EU Commission Issues €6 Billion of NextGenerationEU Green Bonds in Fourth Syndicated Transaction for 2023
The European Commission has issued €6 billion of NextGenerationEU green bonds in its fourth syndicated transaction for 2023. The single tranche transaction was executed via a tap of the green bond due on 4 February 2048.
Investors demonstrated a strong interest in the transaction, which was over 12 times oversubscribed.
The Commission plans to fund 30% of its NextGenerationEU recovery programme by issuing NextGenerationEU green bonds. This will make the Commission the largest green bonds issuer in the world.
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Today’s transaction brings the total volume of NextGenerationEU green bonds issued to date at €42.5 billion. The proceeds of these bonds will be used to finance green projects from the Member States’ national Recovery and Resilience plans (RRPs) – the roadmaps to spending under NextGenerationEU. The pool of eligible expenditure for NextGenerationEU green bonds under Member States’ RRPs currently stands at €187 billion, with the amount due to increase as further requests for financing are still being submitted.
With today’s transaction, the Commission has raised €39.4 billion out of its overall €80 billion funding target for the first half of 2023, or 49% of the total. Out of the €80 billion funding target, some €70 billion will be directed to the NextGenerationEU recovery programme, and around €10 billion to the Macro-Financial Assistance+ programme for Ukraine.
A detailed overview of the planned transactions under the unified funding approach for the first half of 2023 is available in the EU funding plan.
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