Brussels, 24 January 2024
The European Commission, which issues EU-Bonds on behalf of the EU, has raised a further €8 billion of EU-Bonds in its 1st syndicated transaction for 2024. The dual tranche transaction raised €3 billion through a 7-year bond due on 4 December 2030 and €5 billion via a 30-year bond due on 4 March 2053.
Investor demand for the transaction was exceptional, with bids totalling €81 billion on the 7-year bond and €99 billion on the 30-year bond. This equals oversubscription rates of approximately 27 times and 20 times, respectively.
In 2024, the Commission is continuing to execute its funding operations using its unified funding approach. Under this approach, funding for different borrowing programmes is financed through the issuance of single branded “EU-Bonds” rather than separately labelled bonds for individual programmes.
The Commission has now issued approximately €13 billion of its €75 billion funding target for the first half of 2024. A full overview of all EU transactions executed to date is available online. A detailed overview of the EU’s planned transactions for the first half of 2024 is also available in the EU funding plan.
The Commission borrows on international capital markets on behalf of the EU and disburses the funds to Member States and third countries under various borrowing programmes. EU borrowing is guaranteed by the EU budget, and contributions to the EU budget are an unconditional legal obligation of all Member States under the EU Treaties.
A press release is available online.
Source – EU Commission