EU raises another €15bn for Covid-recovery effort


Having dished out the first €800 million of its NextGenerationEU recovery fund to member state projects on Monday, the EU yesterday raised €15 billion by issuing two bonds, to follow up the initial €20 billion generated earlier this month.

The latest investments – a five-year, €9 billion bond and a 30-year, €6 billion instrument – were oversubscribed more than 11 times, the European Commission said yesterday on its website, with investors bidding to offer more than €171 billion worth of the loans.

pv magazine print edition

The latest edition of pv magazine is out! Pick up your copy today for a big look at the switch to large-format cells and modules. Coverage also includes TOPCon vs. HJT solar, co-location for green hydrogen production, price movements amid the polysilicon shortage, and the trends informing Southeast Asian PV growth.

The EU is conducting a near-€800 billion fundraising plan to borrow around €150 billion per year to the end of 2026 in order to offer €408 billion in grants and €386 billion in credit lines to member states attempting to rebuild their economies after the pandemic. EU nations must devote at least 37% of their planned ‘recovery and resilience' spending to green investment.

The commission said U.K. investors led demand for the five-year bond issued yesterday, accounting for 30% of the loans, with Asian funders signing up to lend the EU 18% of the total. That instrument received bids of more than €88 billion, ensuring it was oversubscribed almost 10 times, with the commission adding, fund managers made up 33% of the customers and central banks and other public institutions 30%.

Popular content

For the longer-term bond, German investors supplied 27% of the signatories to a product which was oversubscribed almost 14 times after receiving offers of more than €83 billion. Fund managers led demand for that one, signing up to offer more than 41% of the credit.

The commission said the EU plans to raise €80 billion this year, to be supplemented by an unspecified amount of short term bills, depending on its NextGenerationEU requirements.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: