The European Commission today allocated an additional € 9 billion under the NextGenerationEU Recovery Fund.
This is the 9th joint venture under NextGenerationEU and the 4th in 2022. It consisted of a new three-year bond of € 6 billion, maturing on July 4, 2025 and € 3 billion of an existing 30-year bond maturing on July 6, 2051. This is the first 3-year bond issued by the Commission in the context of its diversified financing strategy. With its sale, the Commission has now introduced its issues across the full range of long-term bonds (3 to 30 years).
The trades attracted a lot of interest from investors. The 30-year bond has been covered more than 16 times with bids exceeding 48 billion euros, which is the largest registration to date under the NextGenerationEU.
The Commission will continue to use the funds raised to support Europe ‘s recovery and resilience, funding Member States under the Recovery and Resilience Mechanism (RRF), as well as other programs.
Budget Commissioner Johannes Hahn said: “The smooth implementation of today ‘s agreement is further proof of the EU’ s power as a issuer, even in volatile markets. “The funds raised continue to serve EU citizens, businesses and communities, supporting Europe ‘s recovery and resilience.”
Under the current agreement, the Commission has so far disbursed € 111 billion in long-term financing under the NextGenerationEU program, of which € 23 billion in NextGenerationEU green bonds. The Commission has raised € 40 billion under the NextGenerationEU since January 2022, or 80% of the € 50 billion funding target for the program for the first six months of the year.
NextGenerationEU is an interim instrument of up to € 800 billion to support Europe recovering from the coronavirus pandemic and building a greener, more digital and more resilient Europe. To fund NextGenerationEU, the Commission will borrow up to around € 800 billion at current prices in the capital markets by the end of 2026. Of that total, up to € 723.8 billion will be allocated under the Recovery and Sustainability Mechanism. An additional € 83.1 billion will support key EU programs.