Brussels: Europe and the Arabs
A statement issued in Brussels on Wednesday said that the European Commission yesterday raised 11 billion euros in EU bonds in its second joint deal in 2025, including 5 billion euros in the form of next-generation green bonds for the European Union.
According to the statement, the European Commission is authorized under the EU treaties to borrow from international capital markets on behalf of the European Union to finance selected EU policy programmes. It is a well-established name in the creditor securities markets, and has a track record of bond issuances over the past 40 years. All issuances carried out 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.
The two-tranche deal concerns the drawdown of €6 billion of EU bonds due on 4 December 2031, and the drawdown of €5 billion of NextGenerationEU green bonds due on 4 February 2050. The 7-year bond was priced at 99.049% with a re-offer yield of 2.654%, while the 25-year bond was priced at 98.209%, with a re-offer yield of 3.357%. Bids received exceeded €76 billion for the 7-year bond and exceeded €69 billion for the 25-year bond. This equates to oversubscription rates of approximately 13 times and 14 times respectively.

The proceeds from the deal will be used to finance EU policy programmes – in particular in the context of NextGenerationEU and support for Ukraine – as well as green projects in Member States’ national recovery and resilience plans. The European Commission has now issued around €26.50 billion of the €90 billion of bonds targeted for the first half of 2025. A full overview of all transactions carried out so far in the EU is available online. A detailed overview of planned EU transactions for the first half of 2025 is available in the EU Financing Plan. The next transaction in the EU indicative issuance calendar is the EU bond auction on 19 February 2025.