European Union’s first NextGenerationEU bond listed on Luxembourg Stock Exchange

The Luxembourg Stock Exchange (LuxSE) yesterday marked the listing of the first bond issued by the European Commission under NextGenerationEU. The €20 billion ten-year bond is the largest single tranche bond transaction ever issued by the European Union. Commissioner Hahn, responsible for Budget and Administration, commented: “The strong appetite from global investors shows that the NGEU issuances will establish the EU as a key player on the debt capital markets – issuing liquid, highly rated debt of interest to both domestic and international investors. Our issuances will also strengthen the international role of the euro. These good initial results are a vote of confidence in the EU as an issuer and in the EU’s capacity to deliver for the sake of its citizens, even in an unprecedented crisis such as the current pandemic. NGEU is money not only to repair, but also to transform!” The bond attracted a significant interest from investors and was 7 times oversubscribed, with demands exceeding €142 billion. 87% of the deal was distributed to European investors, with 10% reaching Asian investors and the remaining 3% going to investors from the Americas. In October last year, the European Commission and LuxSE celebrated the listing of the first bond issuance under the EU SURE programme, which was the first social bond ever issued by the European Commission. The European Commission listed its first bond on LuxSE in 1983 and has brought 107 bonds totalling €206 billion to the exchange since then, with 48 of these bonds still active. More information is available in this joint press release.