The European Commission with a press release dated 16 June 2021 informs that in its first operation in the context of NextGenerationEU, in order to finance Europe’s recovery from the coronavirus crisis and its aftermath has picked up 20 billion euros through a 10-year bond maturing on July 4, 2031.
This is the major issue of institutional bonds in Europe, the largest single-tranche institutional transaction ever carried out and the largest amount raised by the EU in a single transaction.
The bond has been such a success as it has aroused strong interest from investors in Europe and around the world, allowing the Commission to obtain very favorable pricing conditions, similar to previous issues under the SURE program.
Ursula von der Leyen, President of the European Commission, declared that “Today is truly a historic day for the European Union. We have successfully conducted the first financing operation for NextGenerationEU. As a strong Union, we are raising funds in the markets together and investing in a common recovery from this crisis. It is an investment in our single market and, more importantly, an investment in the future of the next generations of Europe, who face the challenges of digitalisation and climate change. Funds can now begin to flow to help redefine our continent so that we can build a greener, more digital and more resilient Europe. I will now visit each Member State to observe the impact of NextGenerationEU on the ground. “
Johannes Hahn, Commissioner for Budget and Administration, said that “Today a milestone has been set in the implementation of NextGenerationEU. Having laid all the foundations in record time, we have today successfully conducted the first borrowing operation in the ‘scope of the recovery plan. It is only the first step in a long journey, which will bring over € 800 billion in current prices to the EU economy. NextGenerationEU is now a reality and is set to guide our collective recovery from pandemic, leading Europe towards a green, digital and resilient future. “
The funds will be used for first payments under NextGenerationEU, the Recovery and Resilience Facility and various EU budget programs.
The Commission expects, by the end of 2021, to collect around 80 billion euros of bonds, to be supplemented with short-term EU bonds, as required by the financing plan published in June 2021.
The precise amount of EU bonds and EU bonds will depend on specific funding needs, and the Commission will review the initial assessment in the autumn. The Commission will thus be able to finance, in the second half of the year, all grants and loans provided to Member States under the Recovery and Resilience Facility, as well as meeting the needs of EU policies. benefiting from funding from NextGenerationEU.
By the editorial staff