The European Commission successfully issues €5 billion in its 9th syndicated operation for 2023

The European Commission, which issues EU bonds on behalf of the EU, has raised an additional €5 billion in bonds in its 9th syndicated operation for 2023. The one-stop operation tranche consisted of the issue of a new seven-year bond maturing on 4 December, 2030. The market conditions behind the deal have been more contained as investors await clarification on further changes to European interest rates. However, the operation attracted strong interest from investors, who placed bids in excess of €46bn, representing an oversubscription rate of more than nine times and showing that the European Commission continues to benefit from strong access to the market.

The proceeds of this operation will be used to support both the NextGenerationEU recovery program and the macro-financial assistance+ program for Ukraine, in line with the Commission's approach of issuing "EU-Bonds" under a single brand rather than separate obligations for different programs. With today's operation, the Commission has achieved around 16% of its €40 billion financing target for the second half of 2023. A comprehensive overview of all EU transactions executed to date is available online.

A detailed overview of the EU's planned transactions for the second half of 2023 is also available in the EU financing plan. Budget and Administration Commissioner Johannes Hahn (pictured) said: “The EU financing program for the second half of 2023 is progressing smoothly with a successful new syndication. After securing a record oversubscription for our long-term deal in July, we achieved another important result on today's shorter-term deal. The transaction attracted particularly strong interest from international investors, underscoring the attractiveness of EU bonds and, more generally, euro debt capital markets."

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