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© Reuters. Brussels raises 6,000 million euros in eleven-year bonds
Brussels, March 7 (.).- The European Commission (EC) obtained this Tuesday 6,000 million euros in an eleven-year bond issue that will serve to finance the post-covid recovery fund of the European Union (EU) and macro-financial assistance to Ukraine.
The syndicated operation, the third so far this year, registered a demand nine times higher than the offer, of 54,000 million euros in total, according to the Community Executive in a statement.
The securities, maturing in 2034 and a coupon of 3.25%, were placed at a repurchase rate of 3.359%, which is 13 basis points above the midswap and 67.7 basis points more than the German bond -considered the safest in the euro area – at the same term.
Most of the issue was placed among investors in the United Kingdom (28.9%), France (13.7%), Germany (10%), the Nordic countries (9.6%) and Italy (9.4% ), especially fund managers (37.9%), according to the data provided by the Commission.
Commerzbank (ETR:), Goldman Sachs (NYSE:) Bank Europe, HSBC Continental (ETR:) Europe, Morgan Stanley (NYSE:) Europe y General Society (EPA:) acted as lead banks in the transaction.
“We are pleased to have completed another successful transaction amid volatile market conditions,” said European Budget Commissioner Johannes Hahn in a statement.
With this transaction, the Commission has already raised 30,000 million euros in the markets so far this year, close to 40% of its financing objective of 80,000 million for the first half of the year.
Of this financing, most (70,000 million) will go to the recovery fund, which will mobilize some 800,000 million between 2021 and 2026; while the remaining 10,000 million will serve to provide help to Ukraine to cover its most urgent financial needs, within the package of 18,000 million that the EU has agreed to disburse in 2023 for this purpose.
(More information about the European Union at euroefe.euractiv.es)
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