The European Commission has today raised €8 billion of EU-Bonds in its 4th syndicated transaction for 2025.
The dual-tranche transaction concerned a €5 billion tap of the EU-Bond maturing on 4 July 2028, and a €3 billion tap of the EU-Bond maturing on 4 October 2052. The 3-year bond was priced 101.052% with a re-offer yield of 2.283%, while the 30-year bond was priced at 77.217%, with a re-offer yield of 3.859%. Bids received were in excess of €41 billion on the 3-year bond and in excess of €45 billion on the 30-year bond. This equals oversubscription rates of approximately 8-times and 15-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 tap Due on 4 July 2028, this bond carries a coupon of 2.625% and came at a re-offer yield of 2.283%, equivalent to a price of 101.052%. The spread to mid-swap is 14 bps, which is equivalent to 31.1 bps over the OBL due on 13 April 2028 and 0.5 bps over the OAT due 25 May 2028. The final order book was of over €41 billion. 30-year Bond tap Due on 4 October 2052, this bond carries a coupon of 2.5% and came at a re-offer yield of 3.859%, equivalent to a price of 77.217%. The spread to mid-swap is 126 bps, which is equivalent to 86.1 bps over the Bund due on 15 August 2052 and -11.1 bps below the OAT due 25 May 2052. The final order book was of over €45 billion. The joint lead managers of this transaction were BNP Paribas, Deutsche Bank, JP Morgan, Natixis and Nomura. |
The Commission has now issued approximately €52.92 billion of its €90 billion bond issuance target for the first half of 2025
