The European Commission has today issued a further €10 billion to support Europe’s recovery from the coronavirus crisis and its consequences, in a third NextGenerationEU bond since the start of the programme in mid-June. The Commission issued a 20-year bond due on 4 July 2041, which was welcomed by the market with a very strong interest, with books close to €100 billion – the largest ever order book for a new 20-year bond.
Thanks to the almost 10-fold oversubscription – a demonstration by the ongoing strong interest by investors – the Commission has obtained very favourable pricing conditions, fully in line with the strong performance of the NextGenerationEU programme so far.
This was a dual-tranche transaction, and the Commission raised further €5.25 billion in 10-year back-to-back loan due 22 April 2031 for its European Financial Stabilisation Mechanism (EFSM) and Macro-Financial Assistance (MFA) programmes.
Following today’s transaction, the Commission has so far raised €45 billion under NextGenerationEU. The funds will now be used for the first payments under NextGenerationEU, under the Recovery and Resilience Facility and various EU budget programmes.
More information is available in the press release.