The European Commission has today raised €10 billion of EU-Bonds in its 8th syndicated transaction for 2024, €5 billion of which in the form of NextGenerationEU (NGEU) Green Bonds.
The dual-tranche transaction concerned a new €5 billion bond due on 4 December 2031, and a €5 billion tap of the NGEU Green Bond maturing on 4 February 2050. The 7-year bond came at a re-offer yield of 2.604%, equivalent to a price of 99.329%, while the 25-year bond was priced 99.788%, with a re-offer yield of 3.262%. Bids received were in excess of €54 billion on the 7-year bond and in excess of €77 billion on the 25-year bond. This equals oversubscription rates of approximately 11-times and 15-times, respectively.
The proceeds of the transaction will be used to finance EU policy programmes as well as green projects in Member States’ national Recovery and Resilience plans (RRPs) – the roadmaps to spending under NGEU. All NGEU Green Bond issuances are guided by the NGEU Green Bond Framework.
The Commission has now issued approximately €28 billion of its €65 billion funding target for the second half of 2024. A full overview of all EU transactions executed to date is available online. A detailed overview of the EU’s planned transactions for the second half of 2024 is also available in the EU funding plan. The next transaction in the EU’s indicative issuance calendar is an EU-Bond auction on 23 September 2024.
Source: European Comission
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