The European Commission has today raised €11 billion of EU-Bonds in its 2nd syndicated transaction for 2026.
The dual-tranche transaction concerned a €6 billion tap of the EU-Bond maturing on 13 December 2032 and a €5 billion tap of the EU-Bond maturing on 12 October 2045. The 7-year bond was priced 99.835% with a re-offer yield of 2.776% and the 20-year bond was priced 98.799% with a re-offer yield of 3.837%. Bids received were in excess of €89 billion on the new 7-year bond and in excess of €83 billion on the 20-year bond. This equals oversubscription rates of approximately 15-times and 17-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 7-year Bond tap Due on 13 December 2032, this bond carries a coupon of 2.750% and came at a re-offer yield of 2.776%, equivalent to a price of 99.835%. The spread to mid-swap is +17 bps, which is equivalent to 23.8 bps over the Bund due on 15 November 2032 and 19.3 bps below the OAT due 25 November 2032. The final order book was of over €89 billion. 20-year Bond tap Due on 12 October 2045, this bond carries a coupon of 3.750% and came at a re-offer yield of 3.837%, equivalent to a price of 98.799%. The spread to mid-swap is +70 bps, which is equivalent to 52.5 bps over the Bund due on 4 July 2044 and 22.6 bps below the OAT due 25 May 2045. The final order book was of over €83 billion. The joint lead managers of this transaction were Goldman Sachs, JP Morgan, Natixis, Natwest and Nordea. |
The Commission has now issued €29.4 billion of its €90 billion funding target for the first half of 2026
