The European Commission has today raised €9 billion of EU-Bonds in its 3rd syndicated transaction for 2026.
The single-tranche transaction concerned a €9 billion new EU-Bond maturing on 12 December 2036. The 10-year bond was priced 99.342% with a re-offer yield of 3.325%. Bids received were in excess of €118 billion which equals to an oversubscription rate of approximately 13-times.
The transaction marked the first EU syndication using the EU curve as a reference to price the new issuance. This approach reduced pricing risks in a volatile market for participating investors and reflects a natural progression in the EU's funding approach, where the EU Bond curve is now liquid enough to enable such pricing when deemed desirable.
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 10-year new Bond Due on 12 December 2036, this bond carries a coupon of 3.250% and came at a re-offer yield of 3.325%, equivalent to a price of 99.342%. The spread to the EU-Bond maturing 12 December 2035 is 13 bps, which is an equivalent spread to mid-swap of 39.3 bps, and 46.3 bps over the Bund due on 15 February 2036 and 21.9 bps below the OAT due 25 May 2036. The final order book was of over €118 billion. The joint lead managers of this transaction were Barclays, DZ, Morgan Stanley, Societe Generale, and UBS. |
The Commission has now issued €45.4 billion of its €90 billion funding target for the first half of 2026
