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• In the context of the Covid-19 crisis, the Council has adopted on 19
May 2020 the SURE regulation (“Support to mitigate Unemployment
Risks in an Emergency”).
• The Council has approved EUR 90.3 billion in loans to 18 Member
States with a maximum average maturity of 15 years.
• The proposed loans will assist Member States to cope with sudden
increases in public expenditure to preserve employment.
• All Member States are eligible. Further loan amounts can be allocated
up to the maximum ceiling of EUR 100 billion.
• The Commission issues bonds on behalf of the European Union and
on-lends the funds based on individual loan agreements concluded
with the beneficiary member states (back-to-back lending).
SURE (1)New EU loan programme with a ceiling of EUR 100 billion
EU-27 map (without certain territories),for illustrational purposes only, source: EC
2
• The EU has established an ICMA-compliant social bond framework for bond issuances under the SURE
programme.
• Newly issued bonds enjoy the same status as those issued in the past.
• EU bonds are and will remain direct and unconditional obligations of the EU. For the SURE instrument,
the EU member states have provided additional guarantees of EUR 25 billion to protect the budget.
• Funding operations for the SURE instrument are carried out following the signature of individual loan
agreements with Member States – the first funding transaction, a 10y/20y dual tranche totalling EUR 17
billion, has taken place on 20 October 2020.
• Total issued amount in 2020: EUR 39.5 billion with maturities of 5, 10, 15, 20 and 30 years.
• Total issued amount in 2021 so far: EUR 14 billion (dual tranche 7y + 30y tap).
SURE (2)New EU loan programme with a ceiling of EUR 100 billion
3
SURE (3)
€7,800
Belgium
€2,000
Czechia
€602
Lithuania
€4,000
Romania
€511
Bulgaria
€2,700
Greece
€244
Malta
€631
Slovakia
€1,000
Croatia
€479
Cyprus
€2,500
Ireland
€11,200
Poland
€1,100
Slovenia
€5,900
Portugal
€21,300
Spain
All amounts are in €million
€504
Hungary
Approved financial support of €90.3 billion to 18 Member States*
4
€192
Latvia€27,400
Italy
SURE (4)SURE transaction #1 – 10y/20y dual tranche issued on 20/10/2020
• The EU‘s inaugural SURE
issuance was priced on
20/10/2020 and met very
high demand from
investors (combined order
book above €230bn).
• It was the EU‘s first „dual
tranche“ issue, offering
simultaneously two tenors.
• The first SURE proceeds
were disbursed on
27/10/2020, five business
days after the transaction.
5
SURE (5)SURE transaction #2 – 5y/30y dual tranche issued on 10/11/2020
• The EU‘s second SURE
issuance came on
10/11/2020, swiftly after
the programme‘s debut
transaction.
• Again very high demand
from investors (combined
order book above €175bn).
• The SURE proceeds were
disbursed on 17/11/2020 to
nine beneficiary member
states.
6
SURE (6)SURE transaction #3 – 15y single tranche issued on 24/11/2020
• The EU‘s third SURE
issuance came on
24/11/2020, exactly two
weeks after SURE #2.
• Again very high demand
from investors (order book
above €114bn).
• The proceeds of SURE #3
were disbursed on
1/12/2020 to five countries.
• This bond concluded
SURE issuance for 2020.
7
Source: Bloomberg
Note: EU 11/2050 issued in 17/11 was tapped on 26/1/2021 by EUR 4 billion (issue date: 2/2/2021).
8
SURE bonds – total: EUR 53.5bn
ISIN maturity Issue Date Maturity
Outstanding amount
(€ million) Coupon
EU000A284451 5y 17/11/2020 04/11/2025 8.000 0%
EU000A287074 long 7y 02/02/2021 02/06/2028 10.000 0%
EU000A283859 10y 27/10/2020 04/10/2030 10.000 0%
EU000A285VM2 short 15y 01/12/2020 04/07/2035 8.500 0%
EU000A283867 20y 27/10/2020 04/10/2040 7.000 0,10%
EU000A284469 30y 17/11/2020 04/11/2050 10.000 0,30%
total: 53.500
“Support to mitigate Unemployment Risks in an Emergency” (SURE) – see slides 2-8.
