European Commission in its second syndicated transaction in 2025, it issued EUR 11 billion of EU bonds, divided into EUR 6 billion for a 7-year bond (maturity December 2031) and EUR 5 billion for a 25-year green bond NextGenerationEU (due in February 2050).

EUR 11 billion raised: The European Commission has secured €11 billion through a two-tranche bond issue, including €5 billion under the **NextGenerationEU** green bonds.

Strong investor demand: The 7-year bond was oversubscribed 13 times and the 25-year green bond was oversubscribed 14 times, with total offerings exceeding €145 billion.

Investor appetite:

Demand was high, with bids exceeding €76 billion for the 7-year bond and €69 billion for the 25-year green bond. The re-bid yields were 2.654 % and 3.357 %.

Market details:

– 7-year bond: Price 99.049 %, with a 2.5 % coupon, with a spread of 37 bps over the mid-swap.

– 25-year green bond: Price 98.209 %, with a 3.25 % coupon, with a spread of 108 bps over mid-swap.

Joint lead managers: Citi, Deutsche Bank, HSBC, Morgan Stanley and Société Générale.

Looking ahead:

This issue will bring the Commission's total financing to EUR 26.5 billion, reaching its target of issuing EUR 90 billion in bonds for the first half of 2025. The next planned transaction is the auction of EU bank accounts on 19 February 2025. Spring