EU bond issue for bailout nine times over-subscribed

DEMAND for EU bonds to help finance Ireland’s bailout were over-subscribed nine times yesterday but the country is expected to be charged more than 6% in interest for the five-year loan.

The European Financial Stability Facility (EFSF), which was raising the money on behalf of the eurozone member states, described the interest as “exceptionally strong” in what was its first step into the markets.

It was offering bonds worth €5 billion for Ireland and attracted the interest of more than 500 investors with orders worth a total of €44.5bn.