European Financial Stabilisation Mechanism (EFSM):
Established in 2010. In principle all EU Member States can receive support, up to an agreed limit of EUR 60 billion, of which EUR 13.2
billion are available (EUR 46.8 billion disbursed to Ireland and Portugal between 2011 and 2014). The EFSM continues to be active as
loans with maturities up to 2026 can be extended, up to an average maturity of 19.5 years.
The Balance of Payments (BoP) programme provides support up to EUR 50 billion to non-euro-area Member States. Nocurrent programme. EUR 200 million (Latvia) are still outstanding*.
Macro-Financial Assistance (MFA)
is a financial aid programme to assist non-EU countries. EUR 5.79 billion are currently outstanding*.
*as of 15/01/2021
The European Commission, on behalf of the EU, operates four loan programmes, which are funded
in the capital markets:
Funding framework
9
“Support to mitigate Unemployment Risks in an Emergency” (SURE):
Up to EUR 45 billion in Q1 and Q2, of which 31 billion remaining
• EUR 39.5 billion have been borrowed under SURE in 2020 with 5y, 10y, 15y, 20y and 30y maturities.
• EUR 14 billion funded on 26 January 2021 (7y + 30y dual-tranche)
• Expected further SURE issuance in Q1: up to €20bn
• It is expected that the current SURE programmes will be concluded to a large extent by mid-2021.
European Financial Stabilisation Mechanism (EFSM): EUR 9.75 billion in Q2/2021
Maturity lengthening operations for Portugal and Ireland are expected for 2021 with loans coming due in June (EUR 4.75 billion) and
September (EUR 5 billion). The roll-overs will be funded several weeks ahead of the due dates.
Macro-Financial Assistance (MFA): EUR 2.35 billion in 2021
• For ten different third countries, the Council and the EP have adopted a EUR 3 billion “Covid-19” MFA package, to be disbursed in
several tranches and on top of “regular” MFA programmes.
• EUR 1,155 million have been raised in 2020 through a private placement and two syndicated taps on EU 6/2035.
EU Funding Plan 2021Up to EUR 57 billion in 2021, of which 43 billion remaining: up to €20bn in Q1, €20-25bn in Q2, plus MFA
10 This funding plan only includes existing programmes.
• On 10 December 2019, the European Commission, acting on behalf of the issuers European Union (EU) and
European Atomic Energy Community (EURATOM), signed and released a new Debt Issuance Programme (DIP)
which is governed by Luxembourg law.
• Following the United Kingdom’s decision to exit the European Union, a new programme was commissioned to align
its jurisdiction to that of an EU Member State. Credit Agricole CIB acts as arranger.
• Debut issuance of this new programme (EU 6/2035, nominal amount: EUR 500 million) happened on 3 June 2020.
• In principle all EU/Euratom bonds are listed at the Luxembourg Stock Exchange. The Offering Circular (Base
Prospectus) and further related information can be found at the Exchange’s website:
https://www.bourse.lu/issuer/UE/24055
https://www.bourse.lu/issuer/Euratom/24057
• The former EMTN programme for EU/Euratom (governed by English law and last updated on 12 March 2015)
remains in place.
New Debt Issuance Programme
11
Characteristics of EU funding in general
Funds raised
are so far
entirely lent
back-to-back to
the beneficiary
country
All bonds are
issued with an
“EU” ISIN
number
All bonds are
issued under
the EU’s Legal
Entity
Identifier (LEI)
529900FZRK8
FGMPEOM08
Funding
exclusively
denominated
in euro
Maturities:
3 - 30 years
Syndicated
bond issues
(or private
placements),
usually under the
Luxembourg law
Debt Issuance
Programme
12
EUR 3 billion “COVID-19” MFA package
13
• The €3bn MFA “Covid” package is
on top of existing MFA programmes.
• First funding transaction for this
“Covid 19” MFA package on
29/9/2020 (€160 million private
placement) to finance disbursements
to three countries: Kosovo,
Montenegro and North Macedonia.
• Second transaction (€395 million tap
on EU 6/2035) in November for
Jordan, Georgia and Moldova.
• Third disbursement (€600 million for
Ukraine) in December 2020.
• €2.35 billion are remaining under
current MFA programmes.
13
• Ireland and Portugal have the option to lengthen the maturity of their EFSM loans up to a weighted average maturity
of 19.5 years (2013 Eurogroup/Ecofin decision).
