and Louis Mamère
• Frankfurt office: Marc Benzler (Partner), David Detweiler (Counsel) and George Hacket.

These transactions follow on the work that Clifford Chance has been performing since 2010 in relation to the euro debt crisis including the initial Greek loan facility, the creation of EFSF, the financial support programmes to Ireland, Portugal, Greece and Spain and the issuance of bonds to finance these programmes.

In 2012 EFSF won two awards from Euroweek magazine regarding its debt issuance programme:

• Overall bond deals of the year: European Financial Stability Facility (€ 6 billion 1.625% - September 2017)
• Deals of the year by category (EURO SUPRA-NATIONAL AGENCY): European Financial Stability Facility (EFSF) (€ 6 billion 1.625% September 2017)