The European Commission has raised today €11 billion of EU-Bonds in its 9th syndicated transaction for 2025.
The dual-tranche transaction concerned a €5 billion tap of the EU-Bond maturing on 13 December 2032 and a new €6 billion EU-Bond maturing on 12 December 2040. The 7-year bond was priced 99.114% with a re-offer yield of 2.889%, while the new 15-year bond was priced at 99.518%, with a re-offer yield of 3.666%. Bids received were in excess of €96 billion on the 7-year bond and in excess of €79 billion on the new 15-year bond. This equals oversubscription rates of approximately 19-times and 13-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 2.889%, equivalent to a price of 99.114%. The spread to mid-swap is 34 bps, which is equivalent to 42.2 bps over the Bund due on 15 August 2032 and -26.7 bps below the OAT due 25 November 2032. The final order book was of over €96 billion. New 15-year Bond Due on 12 December 2040, this bond carries a coupon of 3.625% and came at a re-offer yield of 3.666%, equivalent to a price of 99.518%. The spread to mid-swap is 75 bps, which is equivalent to 55.2 bps over the Bund due on 15 May 2041 and -30.7 bps below the OAT due 25 May 2040. The final order book was of over €79 billion. The joint lead managers of this transaction were BNP, Citi, Deutsche Bank, DZ Bank and Santander. Commerzbank, Danske, Intesa, KBC, Natixis, UBS and Unicredit acted as co-leads |
The Commission has now issued €46.12 billion of its €70 billion funding target for the second half of 202
