Brussels: Europe and the Arabs
The European Commission raised €11 billion in EU bonds in its ninth joint round for 2025. According to a statement issued by the European Commission headquarters in Brussels, "This double round comprised a €5 billion EU bond issuance, maturing on December 13, 2032, and a new €6 billion issuance, maturing on December 12, 2040. The price of the 7-year bond was 99.114%, with a re-offering yield of 2.889%, while the price of the new 15-year bond was 99.518%, with a re-offering yield of 3.666%. The value of the offers received exceeded €96 billion for the 7-year bond and €79 billion for the new 15-year bond. This equates to oversubscription rates of approximately 19 times and 13 times, respectively.
The proceeds from this transaction will be used to finance EU policy programs, particularly within the framework of the Next Generation Europe program. NextGenerationEU and support for Ukraine.
7-Year Bond
This bond matures on December 13, 2032, with a coupon of 2.750% and a swap rate of 2.889%, equivalent to a price of 99.114%. The spread between the mid-swap and the interest rate is 34 basis points, equivalent to 42.2 basis points over the bond rate due on August 15, 2032, and -26.7 basis points below the interest rate on the long-term bond due on November 25, 2032.
Final orders totaled over €96 billion.
New 15-Year Bond
This bond matures on December 12, 2040, with a coupon of 3.625% and a swap rate of 3.666%, equivalent to a price of 99.518%. The spread between the mid-swap and the interest rate is 75 basis points, equivalent to This equates to 55.2 basis points above the Bund rate due on May 15, 2041, and -30.7 basis points below the long-term deposit rate due on May 25, 2040.
The total final order book amounted to over €79 billion.
The lead managers for this transaction were BNP, Citi, Deutsche Bank, DZ Bank, and Santander. Commerzbank, Danske, Intesa, KBC, Natixis, UBS, and UniCredit co-led the process.
The European Commission has so far issued €46.12 billion of its €70 billion financing target for the second half of 2025. A comprehensive overview of all EU transactions executed to date is available online. A detailed overview of planned EU transactions for the second half of 2025 is available in the EU Financing Plan. The next transaction in the indicative EU issuance schedule is the EU Bond Auction on October 15. 2025.
The European Union Treaties authorize the European Commission to borrow from international capital markets on behalf of the EU to finance its selected policy programs. The Commission enjoys a strong position in debt securities markets and has a proven track record of issuing bonds over the past 40 years. All issuances undertaken by the European Commission are denominated exclusively in euros. All EU loans are guaranteed by the EU budget, and contributions to the EU budget are an unconditional legal obligation for all Member States under the EU Treaties.
Since January 2023, the EU has been financing its various policy programs by issuing single-brand Eurobonds instead of separate branded bonds for each program. This follows the establishment of a unified financing approach, extending the diversified financing strategy first developed in 2021 for the NextGenerationEU program to include other policy programs funded by EU loans.
To finance EU policies as efficiently and effectively as possible, the Commission's issuances are structured around semi-annual financing plans and issuance periods. Previously announced. In parallel, a framework was put in place to incentivize primary market dealers in the EU to bid on its securities via electronic platforms starting November 2023, and a repo facility for EU primary market dealers was made available starting October 2024 to support secondary market liquidity by using EU bonds in repo agreements.
With today's transaction, the EU now has €544.31 billion outstanding in EU bonds under the Single Financing Approach. Of the combined proceeds, over €352.50 billion has been disbursed to Member States under the EU's Next Generation Recovery and Resilience Facility. An additional €75.39 billion has been allocated to other EU programs benefiting from Next Generation EU funding. In addition, approximately €19.25 billion has been disbursed to Ukraine under the Ukraine Facility, which will finance loans of up to €33 billion between 2024 and 2027. €14 billion has also recently been disbursed under a loan The EU's new exceptional macro-financial assistance of €18 billion will be repaid from the proceeds of frozen Russian state assets as part of the G7-led Extraordinary Revenue Acceleration (ERA) loan initiative.*
Total EU debt currently outstanding is approximately €722.44 billion, of which €32.85 billion is in the form of Eurobonds.
Under the Commission's single funding approach, the amounts pooled do not necessarily equal the amounts disbursed at a specific time.