The European Commission, which issues EU-Bonds on behalf of the EU, has today issued a further €7 billion of EU-Bonds in its 10th syndicated transaction for 2023. The dual tranche transaction consisted of €4bn in a new long 20-year bond due on 4 April 2044 and €3bn in a tap of the EU 2.75% due on 5 October 2026.
Investors' interest to buy the safe and liquid EU bonds in a market with increased uncertainties was strong. They placed bids close to €86 billion, making for an oversubscription rate of over 12 times.
The proceeds of this transaction will be used to support both the NextGenerationEU recovery programme and the Macro-Financial Assistance+ programme for Ukraine, in line with the Commission's approach of issuing single branded "EU-Bonds" rather than separately labelled bonds for individual programmes.
