The European Commission scored another success with the fourth syndicated issue to finance the recovery fund. This time he got 9,000 million euros with seven-year bonds. Demand once again greatly exceeded supply, as investors requested up to 103,000 million euros, 11 times more than the proposal of the Community Executive. As reported by the Commission in a note, it was the largest demand received for community bonds with a maturity of less than 10 years to date.
Strong demand allowed the Commission to place the bonds at very favorable prices, in line with the remarkable performance of the € 800 billion recovery fund, called NextGenerationEU .
“This transaction enables the Commission to maintain a constant flow of funding to our Member States, to support the recovery and help rebuild a greener, more digital and more resilient Europe,” Budget Commissioner Johannes Hahn said in the statement. .
Again it was a syndicated operation, in which the banks Goldman Sachs, Landesbank Baden-Württemberg, Morgan Stanley, NatWest and Société Générale participated.
So far, the Commission has raised about 54,000 million euros in the four operations, while it has disbursed about 52,000 million euros to finance national plans, including 9,000 million for Spain.
The Commission expects to raise this year about 80,000 million euros in bonds, which will be supplemented with short-term bills when it needs liquidity for payments to capitals to finance its recovery plans. These letters will be placed only through auctions, the first of which is scheduled for today.
The Community Executive will also carry out two additional syndicated operations this year, in October and November. In addition, the institution plans to carry out the first green bond issue next month. In total, the Community Executive expects to finance up to 30% of the recovery fund (or about 250,000 million euros) with green bonds, which will make the EU the largest issuer of this type of debt in the world.