As part of its EU SURE program for the protection of jobs and workers and mitigating the extremely negative socio-economic consequences of the coronavirus pandemic, the European Commission has issued one tranche of 9 billion euros maturing in June 2036. in 2021. The bonds attracted great interest from investors, which again allowed the Commission to achieve very favorable price terms that are directly transferred to the Member States of the Union.
Budget and Administration Commissioner Johannes Hahn said: The fifth issue of EU SURE bonds is another confirmation that the Union is a successful large bond issuer and borrower. It is also a sign of confidence that the fundraising for the NextGenerationEU instrument will be successful. Issuing safe and sustainable bonds under the SURE and NextGenerationEU instruments is the backbone of our efforts to support the EU's recovery and continue to help businesses and citizens.
The subscription of this 15-year bond exceeded the offer by almost 10 times. A yield of 0.228% has been set for the bond, and these favorable conditions are transferred directly to the beneficiary Member States. The strong interest in this new 15-year bond shows how great the support of various investors is to the Commission as a borrower. This achievement has been achieved in the context of recent volatility in capital markets and rising global interest rates.
This is the fifth issue of bonds under the EU SURE program. Based on the first four bond issues, 15 Member States of the Union have so far received interchangeable loans of almost € 53.5 billion under the SURE instrument. Following today's transaction, 16 Member States will receive a total of € 62.5 billion under the SURE instrument.
The Commission will seek to raise an additional 25 billion euros by issuing EU SURE bonds in 2021.
During the year, the Commission should also launch borrowing under the NextGenerationEU recovery instrument, worth € 750 billion (in 2018 prices) or around € 800 billion in current prices, to contribute to building a greener, more digital and resilient Europe.