European Union Plans Benchmark 20-Year Euro Bond For Ireland

The European Union is planning a benchmark-sized, euro-denominated, 20-year bond, one of the banks running the deal said Friday.

The issue's proceeds will be used under the European Financial Stabilization Mechanism to help fund the EU and International Monetary Fund aid package for Ireland.

Citigroup Inc., Deutsche Bank AG, DZ Bank, Royal Bank of Scotland Group PLC and UBS AG are the joint bookrunners on the new bond, which is expected to be issued in the coming weeks, subject to market conditions.

The European Union is rated triple-A by all three of the major ratings companies and is backed by the EU budget and the 27 EU member states.

-By Ben Edwards, Dow Jones Newswires; 44-20-7842-9287; ben.edwards@dowjones.com