[ad_1]
Brussels places 12,000 million in bonds to five and thirty years
Brussels, Sep 13 (.).- The European Commission (EC) has placed 12,000 million euros in a new syndicated issue within the framework of the recovery fund through two five-year and thirty-year bonds, as reported on Tuesday.
Investor demand reached 114,000 million euros, more than nine times the figure finally placed on the markets through the two bonds, whose maturities are October 4, 2027 and October 4, 2052, has reported the EC in a statement.
The five-year security has a coupon of 2% and a yield of 2.095% in the secondary market, which is 29 basis points compared to the mid-swap, that is, 60.1 basis points above the German bond with the same maturity and 35.4 basis points higher than the equivalent French bond.
For its part, the thirty-year bond has a coupon of 2.5% and a secondary market yield of 2.583%, which is 45 basis points more than the mid-swap, 83.5 points above the German bond at thirty years and 1.5 points below the French bond with that maturity.
The entities that were in charge of managing the syndicated issue – the seventh this year and the twelfth since the beginning of the issues for the recovery fund – were BNP Paribas (EPA:), Citi, Commerzbank (ETR:), Goldman Sachs (NYSE:) and Nomura.
“The funds raised today will continue to support Europe’s recovery from the pandemic and are much needed for the green and digital transformations,” Budget Commissioner Johannes Hahn stressed in the note.
With this Tuesday’s transaction, the European Commission has already raised 73,750 million euros in long-term financing under the program Next (LON:) Generation EU in 2022 alone, and 144.75 billion since the first debt issue in June 2021.
Of this amount, 110,000 million have already been transferred to the Member States in the form of direct aid or credits within the framework of the recovery fund and another 15,000 million have been used to reinforce the budget of programs such as the Cohesion Policy or the Agricultural Policy Common (cap).
(More information on the European Union at euroefe.euractiv.es)
[ad_2]