©Reuters. Brussels places 9,000 million in syndicated bonds at 3 and 30 years
Brussels, May 11 (.).- The European Commission raised 9,000 million euros on Wednesday through two debt issues with 3 and 30-year bonds, respectively, in the fourth syndicated operation so far this year and the ninth from the beginning of the placements in the framework of the recovery fund, according to the institution in a statement.
Specifically, the Community Executive placed 6,000 million euros through a bond maturing on July 4, 2025 and another 3,000 million with a bond whose maturity is set for July 6, 2051, attracting with both transactions a “strong interest “by investors.
Thus, the demand for the three-year bond was 56,000 million (nine times more than the amount raised), while that of the 30-year bond reached 48,000 million, a figure 16 times greater than the financing obtained.
The three-year bond has a coupon of 0.8% and a yield of 0.820% in the secondary market, which means a negative premium of 41 basis points compared to the mid-swap, 43.6 basis points above of the German bond with the same maturity and 24.7 points more than the French one.
For its part, the coupon of the 30-year bond is 0.7% and has a secondary market yield of 1.835%, which is 22 basis points above the mid-swap, 70.9 points above the bond German at 30 years and 8.2 points below the French with the same maturity.
The entities that participated as agents in the syndicated transaction were BNP Paribas (EPA:), Goldman Sachs (NYSE:) Bank Europe, NatWest Markets, Nordea (ST:) and UniCredit (BIT:).
Brussels stressed that with this operation it has already issued debt with “the entire spectrum” of long-term maturities that it had planned, which ranges between 3 and 30 years.
“The smooth execution of today’s deal is further proof of the EU’s strength as an issuer (of debt) even in volatile markets,” said Commissioner for Budget and Administration Johannes Hahn.
With this Wednesday’s operation, the European Commission has already obtained 111,000 million in the debt markets to finance the post-pandemic recovery plan, of which 23,000 million are from the so-called ‘green’ bonds.
Since the beginning of the year, Brussels has raised 40,000 million euros, which represents 80% of the objective that had been set during the first months of the year (50,000 million).
(More information on the European Union at euroefe.euractiv.es)