The European Commission successfully issued €11 billion in EU bonds in its second syndicated transaction of 2025. This included €5 billion in NextGenerationEU Green Bonds, supporting EU policies and green projects. The transaction involved a €6 billion tap of bonds maturing in 2031 and a €5 billion tap of Green Bonds maturing in 2050. With high investor demand, the bonds were oversubscribed significantly. The proceeds will finance EU programmes and green initiatives under the NextGenerationEU plan, guided by the NGEU Green Bond Framework aligned with ICMAs Green Bond Principles.
The bond syndication was managed by Citi, Deutsche Bank, HSBC, Morgan Stanley, and Société Générale. The EU has issued €26.50 billion towards its €90 billion bond target for the first half of 2025. More information is available online.
Background: The EU issues bonds to fund policies and projects under a unified funding approach, with all borrowing backed by the EU budget. Recent innovations include single-branded bonds and a repurchase facility to enhance market liquidity. The EU has disbursed substantial funds to member states and Ukraine under the NextGenerationEU and other programmes.