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Add to Preferred SourcesThe European Commission has raised a further €9 billion to support Europe’s recovery from the coronavirus crisis and its consequences, through the fourth NextGenerationEU bond issuance since the start of the program in mid-June. The European Commission issued a 7-year bond due on 04 October 2028. The bond was largely oversubscribed – over 11 times, with books exceeding €103 billion.
The strong demand confirms the ongoing interest by investors in EU securities, which enabled the Commission to place the bonds under very favorable pricing conditions, fully in line with the remarkable performance of the NextGenerationEU program so far.
Commissioner in charge of Budget and Administration, Johannes Hahn, said: ”With the fourth transaction under NextGenerationEU, we have built on the success of the initial deals. This transaction allows the Commission to maintain a steady flow of funding to our Member States, to support the recovery and help rebuild a greener, more digital and more resilient Europe.”
This is the fourth transaction under the NextGenerationEU program, following the €20 billion 10-year bonds that the Commission issued on 15 June 2021; the dual-tranche transaction of €15 billion from 29 June 2021 – that consisted of a €9 billion 5-year bond and a €6 billion 30-year bond, and the €10 billion 20-year bonds issued on 13 July 2021.
Following the transaction, the Commission has so far raised €54 billion under NextGenerationEU.
On that basis, the Commission has already made the first payments to a number of Member States under the Recovery and Resilience Facility and other EU budget programs.
In the course of 2021, the Commission expects to raise some €80 billion in bonds, to be complemented by short-term EU-Bills, as announced in the funding plan published in June 2021 and updated in September 2021.
The Commission will issue EU-Bills exclusively via its new auction platform. The first EU-Bills auction is planned to take place on 15 September 2021.
As announced earlier this month in its detailed issuance calendar for 2021, the Commission will hold two more syndicated transactions by the end of the year, in October and November. Following the release of the NextGenerationEU Green Bond Framework earlier in September, the Commission is preparing to issue the first NextGenerationEU Green Bond. Once completed, the NextGenerationEU green bond program will turn the EU into the world’s biggest green bond issuer.