The European Commission has raised €11 billion in its first syndicated transaction of 2025.
This involved a €6 billion bond maturing in 2028 and a €5 billion bond maturing in 2054. The three-year bond was priced at 99.999% with a yield of 2.628%, while the thirty-year bond was priced at 94.808% with a yield of 3.664%. The demand was high, with bids exceeding €82 billion for the three-year bond and €115 billion for the thirty-year bond.
The funds will support EU policies, particularly NextGenerationEU and aid to Ukraine.
Details of todays bond syndication
3-year Bond
Due July 4, 2028, with a coupon of 2.625% and a re-offer yield of 2.628%. The spread is 17 bps over mid-swap, equivalent to 32.4 bps over the Bund and 12.4 bps below the OAT.
30-year Bond
Due October 5, 2054, with a coupon of 3.375% and a re-offer yield of 3.664%. The spread is 127 bps over mid-swap, 82.0 bps over the Bund, and 29.4 bps below the OAT.
Barclays, BNP, JP Morgan, LBBW, and NatWest Markets managed the transaction.
This €11 billion transaction is a step towards the EUs €90 billion bond issuance target for early 2025. A full overview of all EU transactions can be found online. The next EU-Bond auction is scheduled for January 27, 2025.
Background
The European Commission borrows on behalf of the EU to fund policy programs, with all debt guaranteed by the EU budget. The Commission has issued €441.42 billion in EU bonds under the unified funding model. Funds support Member States and specific initiatives, including €13 billion for Ukraine.
The EUs total debt is approximately €611.09 billion.