EN   EN 
 
 
 EUROPEAN  
COMMISSION   
Brussels, 17.2.2022  
COM(2022) 43 final  
 
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND 
THE COUNCIL  
Semi -annual report on the execution of the NextGenerationEU funding operations 
pursuant to Article 12 of Commission Implementing Decision C(2021)2502    
   
June - December 2021   
   
  
 
EN   EN  
Table of Contents  
1. Introduction  ................................ ................................ ................................ ..................  3 
2. Main outcomes of the NextGenerationEU funding programme  ................................ .. 3 
3. Setting -up and implementing the NextGenerationEU Funding Strategy  .....................  6 
4. Conclusion ................................ ................................ ................................ ..................  11 
Annex. Overview of bond and bill issuances  ................................ ................................ ...........  12 
 
 
 
1 NextGenerationEU funding   
at 31 December 2021  
Long-term borrowing   Short -term borrowing  
€71 billion EU -bonds  
of which €12 billion green   €25 billion issued in 3 - and 6 -months EU -Bills 
of which €20 billion still outstanding  
KEY FACTS   KEY FACTS  
• 5 syndications, 2 auctions   
• Average cost of funding 0.14%  
• 7 to nearly 14 times oversubscribed   • 7 auctions  
• Average yield -0.78%  
• Bid-to-cover ratio of 2.55x  
 
Use of proceeds  
at 31 December 2021
 
KEY FACTS  
• 20 Member States received grants and loans under the RRF(2) 
• Payments within 6 days of signing the Loan and Financing Agreements  
 
 
(1) Budget available to Horizon Europe, InvestEU Fund, ReactEU, the Union Civil Protection Mechanism (RescEU), the 
European Agricultural Fund for Rural Development (EAFRD), and the Just Transition Fund. Actual disbursements to final 
beneficiaries may be lower , due to timing differences.  
(2) The Recovery and Resilience Plans of 22 Member States had been approved by the end of 2021, but one Member State 
received pre -financing in January 2022 and one Member State did not request pre -financing.  
€12 billion  
Green Bonds  
€6 billion  
€10 billion  
€20 billion  
€11.5  billion  
€11.5  billion  
10-year maturity  
20-year maturity  
30-year maturity  
7-year maturity  
5-year maturity  
15-year maturity  
€13.5 billion  
 
€11.5 billion  
 
€11.5 billion  
 
€8.5 billion  
 
€5 billion  
 
Issued  
 
Outstanding  
Matured  
3-month  
6-month  
Recovery and Resilience Facility 
grants to EU Member States   
Recovery and Resilience Facility 
loans to EU Member States  
€46.4  billion  
 €18.0  billion  
€8.6 bn(1) 
Other programmes  
under the EU budget  
 
2 1. Introduction  
NextG enerationEU represents a ground breaking funding programme, able to mobilise up to 
5% of EU GDP through borrowing to finance a collective and powerful EU response to the 
COVID -19 pandemic. NextGeneration EU is a temporary instrument , under which the 
Commissi on can raise up to EUR 800 billion between mid -2021 and 2026 through the 
issuance of bonds. The proceeds of this bond issuance will allow the E U to overcome the 
immediate recovery challenges but also to accelerate the green  transition and the digitalisatio n 
of the EU economy. Up to EUR 250 billion will be raised through the issuance of 
NextGenerationEU  green bonds. NextGenerationEU  entails annual bond issuance of on average 
up to roughly EUR 150 billion per year between mid -2021 and 2026, making the EU one of 
the largest issuers  of euro -denominated debt for the coming years . 
This report – the first semi -annual report pursuant to Article 12 of Commission Implementing 
Decision C(2021)2502 – reviews the implementation of the N extGeneration EU funding strategy 
during the period June  – December 2021. The report focusses solely on the process implemented to 
raise and disburse the funding for NextGenerationEU. It does not evaluate how the proceeds have 
been used , including on green expenditures, as that will be cover ed in separate reporting exercises  in 
accordance with the Regulations of each NextGenerationEU funded instrument . This report forms 
one part of a regular flow of information to the European Parliament and Member States on the 
implementation of this large -scale and  innovative funding programme. Transpare ncy and 
accountability are hall marks of the NextGenerationEU funding operations.  
 
