The European Commission has today raised a further €6 billion in NextGenerationEU funds with its second NextGenerationEU green bond syndication. Due on 04 February 2043, this 20-year bond brings the total long-term financing raised under NextGenerationEU to €99.5 billion, of which €20.5 billion in NextGenerationEU green bonds.

This bond issue was more than 13 times covered by investor orders and represents the largest green bond issued in 2022 to date. The size and quality of the order book confirm investor confidence in the EU's green bond programme. 

Proceeds raised from the deal will boost Europe's green transformation by financing sustainable investments in the Member States' Recovery and Resilience Plans. The syndication follows on from the Commission's record-breaking €12 billion, 15-year green bond transaction in October 2021, and its €2.5 billion tap in February 2022.

Reacting to the deal, Commissioner in charge of Budget and Administration, Johannes Hahn said: “Today's issuance adds further momentum to the NextGenerationEU green bond programme. By supporting green investments under the Recovery and Resilience Facility, the funds raised will contribute to a more sustainable and more resilient Europe. The strong response to this issuance shows the value that our investors place in our Green Bond programme and the EU's sustainability credentials.”

The Commission intends to raise up to 30% of all NextGenerationEU issuances in the form of NextGenerationEU green bonds. All green bonds will be issued under the ICMA compliant NextGenerationEU green bond framework. In addition to providing direct support to projects at the heart of Europe's green transition, NextGenerationEU green bonds strengthen the role of the euro in the market for sustainable investments and confirm the European Commission's commitment to sustainable finance.

In a further expression of its commitment to sustainability, the Commission launched at the end of March the NextGenerationEU Green Bond Dashboard, a tool to increase the transparency of the measures financed by NextGenerationEU green bonds. The dashboard gives real time, easily digestible information on how EU Member States are investing the proceeds raised by green bond issuances. It further explains the extensive due diligence process the Commission put in place to ensure that NextGenerationEU green bonds are exclusively allocated to Recovery and Resilience Plan measures which contribute to the green transition.

Today's deal is the 8th syndicated transaction the Commission has executed under NextGenerationEU. Out of the €99.5 billion in long-term funding raised under the programme so far, €28.5* billion have been raised since January 2022. This represents 57% of the €50 billion NextGenerationEU funding target for the first half of 2022.

As laid out in its issuance calendar for the first half of the year, the Commission intends to execute two further syndicated transactions under NextGenerationEU by June 2022. Syndicated transactions will be complemented by further EU-bond auctions. Short-term funding will also continue to be raised in two EU-bills auctions per month, giving the Commission additional flexibility to meet its payment needs.

Read more here: https://ec.europa.eu/commission/presscorner/detail/en/ip_22_2271

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