• All loans/bonds with maturities up to 2026 may be refinanced prior to their redemption date. The back-to-back
principle between EU borrowing and lending operations will be fully maintained. The next eligible loans are maturing
in 2021.
• For Ireland, EUR 3.9 billion were re-financed in 2018, following the first refinancing operations of 2015 (EUR 5
billion). The average maturity of Ireland's EFSM loans is currently 17.1 years.
• For Portugal, an amount of EUR 600 million was re-financed in 2018, following the first refinancing operations of
2016 (EUR 4.75 billion). The average maturity of Portugal's EFSM loans is currently 15.3 years.
14
EFSM financial assistance packages
Ireland€ 22.5 bn1
Portugal€ 24.3 bn2
1 The Irish loan programme comprised € 67.5 billion in total
including EFSF, IMF and bilateral loans.
2 The loans disbursed to Portugal amounted to € 76.3 billion in total
including EFSF and IMF loans.
14
European Union – Ratings (1)
Agency Rating Rating agency comments
AAA /
Outlook
stable
On 25 February 2020, Fitch affirmed the EU's AAA long-term rating with stable outlook.
As supranational administrative bodies, the EU's and Euratom's 'AAA' ratings are ultimately based on the capacity
and propensity of 'AAA'-rated EU member states to provide extra funding to the EU, above their initial budget
contributions, if needed to repay debt.
In addition to lending, the EU has provided an increasing amount of guarantees in recent years. In Fitch's view, the
financial risk that these guarantees represent for the EU is largely mitigated by a prudent framework of guarantee
funds that should be sufficient to cover future calls on these guarantees given the likely staggered scheduling of
claim payments.
Aaa /
Outlook
stable
On 18 September 2020, Moody's affirmed the EU's Aaa long-term rating with stable outlook.
The decision to affirm the Aaa rating reflects the following key rating factors:
The very high commitment of EU members to ensuring the continued soundness of the EU's finances and their very
high capacity to do so given the significant credit strength of the EU’s most highly rated members;
The multiple layers of debt service protection, including explicit recourse to extraordinary support which, in Moody’s
view, creates the equivalent of a joint and several undertaking and obligation on the part of EU member states to
provide financial support to the EU.
AA /
Outlook
positive
On 31 July 2020, S&P revised the outlook on EU’s AA long-term rating to positive and affirmed the rating.
S&P sees the decisions on the Multiannual Financial Framework and the joint recovery fund as a sign of the EU's
strengthened policy importance, which is one of the rating agency’s key rating factors for supranational entities.
The long-term rating on the EU relies on the capacity and willingness of the 11 wealthiest EU members (including
the U.K., which is required to contribute to the EU budget until the end of the 2014-2020 MFF) that are net
contributors to the EU budget.
15
European Union – Ratings (2)
Agency Rating Rating agency comments
AAA* /
Outlook
stable
On 25 September 2020, DBRS Morningstar confirmed its unsolicited long-term rating of the EU at AAA stable.
DBRS Morningstar rates the EU at AAA primarily based on its Support Assessment. This is underpinned by the
creditworthiness of its core member states and their strong, continued political commitment to support the EU’s
obligations, which provide the institution with multiple sources of support.
At the same time, the EU’s conservative budgetary management is expected to remain sound. Multiple
arrangements that protect creditors remain in place as well as the institution’s de facto preferred creditor status.
The Stable trend reflects DBRS Morningstar’s view that the EU’s recent decision strengthen Member State’s
commitment to the Union and compensate for the risks arising from the large increase in EU debt expected in the
next few years.
AAA* /
Outlook
stable
On 30 October 2020, Scope confirmed its unsolicited long-term rating of the EU at AAA stable, based on the following
key credit strengths:
Highly-rated shareholders,
Strong institutional setup providing de facto joint and several support, debt service priority and budget
flexibility, and
High liquidity buffers.
The Stable Outlook reflects our assessment of the EU’s high buffers for withstanding shocks.
Credit weaknesses taken into account comprise a significant increase in debt, crisis-country exposure, high
shareholder concentration and high guarantees to EIB operations.
* unsolicited
16
• EU borrowings are direct and unconditional obligations of the EU. The EU is legally bound by the Treaty on the
Functioning of the EU (Article 323) to service the EU debt.
