EU raises 20b euros in 10-yr bond

BRUSSELS, June 17, (AP): The European Commission said on Tuesday it has raised €20 billion ($24.2 billion) through a 10-year bond as part of its plans to finance the 27-nation bloc’s recovery from the coronavirus crisis.

EU Commission president Ursula von der Leyen said the inaugural transaction of the NextGeneration EU program is the largest ever institutional bond issuance in Europe. The money will help finance the national recovery plans devised by member states to get their economies back on track.

Von der Leyen said the bond was priced at “very attractive terms” and that the European Union will pay less than 0.1% interest on it.

“Europe is attractive,” she said. “By the end of this year, we expect to have issued around 100 billion in bonds and bills.”

The commissioner in charge of Budget and Administration, Johannes Hahn, said the recovery plan’s first borrowing operation attracted interest from investors across Europe and the rest of the world, including central banks and pension funds.