2. Main outcomes of the NextGenerationEU funding programme  
The past 12 months have seen a transformation in the standing of the C ommission in debt 
capital markets. Before the start of SURE1 and NextGenerationEU, the Commission was a 
small and irregular issuer, raising limited volumes  (on average EUR 2 -3 billion over  the 
period 2015 -2019) to finance lending programmes such as the Eur opean Financial 
Stabilisation Mechanism (EFSM)  and Macro -financial assistance (MFA). In the course of 
2021, the Commission raised some EUR 130 billion - over EUR 50 billion for the SURE 
programme, EUR 71 billion for  NextGenerationEU of which EUR 12 billion  in the form of 
green bonds , and EUR 12 billion for other lending programmes . As part of the 
NextGenerationEU funding programme, the Commission has also initiated the EU -Bill 
programme , under which EUR 20 billion in short -term debt was outstanding at 31 De cember 
2021. The Commission has quickly emerged as one of the biggest issuers of new debt in euro 
and has become the biggest green bond issuer globally.  
All NextGenerationEU transactions  attracted high investor demand  and were concluded on 
advantageous te rms for the EU budget and Member States. The average cost of funding for all 
NextGenerationEU issuance conducted in 2021 amounts to 0.14% across maturities from 5 -30 
years. Conditions compared favourably to those achieved by highly -rated core euro -area 
sovereigns. The benefits of these attractive funding conditions are passed on to the EU budget 
or to Member States receiving Recovery and Resilience Facility (RRF) loans.  
                                                 
1  SURE is  temporary support available to Member States that need to mobilise significant financial means to 
fight the negative economic and social consequences of the coronavirus outbreak on their territory. SURE  can 
provide financial assistance up to €100 billion in the form of loans from the EU to affected Member States to 
address sudden increases in public expenditure for the preservation of employment. The legal basis for SURE 
is: Council Regulation (EU) 2020/ 672 of 19 May 2020 on the establishment of a European instrument for 
temporary support to mitigate unemployment risks in an emergency (SURE) following the COVID -19 
outbreak  (OJ L 159, 20.5.2020, p. 1).  
 
3 The Commission’s ability to raise funds on these favourable terms is reinforced by the steady 
issuance of large volumes of NextGenerationEU bonds across a wide range of maturities. 
These characteristics of the issuances  permit increased liquidity in the secondary markets for 
NextGenerationEU bonds , which makes it easier for investors to buy and sell these  bonds. 
This makes it increasingly attractive for investors to trade NextGenerationEU  bonds, which in 
turn leads to better pricing of NextGenerationEU issuance. Liquidity of NextGenerationEU  
bonds approaches levels for core Euro Area sovereig ns as measured by standard metrics.2  
The first syndicated transaction took place on 15 June 2021, two weeks after the entry into 
force of the Own Resources Decision3 and was followed swiftly by two more. This immediate 
large -scale activation of the funding programme during summer 2021 allowed the 
Commission to make all disbursements under the EU Recovery Plan to Member States4 and to 
the budget as soon as they fell du e. As of 31 December 2021, the Commission has disbursed 
EUR 64.3 billion to 20 Member States under the RRF : EUR 46.4 billion in the form of grants, 
EUR 18 billion in the form of loans. All disbursements have taken place within six working 
days after the si gning of the Financ ing and Loan Agreements. This timely and efficient 
disbursement of funds was facilitated by the European Central Bank which holds the central 
NextGenerationEU accounts. In addition to the amounts transferred to the RRF , more than 
EUR 8.6 billion has been transferred from the NextGenerationEU funding pool  to the EU 
budget to fund top-ups for NextGenerationEU -funded programmes such as Horizon Europe, 
InvestEU Fund, ReactEU, the Union Civil Protection Mechanism (RescEU), the European 
Agricul tural Fund for Rural Development (EAFRD), and the Just Transition Fund.  
The ability of the Commission to scale -up its bond issuance so quickly was due in large part 
to the strong and compelling narrative around the EU Recovery Plan. The willingness of all 
Member States to stand behind – via their contribution to future EU budgets - the 
NextGenerationEU funding programme was the most powerful expression possible of Union 
solidarity and ambition in response to the crisis. This strong political cohesion, compl emented 
by the  EU’s strong credit rating, was  decisive in convincing European and international 
investors of the inherent soundness of this new NextGenerationEU debt.  
Implementing a bond issuance programme of this scale also required the Commission to 
build, almost from scratch, a new funding apparatus capable of running large -volume 
transactions  on a regular basis. While the seven  large SURE transactions (for a combined 
issuance of EUR 90 billion) had provided a valuable dress -rehearsal, NextGenerationEU 
called for a more structured and durable capacity. The blueprint for this strategy was defined 
in a Communication5 and a set of Decisions adopted on 14 April 2021 , which laid the 
foundations for the NextGenerationEU funding programme. The pictogramme below recalls 
the main milestones in building the Commission’s capacity to implement a sovereign -style 
diversified funding strategy.  
                                                 
