The European Commission has today raised €9 billion of EU-Bonds in its 7th syndicated transaction for 2024.
The dual-tranche transaction concerned a new €5 billion bond due on 5 October 2029, and a €4 billion tap of the EU-Bond maturing on 5 October 2054. The 5-year bond came at a re-offer yield of 2.952%, equivalent to a price of 99.640%, while the 30-year bond was priced 96.418%, with a re-offer yield of 3.751%. Bids received were in excess of €66 billion on the 5-year bond and in excess of €80 billion on the 30-year bond. This equals oversubscription rates of approximately 13-times and 20-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).
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Today’s bond syndication 5-year line Due on 5 October 2029, this bond carries a coupon of 2.875% and came at a re-offer yield of 2.952%, equivalent to a price of 99.640%. The spread to mid-swap is 11 bps, which is equivalent to 43 bps over the Bund due on 15 November 2029 and 1 bps through the OAT due on 25 November 2029. The final order book was of over €66 billion. 30-year tap Due on 5 October 2054, this bond carries a coupon of 3.375% and came at a re-offer yield of 3.751%, equivalent to a price of 96.418%. The spread to mid-swap is 103 bps, which is equivalent to 85 bps over the Bund due on 15 August 2054 and 8 bps through the OAT due on 25 May 2054. The final order book was of over €80 billion. The joint lead managers of this transaction were Bank of America, BNP Paribas, DZ Bank, Morgan Stanley and Nomura. |
The Commission has now issued approximately €9 billion of its €65 billion funding target for the second half of 2024
