(Updates with previous issue in first paragraph.)
Sept. 28 (Bloomberg) -- The European Union is said to be planning to raise a further 1.1 billion euros ($1.5 billion) from bond investors to fund bailouts of Ireland and Portugal, less than a week after it sold 4 billion euros of debt.
The seven-year notes are being sold through the European Financial Stabilisation Mechanism, one of the EU’s two bailout funds, according to a banker involved in the transaction. The EFSM raised 4 billion euros from a sale of 15-year securities on Sept. 22 and a further 5 billion euros from a sale of 10-year bonds on Sept. 14, according to data compiled by Bloomberg.
The EFSM is run by the European Commission, the EU’s 27- nation executive arm while the second rescue fund, the European Financial Stability Facility, is overseen by euro area nations. The EFSM has already raised 26.9 billion euros from bonds this year to fund the rescues of Portugal and Ireland. This latest sale comes as officials race to put in place a package of measures that will ring-fence Greece.
--Editors: Michael Shanahan, Paul Armstrong
Paul Armstrong at Parmstrong10@bloomberg.net
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