2 During Q2 -Q3 2021, monthly turnover in the secondary  market amounted to 15% of the outstanding NGEU 
debt. This ratio is comparable to that observed in the most liquid Euro Government Bond markets.  
3 Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the 
European U nion and repealing Decision 2014/335/EU, Euratom (OJ L 424, 15.12.2020, p. 1).  
4 This enabled 20 Member States to obtain pre -financing of their grants, 5 Member States to obtain pre -
financing of their loans, and Spain to obtain the payment of its first grant instalment.  
5 Communication COM(2021)250 on a new funding strategy to finance NextGenerationEU (published on 14 
April 2021). See com2021_250_en_act_part1_v3.pdf (europa.eu) . 
 
4 Figure 1: Key steps in setting up the NextGenerationEU  (NGEU)  funding operations  
 
 
 
 
 
 
 
 
 
 
 
Achieving these milestones required a number of key enablers, including:  
1. The r eliable forecasting of RRF disbursement needs as the starting point for sound 
planning of the bond issuances;  
2. The e stablishment of the Primary Dealer Network in May 2021 to facilitate the 
efficient execution of auctions and syndicated transactions and support liquidity in the 
second ary market for NextGenerationEU bonds. By end 2021, 42 banks and 
investment firms established in 12 different Member States had been admitted to the 
network6. This includes all major players active in the placement of sovereign and 
Sovereign, Supranational  & Agency (SSA) debt. This pan -European primary dealer 
network allows the EU to place EU bonds and bills with the widest possible investor 
base – inside and outside the EU;  
3. The launch of a tailor -made auction platform for EU -Bill and bond auctions in 
Septe mber 2021, using the TELSAT system of the Banque de France. Auctions are a 
cost-effective way of issu ing debt in the form of EU -Bill and bonds;  
4. The creation of a strong governance framework to oversee the sustained execution of 
funding operations in a mann er that minimises key risks and ensures full transparency 
and accountability. The blueprint for the NextGenerationEU funding operations, as set 
out in the April 2021 Governance Decision7, accords a central place to the 
identification and mitigation of risk s. A Chief Risk Officer (CRO), in office since 1 
                                                 
6 A 43rd institution has since been admitted. The latest list can be found on the Commission website: Primary 
Dealer Network | European Commission (europa.eu) . 
7 Commission Implementing Decision of 14 April 2021 establishing the necessary arrangements for the 
administration of the borrowing operations under Council Decision (EU, Eurat om) 2020/2053 and for the 
lending operations related to loans granted in accordance with Article 15 of Regulation (EU) 2021/241 of the 
European Parliament and of the Council; C/2021/2502 final.  
 