• The EU’s debt service is ensured based on multiple layers of debt-service protection. In principle, the EU pays its
own debt with the loan redemption payments received from the loan beneficiaries (back-to-back lending). EU loan
beneficiaries have always serviced their debt.
• In the unlikely event of non-payment of a loan beneficiary, the EU budget guarantees that the EU timely honours its
obligations. To this end, the Commission can make available its cash buffer, re-prioritise budgetary expenditure and,
if needed, draw additional resources from Member States.
• The budgetary margin (difference between own-resources annual ceiling of the multi-annual financial framework
(MFF) and the actual payment appropriations of the EU budget) serves as protection to investors by providing
coverage against unexpected payment obligations. For the SURE programme, Member States provide additional
guarantees of EUR 25 billion.
• EU borrowing has traditionally been used to finance loans to countries – both EU Member States and third countries
eligible for MFA assistance. Subject to European Council agreement on the Recovery Plan (July 2020), the
Commission will be exceptionally empowered to borrow to fund crisis-repair and recovery actions through the Next
Generation EU programme once this agreement has been ratified by the European and national Parliaments.
European Union – Credit strengths
17
8,0
10 10
8,5
7
10
5,0
2,72,0
2,6
2,4
4,03,0
2,3
1,42,25
3,02,1
2,0
1,01,8
3,0
0,6
0,92
0,910,52
1,93
4,75
1,5
0
1
2
3
4
5
6
7
8
9
10
11
12
13€ billion per calendar year
SURE EFSM MFA
EU outstanding amounts of benchmark bonds
1818
Interpolated yield curve of EUversus Germany and France
Source: Bloomberg, 29 January 202119
-0,8
-0,6
-0,4
-0,2
0,0
0,2
0,4
0,6
Jan-21 Sep-23 Jun-26 Mar-29 Dec-31 Sep-34 Jun-37 Mar-40 Nov-42 Aug-45 May-48 Feb-51 FR
DE
EU
Yields of EU, Germany and France
Interpolated yield curve of EUversus KfW and ESM
Source: Bloomberg, 29 January 202120
-0,7
-0,6
-0,5
-0,4
-0,3
-0,2
-0,1
0,0
0,1
0,2
Jan-21 Sep-23 Jun-26 Mar-29 Dec-31 Sep-34 Jun-37 Mar-40 Nov-42 Aug-45 May-48 Feb-51
ESM
KfW
EU
Yields of EU, KfW and ESM
EU and peers - 5 year spread to Germany
Source: Bloomberg, 29 January 202121
+0,0
+10,0
+20,0
+30,0
+40,0
+50,0
+60,0
+70,0
Spread to Germany5y bonds
EU 09/2026 EFSF 05/2026 EIB 10/2026 ESM 03/2026 FRTR 11/2026 KFW 09/2026
EU and peers - 10 year spread to Germany
Source: Bloomberg, 29 January 202122
+0
+10
+20
+30
+40
+50
+60
+70
+80Spread to Germany
10y bonds
EU 04/2031 EFSF 03/2032 EIB 03/2031 ESM 05/2032 FRTR 05/2031 KFW 09/2032
EU and peers - 15 year spread to Germany
Source: Bloomberg, 29 January 202123
+0
+10
+20
+30
+40
+50
+60
+70
+80
+90
+100
Spread to Germany15y bonds
EU 04/2036 EFSF 04/2037 EIB 09/2036 ESM 11/2036 FRTR 05/2036 KFW 07/2036
* I-Spread levels as of 29/01/2021 - Source: Bloomberg ** first number: spread at issuance, remaining: spreads of taps
Coupon & maturity Payment date Exact maturity Amount (€)Spread vs. mid swap (bps)
at issuance current*
EU 3.500% 06/2021 31-05-2011 04-06-2021 4,750,000,000 14 -11
EU 2.750% 09/2021 21-09-2011 21-09-2021 5,000,000,000 20 -13
EU 2.750% 04/2022 04-05-2012 04-04-2022 2,700,000,000 56 -17
EU 0.625% 11/2023 01-10-2015 04-11-2023 3,500,000,000 -12 / -15** -16
