EU raises €7b in successful bond sale
The European Union announced on Tuesday that it had successfully raised €7 billion through a syndicated bond sale, attracting strong investor demand. The offering, which included both conventional and green bonds, was significantly oversubscribed, with orders exceeding €146 billion.
This is EU’s 10th syndicated transaction for 2024, €3 billion of which in the form of NextGenerationEU (NGEU) Green Bonds.
The EU opted for a syndicated bond sale to diversify its investor base and expedite the fundraising process. The seven-year bond was priced at a yield spread of 47 basis points over comparable swaps, while the 20-year green bond was priced at 95 basis points.
This successful bond sale comes as the EU explores ways to enhance the liquidity and accessibility of its debt market. The recent announcement by Intercontinental Exchange (ICE) to launch a new futures contract for EU bonds is expected to further boost the market’s attractiveness.
The strong demand for the EU’s bonds reflects investor confidence in the region’s economic outlook and its commitment to sustainable finance.
Attribution: European Commission