1 June  
Publication 
first 
Funding 
Plan  
1 June  
Adoption 
annual 
borrowing 
Decision  
14 April  
Adoption 
Diversified 
Funding  
Strategy  
15 June  
Inaugural 
NGEU 
issuance  
(€20 billion)  
31 May  
Launch  
Primary 
Dealer 
Network  
1 September  
Chief Risk 
Officer takes 
up office  
7 September  
Publication 
Green Bond 
Framework  
15 
September  
Inaugural   
EU-Bill 
auction  
12 October  
Inaugural 
green bond 
issuance   
(€12 billion)  
 
5 September 2021, has been appointed to provide independent oversight of all aspects of 
the NextGenerationEU funding programme, on the basis of the NextGenerationEU 
High Level Risk and Compliance Policy adopte d in December 2021. The Chief Risk 
Officer is supported in the implementation of this policy by the Risk and Compliance 
Committee which met for the first time in December 2021.  
5. The publication of the NextGenerationEU Green Bond Framework in September 
2021 . The framework, based on the RRF Regulation8,– and also integrating many 
aspects of the EU Green Bond Standard and the Taxonomy, – identifies nine broad 
categories of eligible expenditure : renewable energy, digital technologies for the green 
transition, energy efficiency, clean transport,  climate change adaptation, water, waste, 
biodiversity,  and R&I supporting the green transition . The framework  has been 
reviewed by a second party opinion provider. The first green bond issuance took place 
on 12 October 20 21, raising EUR 12 billion to be used exclusively for green and 
sustainable investments across the EU. Th e inaugural green bond was more than 11 
times oversubscribed, attracted interest from a wide range of investors, and remains 
the world's largest green bond issuance to date.  
 
3. Setting -up and implementing the NextGenerationEU  Funding Strategy  
This section of the report examines the progress in developing the eight  capabilities that were 
identified in the  above -mentioned  Communication of 14 April 2021 as b eing critical to the 
successful delivery of this funding programme.  
3.1 Structured planning and communication of issuance intentions  
The NextGenerationEU funding programme is based on a structured approach to the planning 
of its issuance activities in annual and 6 -monthly cycles. This planning is underpinned by the 
provision of detailed information on Recovery Plan disbursement needs, which are updated 
on a regular basis.  
This cycle commences with an an nual borrowing Decision to set an upper bound for t he 
amount of bond issuance and outstanding debt under the EU -Bill programme. These key 
dimensions provide a firm anchor for the Commission as it organises the borrowing 
operations. The 2021 annual borrowing Decision allowed the Commission to issue in 2021 up 
to a maximum amount of EUR 125 billion in long -term funding and up to a maximum 
outstanding amount of EUR 60 billion in short -term funding.  
The Commission then prepares a funding plan to fix the issuance calendar and the key 
financial parameters of the  upcoming transactions. This information is communicated publicly 
as investors need it in order to prepare to allocate funds to Commission transactions, thereby 
facilitating the successful absorption of NextGenerationEU issuance at lower cost. The first 
NextGenerationEU funding plan set a target of EUR 80 billion in EU bonds.  
                                                 
8 All spending has to respect the do -no-significant -harm (DNS H) principle for other environmental objectives. 
To achieve this, Member States agree in the Finance and Loan Agreements to regularly report on 
expenditures linked to green investments.  
 
