The EU Commission raised EUR 11 billion of EU-Bonds Tuesday, in a 1st syndicated transaction for 2025 – the first step towards meeting the EU’s EUR 90 bn bond issuance target for the first half of the year.
The dual-tranche transaction concerned a new €6 billion EU-Bond maturing on 4 July 2028, and a €5 billion tap of the EU-Bond maturing on 5 October 2054. The 3-year bond was priced 99.999% with a re-offer yield of 2.628%, while the 30-year bond was priced at 94.808%, with a re-offer yield of 3.664%. Bids received were in excess of €82 billion on the 3-year bond and in excess of €115 billion on the 30-year bond. This equals oversubscription rates of approximately 14-times and 23-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
3-year Bond
Due on 4 July 2028, this bond carries a coupon of 2.625% and came at a re-offer yield of 2.628%, equivalent to a price of 99.999%. The spread to mid-swap is 17 bps, which is equivalent to 32.4 bps over the Bund due on 13 April 2028 and 12.4 bps below the OAT due on 25 May 2028.
The final order book was of over €82 billion.
30-year Bond tap
Due on 5 October 2054, this bond carries a coupon of 3.375% and came at a re-offer yield of 3.664%, equivalent to a price of 94.808%. The spread to mid-swap is 127 bps, which is equivalent to 82.0 bps over the Bund due on 15 August 2054 and 29.4 bps below the OAT due on 25 May 2054.
The final order book was of over €115 billion.
The joint lead managers of this transaction were Barclays, BNP, JP Morgan, LBBW and NatWest Markets.
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 2025 is also available in the EU funding plan. The next transaction in the EU’s indicative issuance calendar is an EU-Bond auction on 27 January 2025.
