• €11 billion raised: The European Commission secured €11 billion through a dual-tranche bond issuance, including €5 billion in NextGenerationEU Green Bonds.
• Strong investor demand: The 7-year bond was oversubscribed 13 times, and the 25-year green bond saw a 14-times oversubscription, with total bids exceeding €145 billion.
• EU policy funding: Proceeds will support NextGenerationEU initiatives, Ukraine aid, and green projects under Member States’ Recovery and Resilience Plans.

The European Commission issued €11 billion in EU-Bonds in its second syndicated transaction of 2025, split into a €6 billion tap on a 7-year bond (maturing December 2031) and a €5 billion tap on a 25-year NextGenerationEU Green Bond (maturing February 2050).

Investor appetite:

Demand was high, with bids surpassing €76 billion for the 7-year bond and €69 billion for the 25-year green bond. The re-offer yields stood at 2.654% and 3.357%, respectively.

Why it matters:

The funds will be used for EU policy programs, including Ukraine aid and green investments aligned with the NextGenerationEU framework. “All NGEU Green Bond issuances are guided by the NGEU Green Bond Framework, which aligns with the Green Bond Principles of the International Capital Market Association (ICMA),” the Commission stated.

Related Article: EU Commission Raises €7 Billion in EU Bonds, Including €3 Billion in Green Bonds

Market details:

• 7-year bond: Priced at 99.049%, carrying a 2.5% coupon, with a spread of 37 bps over mid-swap.
• 25-year green bond: Priced at 98.209%, carrying a 3.25% coupon, with a spread of 108 bps over mid-swap.
• Joint lead managers: Citi, Deutsche Bank, HSBC, Morgan Stanley, and Société Générale.

Looking ahead:

This issuance brings the Commission’s total funding to €26.5 billion toward its €90 billion bond issuance target for H1 2025. The next scheduled transaction is an EU-Bill auction on February 19, 2025.

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