The European Commission, which issues EU-Bonds on behalf of the EU, has today raised a further €8 billion of EU-Bonds in its 11th syndicated transaction for 2023. The dual tranche transaction consisted of a new €5 billion, 5-year bond due on 5 December 2028 and a €3 billion tap of the NextGenerationEU Green Bond maturing on 4 February 2048.
The deal received strong interest from investors, who placed bids totalling over €66 billion for the new 5-year bond and over €70 billion for the 24-year NGEU Green Bond. This equals oversubscription rates of approximately 13 times and 24 times, respectively.
Today's transaction brings the total volume of NextGenerationEU green bond issuances to €47.2 billion, with proceeds being used to finance green projects from the Member States' national Recovery and Resilience plans (RRPs) – the roadmaps to spending under NextGenerationEU. NGEU green bond issuances are backed by a significant pool of eligible projects and are closely calibrated to Member State's reported green expenditures, which are now gathering momentum.
The transaction marked the EU's last syndicated transaction for this year. This brings the total issuance volume in the second half of this year to €34.2bn. The Commission has announced it will finalise its bond issuances for this year with an up to €4bn auction on 27 November.