EU 1.875% 04/2024 25-03-2014 04-04-2024 3,200,000,000 +9 / +6 / +3** -16
EU 0.500% 04/2025 06-02-2018 04-04-2025 2,400,000,000 -23 -16EU 0.000% 11/2025 17-11-2020 04-11-2025 8,000,000,000 -9 -19EU 3.000% 09/2026 29-09-2011 04-09-2026 4,000,000,000 40 -18
EU 2.500% 11/2027 30-10-2012 04-11-2027 3,000,000,000 36 -18
EU 2.875% 04/2028 03-07-2012 04-04-2028 2,300,000,000 68 -18
EU 0.000% 06/2028 02-02-2021 02-06-2028 10,000,000,000 -16 -16EU 1.375% 10/2029 12-11-2014 04-10-2029 2,245,000,000 +3 / +2 / -5** -21
EU 0.000% 10/2030 27-10-2020 04-10-2030 10,000,000,000 3 -16
EU 0.750% 04/2031 13-04-2016 04-04-2031 3,160,000,000 +2 / -12 / -26** -19
EU 3.375% 04/2032 05-03-2012 04-04-2032 3,000,000,000 78 -17
EU 1.250% 04/2033 06-03-2018 04-04-2033 2,615,000,000 -17 / -14 / -5** -17
EU 0.125% 06/2035 10-06-2020 10-06-2035 1,655,000,000 8 / -1.3 / -5 / -10** -12EU 0.000% 07/2035 01-12-2020 04-07-2035 8,500,000,000 -5 -11EU 1.500% 10/2035 22-09-2015 04-10-2035 2,000,000,000 4 -13
EU 0.500% 12/2035 03-07-2019 04-12-2035 250,000,000 -6 -11
EU 1.125% 04/2036 15-03-2016 04-04-2036 1,000,000,000 8 -11
EU 3.375% 04/2038 24-04-2012 04-04-2038 1,800,000,000 87 -11EU 0.100% 10/2040 27-10-2020 04-10-2040 7,000,000,000 14 -8EU 3.750% 04/2042 16-01-2012 04-04-2042 3,000,000,000 125 -3
EU 0.300% 11/2050 17-11-2020 04-11-2050 10,000,000,000 21 / 5 +4
EU: outstanding benchmark bondsissued since 2011
24
Outstanding EU loans by programme
BOP (Latvia); 0,2%
EFSM (Ireland); 21,2%
EFSM (Portugal); 22,9%
MFA ; 5,4%
SURE (Italy); 19,7%
SURE (Spain); 10,4%
SURE (others); 20,2%
Distribution of outstanding loans by programme
As of 29/01/202125
SURE benchmark bonds since 2020Investor distribution (after allocation)
UK23,0%
Germany19,7%
France12,5%
Benelux11,5%
Nordics7,3%
Other Europe7,0%
Asia6,3%
Italy6,3%
Americas2,4%
Middle East & Africa
2,0%
Switzerland1,8%
Rest of World0,2%
Investor distribution by region
EU dual-tranche (10y/20y) under SURE 2020: €17 billion
EU dual-tranche (5y/30y) under SURE 2020: €14 billion
Fund Managers38%
Bank Treasuries
27%
Central Banks / Official
Institutions19%
Insurance and Pension Funds
9%
Banks3%
Hedge Funds2%
Investor distribution by type
26
EU 15y under SURE 2020: €8.5 billion
EU dual-tranche (7y/30y tap) under SURE 2021: €14 billion
EUR 10 billion 0.000% Benchmark due 4 October 2030
Key terms Investor distribution by type
Issuer European Union (EU)
Issuer ratingsAAA stable (DBRS) / AAA stable (Fitch) / Aaa stable (Moody’s) / AA
positive (S&P) / AAA stable (SCOPE)
Pricing date 20 October 2020
Settlement date 27 October 2020
Maturity date 04 October 2030
Size € 10 billion
Coupon 0,000%
Re-offer spread MS +3 bps Investor distribution by region
Re-offer price 102.396%
Re-offer yield -0.238%
ISIN / Common
Code / WKNEU000A283859 / 224963122 / A28385
Listing Luxembourg Stock exchange
Denominations EUR 1,000
Bookrunners Barclays, BNP Paribas, Deutsche Bank, Nomura, UniCredit
15%1%
37%
41%
6%
10yr - Distribution by Investor type
Bank Treasuries
Banks
Central Banks / OfficialInstitutionsFund Managers
Insurance and PensionFunds
9%
15%
12%
17%8%5%
4%
7%
3%
20%
10yr - Distribution by geography
AsiaBeneluxFranceGermanyNordicsOther EuropeAmericasSouthern EuropeMiddle East & AfricaUK
27
EUR 7 billion 0.100% Benchmark due 4 October 2040
Key terms Investor distribution by type
