The European Commission, in its first operation under Next Generation EU, raised 20 billion euros through a 10-year bond maturing on 4 July 2031 to finance Europe’s recovery from the coronavirus crisis and its consequences. This is the largest institutional bond issue ever made in Europe, the largest institutional transaction in a single tranche ever made and the highest amount raised by the EU in a single transaction.
The bond has attracted strong interest from investors in Europe and around the world, which has enabled the Commission to achieve very favourable price conditions, within the framework of the SURE programme, as with subsequent issues with excellent results.
The funds will now be used for the first payments under Next Generation EU, the Resilience and Recovery Facility and various programmes financed from the EU budget.
By the end of 2021, the Commission plans to raise around 80 billion euros in bonds, to be complemented with short-term EU bonds, as provided for in the financing plan published in June 2021. The precise amount of EU bonds will depend on the specific financing needs, and the Commission will review the initial assessment in the autumn. The Commission will thus be able to finance, in the second half of the year, all the grants and loans provided for Member States under the Recovery and Resilience Facility, as well as meeting the needs of EU policies benefiting from Next Generation EU funding.