(Finance) – The European Commissionwhich issues EU-Bonds on behalf of the European Union, has issued 7 billion euros of EU bonds today in its tenth syndicated deal for 2023. The dual tranche deal consisted of €4 billion in a new 20-year bond maturing April 4, 2044 and €3 billion in an EU 2.75% tap maturing October 5, 2026 .
“Investor interest in buying safe and liquid EU bonds in a market characterized by growing uncertainties has been strong,” reads a note, according to which offers close to 86 billion euros (48.7 billion for the first instrument and 37 billion for the second), with an oversubscription rate of more than 12 times.
The proceeds from this transaction will be used to support both the NextGenerationEU programme that the macrofinancial assistance program for Ukraine. With today’s operation, the Commission has completed around €21.7 billion of its financing program for the second half of 2023.
“In a volatile and uncertain market, investors have seized the opportunity to invest in safe and liquid EU bonds – he commented Johannes Hahn, commissioner for Budget and Administration – Thanks to continued investor interest, the EU funding program continues to finance political priorities within the EU and our neighbourhood. As we continue to implement the remainder of our 2023 funding program, we remain strictly in tune with the evolution of market conditions and disbursement needs of the beneficiary countries”.
THE joint lead manager of this transaction were Commerzbank, Deutsche Bank, Goldman Sachs, JP Morgan And Societe Generale.