Chicago, Nov. 14 – The European Union added €3 billion to its outstanding issue of 2.625% green bonds due Feb. 4, 2048 (Aaa/AA+/AAA/Scope: AAA), according to a market source regarding the Tuesday-pricing deal.
The bonds priced at 82.173 to yield 3.759%, or at mid-swaps plus 72 basis points. Guidance was in the mid-swaps plus 74 bps area.
The additional sale will bring the total deal size to €14 billion. The tap issue will be immediately fungible with the existing bonds.
The €8 billion Regulation S deal also included €5 billion of non-green bonds.
BNP Paribas (billing and delivery), Barclays, LBBW, Morgan Stanley and Nordea were joint lead managers.
Massive interest in the deal resulted in a final order book for just the green tranche at over €71 billion. The new bonds had a final book over €66 billion.
Proceeds will be used for purposes under the NextGenerationEU green bond framework. Specifically, funds will be used for nine broad categories of expenditure, including energy efficiency, clean energy and climate change adaptation.
| Issuer: | European Union
|
| Amount: | €3 billion
|
| Issue: | Green bonds
|
| Maturity: | Feb. 4, 2048
|
| Bookrunners: | BNP Paribas (billing and delivery), Barclays, LBBW, Morgan Stanley and Nordea
|
| Coupon: | 2.625%
|
| Price: | 82.173
|
| Yield: | 3.759%
|
| Spread: | Mid-swaps plus 72 bps, or Bunds plus 83.8 bps
|
| Trade date: | Nov. 14
|
| Settlement date: | Nov. 21
|
| Ratings: | Moody’s: Aaa
|
| S&P: AA+
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| Fitch: AAA
|
| Scope: AAA
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 74 bps area
|
| ISIN: | EU000A3K4DM9
|
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