NextGenerationEU: European Commission Successfully Issues First Green Bond to Finance the Sustainable Recovery

The European Commission has today issued the world’s largest green bond ever raising €12.0bn through its NextGenerationEU Green Bond Programme to accelerate growth in sustainable finance markets, fund a greener EU recovery and demonstrate the EU’s commitment to sustainability. As the 5th syndicated transaction since the start of NextGenerationEU in June 2021, the final order book was over €135.0bn with the bond over 11x oversubscribed.

The 15-year bond features:

  • Coupon: 40bps
  • Re-offer Yield; 453bps
  • Spread to Mid-Swaps: -8bps
  • Spread over 15yr Bund due May 2036: 31.6bps
  • Spread to 15-year OAT due May 2036: -46.bps

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