(Teleborsa) – The European Commission has raised another 9 billion euros today through the fourth issue of bonds to finance the NextGenerationEU program. The bond – 7-year maturing on 4 October 2028 – received a demand 11 times higher than supply (approximately 103 billion euros). “The strong demand confirms the continuing interest on the part of investors in EU bonds”, underlines the EU executive, which allowed “to place the bonds on terms of very favorable price, fully in line with the remarkable performance of the NextGenerationEU program so far ”.
“With the fourth transaction under NextGenerationEU, we have built on the success of the initial agreements – commented Johannes Hahn, European Commissioner for Financial Planning and Budget – This transaction allows the Commission to maintain a steady flow of funding to our Member States, to support recovery and help rebuild a greener, more digital and more resilient Europe ”.
This is the fourth operation within the NextGenerationEU program, after the 10-year bond of 20 billion euros issued on 15 June 2021, the double tranche operation of 15 billion euros of 29 June 2021 (which consisted of a 5-year bond loan of 9 billion and a 30-year loan of 6 billion euros) and the 20-year loan of 10 billion euros issued on 13 July 2021.
Following today’s operation, the Commission has so far raised 54 billion euros under NextGenerationEU. Over the course of 2021, the EU executive plans to raise around 80 billion euros in bonds, to be integrated with short-term EU-Bills. As announced earlier this month, the Commission will hold two more syndicated operations later this year, a October and November. The joint lead managers of today’s transaction were Goldman Sachs Bank Europe, Landesbank Baden-Württemberg (LBBW), Morgan Stanley Europe, NatWest Markets and Société Générale.