EU Raises €11 Billion in First Bond Sale of 2025 to Fund Key Programs
January 15, 2025 — The European Commission successfully raised €11 billion in its first bond issuance of 2025. This marks a strong start towards their €90 billion bond issuance target for the first half of the year.
The transaction consisted of two parts:
- A new €6 billion bond maturing in July 2028, priced at 2.628%.
- A €5 billion tap of an existing bond maturing in October 2054, priced at 3.664%.
Both offerings were met with overwhelming investor demand, with bids exceeding €82 billion for the shorter bond and a staggering €115 billion for the longer-term one. This translates to oversubscription rates of 14 and 23 times, respectively.
The proceeds from this bond sale will be used to finance various EU policy programs, including:
- NextGenerationEU: A €750 billion economic recovery plan launched in response to the COVID-19 pandemic.
- Support for Ukraine: Providing critical financial assistance to Ukraine.
This issuance builds upon the EU's unified funding approach established in 2023, where all borrowing is consolidated under the single "EU-Bond" label. This strategy aims to enhance efficiency and transparency in financing EU programs.
Key Takeaways:- €11 billion raised in the first EU bond sale of 2025.
- Strong investor demand with oversubscription for both offerings.
- Funds will support NextGenerationEU and Ukraine.
- Unified funding approach ensures transparency and efficiency.
- The next EU bond auction is scheduled for January 27th, 2025.
- A full overview of EU bond transactions is available online.
- The EU's total outstanding debt now stands at €611.09 billion.