European Commission issues €7 billion in its 3rd syndicated transaction of 2024
The European Commission has today raised €7 billion of EU-Bonds in its 3rd syndicated transaction for 2024.
The transaction concerned a new, single-tranche €7 billion NextGenerationEU (NGEU) Green Bond due on 4 February 2050. The long 25-year bond came at a re-offer yield of 3.339%, equivalent to a price of 98.481%. Bids received amounted to €86.5 billion, resulting in an oversubscription rate of over 12 times.
The proceeds of the transaction will be used to finance green projects in Member States’ national Recovery and Resilience Plans (RRPs) – the roadmaps to spending under NextGenerationEU. All NGEU Green Bond issuances are guided by the NGEU Green Bond Framework, which is aligned with the Green Bond Principles of the International Capital Market Association (ICMA).
| Today’s bond syndication
Due on 4 February 2050, this bond carries a coupon of 3.25% and came at a re-offer yield of 3.339%, equivalent to a price of 98.481%. The spread to mid-swap is 80 bps, which is equivalent to 78.5 bps over the green Bund due on 15 August 2050 and 6.7 bps over the green OAT due on 25 June 2049. The final order book was of over €86.5 billion. The total amount of the bond outstanding is now €7 billion. The joint lead managers of this transaction were Barclays, JP Morgan, Morgan Stanley, Société Générale and UniCredit. |
The Commission has now issued approximately €35.5 billion of its €75 billion funding target for the first 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 first half of 2024 is also available in the EU funding plan. The next transaction in the EU’s indicative issuance calendar is an EU-Bills auction on 20 March 2024.