 
6 The Commission adopted its annual borrowing Decision9 and published its first funding 
plan10 on the same day as the entry into force of the Own Resources Decision – 1 June 2021.  
Disburs ements to Member States under the RRF  – which accounts for 90% of payments under 
NextGenerationEU – are subject to some uncertainty as regards the exact timing and amounts. 
Where actual disbursement needs deviate from original forecasts, there may be a n eed to 
revise the funding plan.  Such a revision of the H2 2021 funding plan took place in November 
2021 when the funding target was revised slightly downwards  reflecting an updated 
assessment of the payment needs under the NextG enerationEU recovery instrumen t11. On the 
basis of this revised target, the Commission issued EUR 70.992  billion euro in bonds in 2021.  
All NextGenerationEU bond and bill issuances that took place in 2021 are included in the 
Annex to this report.  
On 14 December 2021, the Commission publ ished the 2022 annual borrowing Decision12 and 
the funding plan and issuance calendar for January to end -June 202213. The 2022 annual 
borrowing Decision allows the Commission to issue in 2022 up to a maximum amount of 
EUR 140 billion in long -term funding and  up to a maximum outstanding amount of EUR 60 
billion in short -term funding. The H1 2022 funding plan foresees the issuance of EUR 50 
billion of long -term EU -Bonds between January and June 2022, to be complemented by short -
term EU -Bills. The H1 2022 fundin g plan was adopted following  a review by the Chief Risk 
Officer.  
The NextGenerationEU issuance planning also takes into account the longer -term perspective 
that is needed to allow for a steady and progressive repayment of the debt as it matures. In 
line wi th the requirements of the Own Resources Decision, the Commission is planning the 
maturities of its issuance and the related repayments in such a way that there will be a steady 
and predictable decline of NextGenerationEU liabilities over the period to 205 8. 
3.2 Effective coordination with national and peer issuers  
The publication of the 6 -mont hly funding plans, including the issuance calendar, has been an 
important instrument to coordinate with supranational and national debt management offices 
who also run large issuance programmes to meet their funding needs.  
In addition, the Commission has provided on several occasions  information to the E uropean 
Parliament  BUDG Committee and the Economic and Financial Committee about 
NextGenerationEU funding operation s. It participates in meetings of the Economic and 
Financial Committee's Sub -Committee on EU Sovereign Debt Markets (ESDM) , where the 
implementation of the NextGenerationEU funding programme is a regular agenda -item.  
3.3 Strong liquidity management to mat ch inflows and outflows  
A key yard -stick for the success of NextGenerationEU  is the ability of the programme to 
disburse all amounts as and when they fall due for payment (or repayment) and to avoid 
having to raise funds in inopportune market conditions. A  proactive approach to  the 
management of liquidity and the ability to raise funds on attractive terms at short notice are 
critical in this regard.  
                                                 
9  Commission Implementing Decision of 1 June 2021 establishing the framework for borrowing and debt 
management operations under NextGenerationEU for 2021 C/2021/ 3991  final.  
10 factsh eet_funding_plan_jan -jun-2022.pdf (europa.eu)  
 
11 factsheet_funding_plan_v7.pdf (europa.eu)  
12 Commission Implementing Decisio n of 1 4 December  2021 establishing the framework for borrowing and debt 
management operations under NextGenerationEU for 2022 C/2021/9336 final.  
13 factsheet_funding_plan_jan -jun-2022.pdf (europa.eu)  
 
 
7 Since the start of the funding operations, the Commission has been holding a variable 
prudential cash buffer as an important safeguard against liquidity shortfalls that could prevent 
the Commission from meeting disbursement requests  in a timely manner. To manage these 
liquid ity holdings, the Commission  set up an account at the ECB  in 2021, so that these critical 
cash holdings are not subject to counterparty risk.  
This liquidity buffer has been supported by the use of the full range of instruments under the 
diversified funding strategy that provide the Commission the flexibility needed to match 
inflows and ou tflows. This included in July/ August 2021 the use of credit lines. These credit 
lines enabled the Commission to meet all payment requests from Member States for the pre -
financing of their Recovery and Resilience Plans over the summer while avoiding an 
oversupply of bonds to an illiquid market. The amounts raised through these credit lines have 
now been fully repaid.  
Since September 2021, the Commission has been able to use the EU-Bill programme to raise 
liquidity on competitive terms. Between 15 September a nd 31 December 2021, the 
Commission organised seven EU -Bill auctions, raising EUR 25 billion via 3 -month and 6 -
month EU -Bills, of which EUR 5 billion matured in December 2021. The weighted average 
yield obtained for the auctions was -0.78% and the average bid-to-cover ratio (being the 
demanded amount  compared to the  offered amount in an auction) stood at 2.55x. Both metrics 
indicate strong demand from the Primary Dealers in our network and point to strong short -
term funding operations.  
By equipping itself with these means to manage liquidity, the Commission was able to meet 
all payment requests within six days.  
3.4 Strong execution capability to carry out individual funding operations  
The Commission has strengthened its funding executio n capabilities, enabling it to use a mix 
of transaction formats to meet the NextGenerationEU funding needs: in the first six months , 
the Commission used five syndicated transactions, two bonds and seven  bills auctions, new 
issuances and taps, and credit li nes. 
The two most important elements of this enhanced capability were:  
a) Setting up a pan -European Primary Dealer network  
Following the launch of a call for interest,14 the Commission published on 31 May 2021 a list 
of 39 banks and investment firms that  had successfully applied  to its Primary Dealer Network . 
Inscription is open on a rolling basis to members of national or other EU primary dealer 
networks. As of 31 December 2021, the Commission ha d 42 banks and investment firms as 
EU Primary Dealers, located  in 12 Member States, with different business models, including 
all major players in the placement of sovereign and SSA debt, and with operations all over the 
world.  
The Commission maintains a dialogue with the Primary Dealers (including through structured  
feedback). It also ensures that the selection of Primary Dealers for syndicated transactions is 
based on rigorous application of quantitative and qualitative criteria, complemented by the 
application of a rotation factor to ensure that  it is not always th e same banks  that are 
mandated.  
                                                 
