EU Commission Raises €7 Billion in EU Bonds, Including €3 Billion in Green Bonds
- Record demand: The €7 billion dual-tranche bond issuance saw oversubscription rates of 17x for the 7-year bond and 27x for the 18-year green bond, reflecting strong investor confidence.
- Green bond focus: €3 billion of the proceeds will support EU Member States’ green projects under the NextGenerationEU Green Bond Framework.
- Strategic funding: The transaction brings the EU closer to its €65 billion funding target for the second half of 2024, financing policy programs like Recovery and Resilience Plans and support for Ukraine.
Details of the Transaction
The European Commission raised €7 billion in its 10th syndicated bond transaction of 2024, with €3 billion allocated as NextGenerationEU (NGEU) Green Bonds.
The issuance included:
- €4 billion tap of a 7-year bond maturing December 4, 2031, with a 2.5% coupon and a re-offer yield of 2.719%.
- €3 billion tap of an 18-year green bond maturing February 4, 2043, with a 1.25% coupon and a re-offer yield of 3.260%.
Joint lead managers for the transaction included BofA, CA-CIB, Deutsche Bank, HSBC, and Nomura.
Use of Proceeds
The funds raised will support key EU initiatives:
- Financing national Recovery and Resilience Plans (RRPs) under NextGenerationEU.
- Supporting Ukraine with over €10 billion already disbursed in 2024 under the Ukraine Facility.
- Advancing green projects under the NGEU Green Bond Framework, aligned with ICMA’s Green Bond Principles.
“Today’s €7 billion transaction demonstrates the EU’s ability to meet funding needs efficiently while adhering to the highest sustainability standards,” stated the European Commission.
Milestone Achievements
- Cumulative issuance: The EU has now raised €426.58 billion under its unified funding approach, with nearly €262 billion disbursed under the Recovery and Resilience Facility.
- Outstanding debt: Total EU debt now stands at €596.46 billion, including €22 billion in EU Bills.
The next issuance in the EU’s funding calendar is an EU Bond auction scheduled for November 25, 2024. Regular updates, including green bond impact reports, are available on the NGEU Green Bond Dashboard.
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