Consisting of two bonds, with €10 billion due for repayment in October 2030 and €7 billion due for repayment in 2040, investor interest in the instrument was strong, with the bonds more than 13 times oversubscribed, according to the Commission.

“The strong investor interest and the favourable conditions under which the bond was placed are further proof of the great interest in EU bonds,” said European Commissioner Johannes Hahn in charge of budget and administration. “The ‘social bond’ character of the issuance has helped to attract investors who wish to help EU Member States in supporting employment through these difficult times.”

Both bonds were issued on attractive terms--the 10-year bond was priced at 3 basis points above mid-swaps. The 20-year bond was priced at 14 basis points over mid-swaps. The final new issue premiums have been estimated at 1 bps and 2 bps for the 10-year and 20-year tranches respectively, both values being extremely limited given the amounts printed.

These loans will help member states to cover the costs directly related to the financing of national short-time work schemes, and other measures related to the pandemic, in particular for the self-employed. They could also finance some health-related measures, in particular for workplaces to ensure a safe return to normal economic activity.

Support to mitigate Unemployment Risk in an Emergency, or SURE, was adopted by the Council on 19 May 2020

Of the total €100 billion in the Sure financial support package, the Commission has already proposed a total of €87.8 billion to 17 member states.

Banks supporting the European Commission with the transaction included Barclays (IRL), BNP Paribas, Deutsche Bank, Nomura and UniCredit.