14 Commission Decision (EU, Euratom) 2021/625 of 14 April 2021 on the establishment of the primary dealer 
network and the definition of eligibility criteria for lead and c o-lead mandates for syndicated transactions for 
the purposes of the borrowing activities by the Commission on behalf of the Union and of the European 
Atomic Energy Community.  
 
8 b) Setting up a state -of-the-art auction platform  
With the support of Banque de France, the Commission has set up in 2021 an auction 
platform for EU -Bills and bonds. The Primary Dealers were  connected to the Banque de 
France’s TELSAT system over the course of the summer  2021 , allowing the Commission to 
launch the first EU -Bill auction on 15 September 2021 and the first bond auction on 27 
September 2021.  
The auction platform has allowed the Co mmission to establish a regular programme of 
auctions, alongside its syndicated transactions.  
Between 15 September and 31 December 2021, the Commission organised seven EU -Bill 
auctions, raising EUR 25 billion via 3 -month and 6 -month EU -Bills, of which EUR  5 billion 
matured in December 2021. In addition, the Commission raised EUR 5 billion through two 
bond auctions.  
3.5 Robust governance and risk management systems  
The Commission has established a clear and robust governance framework to structure the 
core decision -making processes (e.g. annual borrowing Decision), implementation modalities 
(funding plan) and capacities (e.g. syndicated transactions and auctions) of the funding 
operations and to ensure robust and independent oversight. These have been commen ted on 
above.  
The need to identify, minimise and manage remaining risk is built into every key business 
process in the NextGenerationEU funding programme. Recourse to a diversified funding 
strategy is in itself a means of mitigating the risks of being unable to fund Recovery Plan 
needs on time or on reasonable terms. In order to ensure a sustained and keen focus on 
minimising risk, the Commission has appointed a Chief Risk Officer  (CRO)  and Compliance 
Officer, establish ed a Risk and Compliance Committee tha t supports the CRO, and adopt ed a 
High Level Risk  and Compliance Policy.  
In June 2021 the Commission  appointed the CRO , who took office on 1 September 2021. The 
CRO  has drawn up a High Level Risk and Compliance Policy, that has been endorsed by the 
Risk and Compliance Committee and approved by  the Commissioner  for Budget and 
Administration, Johannes  Hahn on 1 December 2021. This policy comprises an appropriate 
risk m anagement and compliance framework for the oversight of the risks and compliance 
matters arising from the implementation of NextGenerationEU borrowing, debt management 
and lending operations and sets the appropriate mitigation measures  and monitoring 
proce dures . The CRO ensures that the policy is implemented in a comprehensive and 
consistent manner, and reports annually to the Commission on the implementation of this 
policy.  
3.6 Fit-for-purpose back -office, payment and accounting solutions  
The Commission ha s reinforced its back -office and accounting functions to ensure the 
efficient execution, auditability and accountability of all transactions. More specifically:  
- The Commission has adapted its transaction recording and booking system in -time so 
that all bor rowing and lending transactions have been properly recorded in the system 
since the start of the NextGenerationEU funding operations in June 2021.  
- Together with the ECB the Commission has included the data of Member States in the 
payment systems and tested  these with Member States so that all payments to Member 
States can be processed securely, swiftly, and at any time.  
- The Commission updated the Debt Issuance Programme (DIP) of the E U and 
EURATOM on 4 June 2021 to, inter alia, include auctions.  
 
