The European Commission has today raised €11 billion of EU-Bonds in its 1st syndicated transaction for 2026.
The dual-tranche transaction concerned a new €6 billion EU-Bond maturing on 12 July 2029 and a €5 billion tap of the EU-Bond maturing on 12 October 2055. The 3-year bond was priced 99.839% with a re-offer yield of 2.426% and the 30-year bond was priced 98.934% with a re-offer yield of 4.061%. Bids received were in excess of €65 billion on the new 3-year bond and in excess of €97 billion on the 30-year bond. This equals oversubscription rates of approximately 11-times and 19-times, respectively.
The proceeds of the transaction will be used to finance EU policy programmes most notably in the context of NextGenerationEU and support to Ukraine.
Today's bond syndication New 3-year Bond Due on 12 July 2029, this bond carries a coupon of 2.375% and came at a re-offer yield of 2.426%, equivalent to a price of 99.839%. The spread to mid-swap is 3 bps, which is equivalent to 16.6 bps over the Bund due on 12 April 2029 and 8.6 bps below the OAT due 25 May 2029. The final order book was of over €65 billion. 30-year Bond tap Due on 12 October 2055, this bond carries a coupon of 4.000% and came at a re-offer yield of 4.061%, equivalent to a price of 98.934%. The spread to mid-swap is 90 bps, which is equivalent to 59.1 bps over the Bund due on 15 August 2056 and 39.0 bps below the OAT due 25 May 2055. The final order book was of over €97 billion. The joint lead managers of this transaction were BNP, BofA, Credit-Agricole CIB, Nomura and Santander. |
The Commission has now issued €11 billion of its €90 billion funding target for the first half of 2026
