The European Union (EU) will sell a new 10-year benchmark bond that will fund lending to Portugal, Reuters reports. The EU intends to raise €7 billion to €10 billion via the European Financial Stabilisation Mechanism (EFSM), adds Xinhua. The notes will be issued in two or three transactions with maturities of between five years and 15 years.

The first deal by the EU/EFSM will be a benchmark bond with 10 years maturity due in September 2021. EFSM issuance is being coordinated with the European Financial Stability Facility (EFSF). The EU/EFSM and EFSF are likely to raise a further €10 billion to €13 billion in funds for Ireland and Portugal this year.

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