9 - Together with its Issuer Agent the Commission set up new procedures for auctions 
which  has led to the smooth processing of all primary transactions  on the settlement 
date.  
- The Commission prepared the booking system so that the financial statements can be 
produced properly and can be audited by the external auditor in a timely manner.  
3.7 Attractive Recovery and Resilience Facility loans  
Under NextGenerationEU, the Commission  is empowered to issue up to EUR 385 billion to 
finance RRF loans to Member States. By the end of 2021 almost 40% of the total RRF loan 
envelope has been allocated to six Member States15 whose loan applications have been 
approved.  Member States can request loan support until 31 August 2023.  
The terms offered on these loans were highly advantageous, thanks to the EU’s high ly rated 
issuances and strong investor demand (with the bond syndications being 7 to nearly 14 times 
oversubscribed). Other terms and conditions of the loans to borrowing Member State s are also 
designed to make them  an attractive source of state financing. M ember States will make 
amortised repayments, starting after a grace period of 10 years , thus allowing Member States 
to benefit from the growth triggered by reform and investment before commencing 
repayment. Following the initial grace period, Member States  will make annual repayments of 
5% of the disbursed amounts. This spreading of repayment over time will avoid peak 
repayment periods for both the EU budget and Member States. This approach to structuring 
loans will be implemented in the same way for all Me mber States receiving loans.  
In July 2021, the Commission published a Decision16 that sets out how the costs incurred for 
the NextGenerationEU funding pool are allocated to Member States receiving RRF loans and 
the EU budget. The relevant costs are allocat ed to borrowing Member States and the EU 
budget on the basis of their relative share of received financial support. This cost allocation 
methodology and its implementation will ensure an objective, fair and clearly documented 
basis for calculating and allo cating the respective share of all costs to the EU budget or 
Member States receiving RRF loans.  
3.8 Effective communication and investor outreach  
Since the start of the NextGenerationEU funding operations, the Commission has developed a 
comprehensive inves tor relations strategy and a series of tools to connect with its investor 
base:  
- On the day of the presentation of its diversified funding strategy, the Commission  
launched a comprehensive website17 to inform all interested parties, the general public 
and in vestors about its funding operations.  
- The Commission started issuing “EU borrowing for the recovery” newsletters, 
allowing the Commission to communicate to the investor community in a regular and 
transparent manner. The first two editions of the newsletter are available online on the 
EU as a borrow er website, and subscription is open to all interested parties.  
- The Commission reached out actively to investors across the globe through structured 
visits (“road shows”), organised global investor calls in June and September 2021, and 
held three Prim ary Dealer Network meetings.  
- The Commission maintains its own page on the Bloomberg terminal, where it offers 
real time information about its auctions to the investment community.  
                                                 
15 Cyprus, Greece, Italy, Portugal, Romania and Slovenia.  
16 Commission Implementing Decision (EU) 2021/1095 of 2 July 2021 establishing the methodology for 
allocating costs related to borrowing and debt management operations under NextGenerationEU 
C/2021/4864  
17 The EU as a borrower – investor relations | European Commission (europa.eu) . 
 
