NextGenerationEU: European Commission successfully raises €5 billion in first EU-Bills auction

The European Commission has issued €5 billion in short-term securities through its first auction of EU-Bills today. As announced on 10 September 2021, the Commission issued €3 billion of 3-month securities due on 3 December 2021 and €2 billion of 6-month securities due on 4 March 2022. Commissioner in charge of the Budget and Administration, Johannes Hahn, said: “The first EU-Bill auction represents another landmark moment for the NGEU funding programme. With the possibility to issue EU-Bills each month, the Commission now has a cheap and efficient bridge financing solution at its disposal. The success of today’s issuance confirms market interest in this brand-new short-term paper. The EU-Bill programme will attract yet more investors to EU capital markets and boost the international role of the euro.” The EU-Bills were placed with members of the EU Primary Dealer Network. The auction has taken place via the TELSAT auction platform of Banque de France, which the Commission decided to use for its auctions in May 2021. Following the auction, the EU-Bills will be listed on the Luxembourg Stock Exchange for secondary trading. This is the first time the Commission issues short-term securities, to complement its bond issuances. EU-Bills are one of the key pillars of the European Commission’s diversified funding strategy. They provide additional flexibility, which will be very valuable in raising NextGenerationEU funding quickly and on advantageous terms. This is also the first auction that the European Commission is conducting on behalf of the EU as part of its new auction calendar. More information and the auction calendar are available here. The detailed results from today’s auction are here.