Issuer European Union (EU)
Issuer ratingsAAA stable (DBRS) / AAA stable (Fitch) / Aaa stable (Moody’s) / AA
positive (S&P) / AAA stable (SCOPE)
Pricing date 20 October 2020
Settlement date 27 October 2020
Maturity date 04 October 2040
Size € 7 billion
Coupon 0,100%
Re-offer spread MS +14bps Investor distribution by region
Re-offer price 99.390%
Re-offer yield 0.131%
ISIN / Common
Code / WKNEU000A283867 / 224963149 / A28386
Listing Luxembourg Stock exchange
Denominations EUR 1,000
Bookrunners Barclays, BNP Paribas, Deutsche Bank, Nomura, UniCredit
25%
3%
13%46%
13%
20yr - Distribution by Investor type
Bank Treasuries
Banks
Central Banks / OfficialInstitutionsFund Managers
Insurance and PensionFunds
1%
16%
19%
24%
6%1%
5%
10%
2%16%
20yr - Distribution by geography
AsiaBeneluxFranceGermanyNordicsOther EuropeAmericasSouthern EuropeMiddle East & AfricaUK
28
EUR 8 billion 0.000% Benchmark due 4 November 2025
Key terms Investor distribution by type
Issuer European Union (EU)
Issuer ratingsAAA stable (DBRS) / AAA stable (Fitch) / Aaa stable (Moody’s) / AA
positive (S&P) / AAA stable (SCOPE)
Pricing date 10 November 2020
Settlement date 17 November 2020
Maturity date 4 November 2025
Size € 8 billion
Coupon 0,000%
Re-offer spread MS -9 bps Investor distribution by region
Re-offer price 102.566 %
Re-offer yield -0.509 %
ISIN / Common
Code / WKNEU000A284451 / 225919232 / A28445
Listing Luxembourg Stock exchange
Denominations EUR 1,000
BookrunnersBofA Securities, Commerzbank, Credit Agricole CIB, DZ BANK and
TD Securities
16%
8%
13%
10%8%
3%
7%2%
10%
24%
5yr - Distribution by geography
Asia & Middle EastBeneluxFranceGermanyNordicsOther EuropeAmericasSwitzerlandSouthern EuropeUK
21%
3%
30%
33%
8%5%
5yr - Distribution by Investor type
Bank Treasuries
Banks
Central Banks / OfficialInstitutionsFund Managers
Hedge Funds
Insurance and PensionFunds
29
EUR 6 billion 0.300% Benchmark due 4 November 2050
Key terms Investor distribution by type
Issuer European Union (EU)
Issuer ratingsAAA stable (DBRS) / AAA stable (Fitch) / Aaa stable (Moody’s) / AA
positive (S&P) / AAA stable (SCOPE)
Pricing date 10 November 2020
Settlement date 17 November 2020
Maturity date 4 November 2050
Size € 6 billion
Coupon 0,300%
Re-offer spread MS +21 bps Investor distribution by region
Re-offer price 99.515 %
Re-offer yield 0.317%
ISIN / Common
Code / WKNEU000A284469 / 225919267 / A28446
Listing Luxembourg Stock exchange
Denominations EUR 1,000
BookrunnersBofA Securities, Commerzbank, Credit Agricole CIB, DZ BANK and
TD Securities
15%
4%
15%
38%
4%
23%
1%
30yr - Distribution by Investor type
Bank Treasuries
Banks
Central Banks / OfficialInstitutionsFund Managers
Hedge Funds
Insurance and Pension Funds
2%
8%
17%
29%7%2%2%
4%
11%
18%
30yr - Distribution by geography
Asia & Middle EastBeneluxFranceGermanyNordicsOther EuropeAmericasSwitzerlandSouthern EuropeUK
30
EUR 8,5 billion 0.000% Benchmark due 4 July 2035
Key terms Investor distribution by type
Issuer European Union (EU)
Issuer ratingsAAA stable (DBRS) / AAA stable (Fitch) / Aaa stable (Moody’s) / AA
positive (S&P) / AAA stable (SCOPE)
Pricing date 24 November 2020
Settlement date 01 December 2020
Maturity date 4 July 2035
Size € 8.5 billion
Coupon 0,000%
Re-offer spread MS -5bps Investor distribution by region
Re-offer price 101.50%
Re-offer yield -0.102%
ISIN / Common
Code / WKNEU000A285VM2 / 226550453 / A285VM
Listing Luxembourg Stock exchange
Denominations EUR 1,000
BookrunnersCitigroup Global Markets Europe AG, HSBC, J.P. Morgan AG,
Landesbank Baden-Württemberg, Société Générale
20%
1%
15%
48%
2% 14%
15yr - Distribution by Investor type
Bank Treasuries
Banks
Central Banks / OfficialInstitutionsFund Managers
Hedge Funds
Insurance and PensionFunds
6%
13%
12%
22%11%
3%1%
7%
24%
15yr - Distribution by geography
AsiaBeneluxFranceGermanyNordicsOther EuropeRoWSouthern EuropeUK
31
EUR 10 billion 0.000% Benchmark due 2 June 2028
Key terms Investor distribution by type
Issuer European Union (EU)
Issuer ratingsAAA stable (DBRS) / AAA stable (Fitch) / Aaa stable (Moody’s) / AA
positive (S&P) / AAA stable (SCOPE)
Pricing date 26 January 2021
Settlement date 02 February 2021
Maturity date 2 June 2028
Size € 10 billion
Coupon 0,000%
Re-offer spread MS -16bps Investor distribution by region
Re-offer price 103.719%
Re-offer yield -0.487%
ISIN / Common
Code / WKNEU000A287074 / 229459163 / A28707
Listing Luxembourg Stock exchange
Denominations EUR 1,000
BookrunnersBarclays Bank Ireland, Commerzbank, Deutsche Bank, Goldman
Sachs Bank Europe SE, LBBW
39,0%
34,7%
18,9%
4,5%
1,7% 1,2%
7yr - Distribution by Investor type
Bank Treasuries
Fund Managers
Central Banks / OfficialInstitutionsBanks
Hedge Funds
Insurance and PensionFunds
34,7%
14,0%9,0%
8,8%
8,4%
7,8%
7,3%
4,1%4,1% 1,8%
7yr - Distribution by geography
UKGermanyItalyBeneluxFranceOther EuropeAsiaNordicsMiddle East & AfricaSwitzerland
32
EUR 4 billion 0.300% - TAP Benchmark due 4 November 2050
Key terms Investor distribution by type
Issuer European Union (EU)
Issuer ratingsAAA stable (DBRS) / AAA stable (Fitch) / Aaa stable (Moody’s) / AA
positive (S&P) / AAA stable (SCOPE)
Pricing date 26 January 2021
Settlement date 02 February 2021
Maturity date 4 November 2050
Size € 4 billion (reopening of existing line)
Coupon 0,300%
Re-offer spread MS +5 bps Investor distribution by region
Re-offer price 104.839 %
Re-offer yield 0.134%
ISIN / Common
Code / WKNEU000A284469 / 225919267 / A28446
Listing Luxembourg Stock exchange
Denominations EUR 1,000
Bookrunners Barclays Bank Ireland, Commerzbank, Deutsche Bank, Goldman
Sachs Bank Europe SE, LBBW
30,0%
46,2%
4,3%
6,5%
2,0% 11,0%
30yr - Distribution by Investor type
Bank Treasuries
Fund Managers
Central Banks / OfficialInstitutionsBanks
Hedge Funds
Insurance and Pension Funds
16,4%
33,4%
11,7%
13,3%
8,2%
7,5%
0,5%6,8%
0,1%1,6% 0,5%
30yr - Distribution by geography
UKGermanyItalyBeneluxFranceOther EuropeAsiaNordicsMiddle East & AfricaSwitzerlandRest of World
33
34
Synopsis of European supranational issuersEuropean Union (EU) EFSF (data as of 10/11/2020) ESM (data as of 10/11/2020) EIB (data as of 30/06/2020)4
Legal
Foundation
Supranational body established under EU
Treaty (TFEU)
Private Company ('Societe
Anonyme') incorporated under
Luxembourg Law, founded on an
international agreement
International financial institution
established under international
treaty - Multilateral Lending
Institution (since October 2012)
Autonomous public financial institution
established under EU Treaty (TFEU, Art. 308) -
Multilateral Lending Institution
Lending
capacity
SURE: €100 bn; Utilised €39.5 bn
EFSM: €60 bn
Utilised: €46.8 bn; Outstanding: €46.8 bn
BoP: €50 bn,
Utilised: €13.4 bn; Outstanding: €0.2 bn
MFA: no ceiling, €5.79 bn outstanding
€440 bn
Utilised: €172.61 bn,
Outstanding: €172.61 bn
€500 bn
Utilised: €89.9 bn,
Outstanding: €89.9 bn
Available capacity: €410.1 bn
250% of subscribed capital, reserves, non-
allocated provisions and profit and loss account
surplus, less equity participations (excluding loan
substitutes):
Loans disbursed: €428bn
Loans to be disbursed: €101bn
Mandate Provide financial assistance to countries
in financial and economic difficulty in
order to promote economic and social
integration of the member states
Provide financial assistance to
euro area member states in
difficulties in order to safeguard
financial stability in Europe
Provide financial assistance to
euro area member states in
difficulties in order to safeguard
financial stability in Europe
EU's long-term lending institution: finances
sustainable investment projects that contribute to
EU policy objectives. More than 90% of activity in
EU.
Shareholders 27 EU member states 17 euro area member states
(without Latvia and Lithuania)
All 19 euro area member
states
27 EU member states
Support to
Bondholders
EU budget and member states' obligation
to provide the funds necessary to meet
the EU’s legal obligations.
EU Budget 2020:
€153.6 bn in payments (€168.7 bn in
commitments).
Explicit, irrevocable and
unconditional guarantee of the
members; 'several' liability except
for Member States in a
programme (‘stepping out’ )
€724.4 bn overall guarantees;
bond issuance backed by up to
165% over guarantees.
Share capital comprising paid
in capital and callable capital.
Explicit, irrevocable and
unconditional obligation to pay
the share of callable capital on
demand; 'several' liability
Callable capital: €624.25 bn
Paid-in capital: €80.55 bn
Explicit obligation on EIB's shareholders to pay
their own share of the callable capital, on demand
from the Board of Directors; 'several' liability.
Callable capital: €226.6bn
Paid-in capital reserves and surplus: €72.3bn
Subscribed capital: €248.8bn
Ratings¹ AAA/Aaa/AA/AAA²/AAA³ AA/Aa1/AA/AAA²/AA+³ AAA/Aa1/AAA/AAA²/AAA³ AAA/Aaa/AAA/AAA²/AAA³
¹ Fitch / Moody's / S&P / DBRS / SCOPE ² DBRS: unsolicited rating ³ SCOPE: unsolicited rating
4Based on EIB (unconsolidated) unaudited condensed interim financial statements under EU Accounting Directives, as of November 2020.34
Contacts – EU funding team
BUDGET E3: Borrowing and Lending operations
Jean-Pierre RAES, Head of Funding
Tel.: +352 4301 30070
Email: jean-pierre.raes@ec.europa.eu
Stefan KOHLER, CFA, Senior Borrowing Manager
Tel.: +352 4301 37453
Email: stefan.kohler@ec.europa.eu
Lara PAVANELLO, Financial Officer
Tel.: +352 4301 33931
Email: lara.pavanello@ec.europa.eu
Thilo SARRE, Manager Borrowing & Lending
Tel.: +352 4301 38876
Email: thilo.sarre@ec.europa.eu
Ana-Mihaela DANIELESCU, Financial Officer
Tel.: +352 4301 36732
Email: Ana-Mihaela.danielescu@ec.europa.eu
Directorate-General for Budget (BUDG), Directorate E 12 Rue Guillaume J. Kroll, L-1882 Luxembourg
Direct access to investor relations site:
http://ec.europa.eu/economy_finance/eu_borrower/index_en.htm
Bloomberg: EUEU
35
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