10 - To keep the wider audience informed about its work, the Commission prepares  and 
disseminates regular press material – always available online on its website, and 
provides real -time information via social media – Twitter, LinkedIn. Commissioner 
Johannes Hahn and European Commission experts regularly spoke to the press to 
provide f urther information.  
- With the help of the European Investment Bank (EIB) the Commission is setting up an 
Investor Relations database, which will help the Commission to manage its 
relationships with investors in a structured way by actively monitoring inves tor 
behaviour and trends, in order to identify necessary market and investor outreach 
actions and produce statistics for management and communication purposes.  
4. Conclusion  
In the past 12 months, the Commission moved from being a small issuer, raising funds to finance 
relatively small lending programmes like the European Financial Stabilisation Mechanism (EFSM) 
and Macro -financial assistance (MFA), to being one of the biggest issuers in euro. It issued EUR 130 
billion during 2021 (EUR 71 billion for NextGener ationEU) and may issue in the region of EUR 150 
billion per annum in the period 2021 -26. 
All infrastructure and processes needed to implement this large -scale funding programme were put in 
place in record time. This allowed NextGenerationEU funding to comm ence on 15 June 2021, two 
weeks after the fulfilment of all legal conditions to start this borrowing programme. All amounts due 
to the EU budget or Member States were paid within six working days of the completion of 
formalities. No delays were experienced . All NextGenerationEU transactions were executed in a 
technically proficient manner and enjoyed very strong market support (order -books being over -
subscribed by 7 -14 times). Transactions were closed on favourable terms (an average of 0.14% cost of 
funding  for the 2021 transactions), and EU bonds now trade on a par with core euro -area sovereigns 
(rather than other SSA issuers).  
These results represent a very encouraging start for the NextGenerationEU programme. The priority 
for the coming years will be to build on this good start and deliver a sust ained high level of execution 
across all transactions.  
In conclusion, NextGenerationEU  gives the EU a powerful tool to fund the recovery and emerge from 
the crisis more resilient, fairer and greener. It has also s trengthened the international role of the euro, 
contributed to the development of European debt capital markets and reinforced the Banking Union, 
by helping banks to diversify regulatory capital. The implementation of the instrument over the 
coming months and years represents an opportunity to consolidate these benefits.  
 
11 Annex. Overview of bond and bill issuances  
 
Figure 1: Overview of the NextGenerationEU (NGEU) syndicated transaction and bond 
auctions  
Instrument  Trading  
Date  Settlement  
Date  Maturity  
 Amount Issued  
 (billion EUR)  
date years  
2021 Q2  
NGEU #1  
syndication  15-06-2021  22-06-2021  04-07-2031  10 20 
NGEU #2  
syndication  29-06-2021  06-07-2021  06-07-2026  5 9 
06-07-2051  30 6 
2021 Q3  
NGEU #3  
syndication  13-07-2021  20-07-2021  04-07-2041  20 10 
NGEU #4  
syndication  14-09-2021  21-09-2021  04-10-2028  7 9 
Bond 
auction #1  27-09-2021  29-09-2021  06-07-2026  5 2.495  
2021 Q4  
NGEU #5  
green bond  
syndication  12-10-2021  19-10-2021  04-02-2037  15.3 12 
Bond 
auction #2  25-10-2021  27-10-2021  04-10-2028  7 2.497  
Total  70.992  
 
  
 
12 Figure 2: Overview of the EU -Bill auctions  
Instrument  Trading  
Date  Disbursement  
Date  Maturity  Amount Issued  
 (EUR)  
date months  
2021 Q3  
EU-Bill 
Auction #1  15-09-2021  17-09-2021  03-12-2021  3 months  2.999.000.000  
04-03-2022  6 months  1.997.000.000  
EU-Bill 
Auction #2  22-09-2021  24-09-2021  03-12-2021  3 months  1.997.000.000  
04-03-2022  6 months  1.996.000.000  
2021 Q4  
EU-Bill 
Auction #3  06-10-2021  08-10-2021  07-01-2022  3 months  2.996.000.000  
08-04-2022  6 months  1.996.000.000  
EU-Bill 
Auction #4  20-10-2021  22-10-2021  07-01-2022  3 months  1.499.000.000  
08-04-2022  6 months  1.499.000.000  
EU-Bill 
Auction #5  03-11-2021  05-11-2021  04-02-2022  3 months  1.497.000.000  
06-05-2022  6 months  1.496.000.000  
EU-Bill 
Auction #6  17-11-2021  19-11-2021  04-02-2021  3 months  998.000.000  
06-05-2022  6 months  994.000.000  
EU-Bill 
Auction #7  01-12-2021  03-12-2021  04-03-2021  3 months  1.495.000.000  
03-06-2022  6 months  1.496.000.000