The European Commission has raised €11 billion of EU-Bonds in its 7th syndicated transaction for 2026.
The dual-tranche transaction concerned a €6 billion new 5-year EU-Bond maturing on 13 October 2031, and a €5 billion tap of the 20-year EU-Bond maturing on 12 October 2046.
Building on the pricing of recent syndications against the EU Bond curve, both maturities were priced against reference points in the EU Bond curve. This approach reflects the strong liquidity of the EU Bond curve, which can be used as a reliable reference point for the pricing of syndicated issuances when deemed desirable.
The transaction is part of the Commission's €80 billion funding target for the second half of 2026 .
Funds raised from EU issuances are used to support the European Union's political priorities, including support for a stronger, more competitive and resilient Europe, support to Ukraine and crucial investments in European defence.
The EU's total outstanding debt now stands at about €827.16 billion, of which €41.5 billion in the form of EU-Bills, and €84.2 billion in the form of NextGenerationEU Green Bonds.
EU-Bond transactions (syndications and auctions) executed to date in the second half of 2026 [EUR billion]
Today's bond syndication 5-year new Bond A €6 billion new EU-Bond due on 13 October 2031: this bond carries a coupon of 2.875% and came at a re-offer yield of 2.947%, equivalent to a price of 99.662%. The spread to the EU-Bond maturing on 14 October 2030 is 10 bps, which is an equivalent spread to mid-swap of 11.9 bps, and 26 bps over the Bund due 16 April 2031 and 9.8 bps below the OAT due 25 May 2031. The final order book was over €83 billion, with oversubscription rate of approximately 13.8-times. 20-year Bond tap A €5 billion tap of the EU-Bond due on 12 October 2046: this EU-Bond carries a coupon of 4.000% and came at a re-offer yield of 4.018%, equivalent to a price of 99.759%. The spread to the EU-Bond maturing on 12 October 2045 is 6 bps, which is an equivalent spread to mid-swap of 76.7 bps, and 55.5 bps over the Bund due 15 August 2046 and 28.9 bps below the OAT due 25 May 2046. The final order book was over €94 billion with an oversubscription rate of approximately 18.8 times. |
