REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Half-yearly report on the implementation of borrowing, debt management and related lending operations pursuant to Article 13 of Commission Implementing Decision C(2023)8010 1 January 2024 - 30 June 2024
Date: 2024-07-24
Institutions: Directorate-General for Budget, European Commission
Subjects: EU borrowing, EU financing arrangements, Eurobond, bond, debt, financial management, issue of securities

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 24.7.2024  COM(2024) 369 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Half-yearly report on the implementation of borrowing, debt management and related lending operations pursuant to Article 13 of Commission Implementing Decision C(2023)8010                                              1 January 2024 - 30 June 2024                                
 
 
Contents 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

Summary ................................................................................................................................................................................. 3 

Introduction............................................................................................................................................................................ 4 

Implementation of borrowing operations in the first half of 2024 ...................................................... 4 

Cost of funding and liquidity balances .................................................................................................................. 8 

Steps to further develop the ecosystem of EU-Bonds............................................................................... 10 

Other milestones in the first half of 2024 ....................................................................................................... 10 

Issuance outlook for the second half of 2024 ............................................................................................... 11 

EN 

  EN 

 
 
 
 
 
FUNDING RAISED H1 2024

USE OF PROCEEDS

1 

 
 
  
 
 
 
 
OUTSTANDING EU-BONDS  
at 30 June 2024  

Total €513.6 billion

155,5

297,9

60,2

€155.5 bn back-to-back 

€358.1 bn total bonds under the unified funding approach 

of which €297.9 bn bonds 

of which €60.2 bn NextGenerationEU green bonds 

KEY FACTS about H1 2024 

- 6 syndications and 7 auctions to raise EUR 74.2 billion, with an average maturity of around 

14 years. 

- Cost of funding was 3.13%, compared to 3.57% in the second half of 2023. 
- Most funds were used for NextGenerationEU, which makes the EU economy greener, more 

digital, and more diversified in its energy supply. 

- The first payments under the newly established Ukraine Facility took place. This facility will 
provide up to EUR 50 billion in financial support between 2024 and 2027 to help Ukraine in 
its recovery, reconstruction and modernisation efforts. 

- A further EUR 1.85 billion in proceeds were used to finance macro-financial assistance of 
EUR 50 million to North Macedonia and refinance a maturing European financial stability 
mechanism loan of EUR 1.8 billion to Portugal.   

2 

 
 
 
 
 
 
 
1. Summary 

In the first half of 2024, the EU raised EUR 73.8 billion in long-term funding through the execution 
of 6 syndications and 7 auctions, in line with the target included in the funding plan published in 
December  2023.  With  these  issuances,  the  amount  of  EU-Bonds  outstanding  passed  the  half  a 
trillion mark for the first time, standing at EUR 514 billion at end-June. Issuances continued to take 
place  under  the  EU’s  unified  funding  approach,  enabling  the  Commission  to  continue  to  build  a 
single and highly liquid curve in support of a more efficient market access.   

Green bond issuance gathered pace at the same time, with EUR 11.3 billion issued compared to the 
EUR 4.7 billion raised in the preceding period. This was possible due to the increase in the volumes 
of executed and reported green expenditure by Member States, enabling the Commission to raise 
by end-June 2024 over EUR 60 billion worth of NextGenerationEU (NGEU) green bonds. The NGEU 
green  bond  programme  was  further  boosted  by  the  expansion  of  the  pool  of  climate-relevant 
expenditures  that  can  be  financed  by  NGEU  green  bonds.  This  followed  the  update  of  Member 
States’  recovery  and  resilience  plans  to  add  new  climate  relevant  measures  in  the  context  of 
REPowerEU.  The  pool  grew  to  EUR  266  billion  at  the  end  of  June,  up  from  EUR  189  billion  in 
December 2023. 

With the proceeds raised from EU-Bond issuances, the Commission was able to continue to respond 
in  a  timely  and  effectively  way  to  new  EU  policy  priorities  both  inside  the  EU  and  in  its 
neighbourhood.  Specifically  in  the  first  half  of  2024,  EUR  33.6  billion  of  these  proceeds  were 
disbursed  to  implement  NextGenerationEU.  Ukraine  received  EUR 7.9  billion  under  the  newly 
established  Ukraine  Facility.  Under  this  facility, the EU  will provide  up  to  EUR 50  billion1 in  stable 
and  predictable  financial  support  between  2024  and  2027  to  help  Ukraine  in  its  recovery, 
reconstruction  and  modernisation.  A  further  EUR  1.85  billion  in  proceeds  were  used  to  finance 
macro-financial assistance (MFA) of EUR 50 million to North Macedonia and to roll over a European 
financial stability mechanism (EFSM) loan of EUR 1.8 billion to Portugal.  

The  EU’s  cost  of  funding  decreased  in  line  with  market  conditions,  while  also  benefiting  from  a 
tightening of the EU yields versus core European government bonds (EGBs) during the first half of 
2024. Over the course of this period, the 10-year interest rate differential between EU-Bonds and a 
50/50 basket of German/French sovereign bonds fell from 43 basis points at the start to 22 basis 
points  at  the  end.  As  a  result,  the  EU  cost  of  funding  under  the  cost  allocation  methodology2 
decreased to 3.1%, compared to 3.6% for the previous funding period.  

The Commission has also been busy preparing the next steps in its constant drive to enhance the 
functioning and liquidity of the market for EU-Bonds, drawing on the feedback received through the 
June 2023 investor survey. Following the launch of the quoting arrangements in November 2023, 
the  Commission  is  finalising  the  launch  of  a  repurchase  (‘repo’)  facility  for  EU-Bonds  in  early 
autumn.  Through  the  repo  facility,  the  Commission  will  temporarily  lend  specific  EU-Bonds  to  EU 
primary dealers to support them in their market marking activities. In parallel, the Commission has 
implemented  changes  to  its  cost  allocation  methodology  so  it  can  optimise  funding  costs  across 
the increasingly broad range of programmes financed by EU-Bonds. These changes will create the 
possibility  to  structure  the  financing  of  new  programmes  according  to  the  needs  of  these 
programmes  and  detach  it  from  the  financing  structure  required  for  NextGenerationEU-related 
liabilities. 

The Commission has been in contact with leading bond market index managers in order to see if 
the EU’s growth as an issuer should be reflected by the inclusion of EU-Bonds in sovereign indices. 

1 EUR 17 billion in the form of grants and budgetary guarantees and EUR 33 billion in the form of loans. 
2 Commission implementing decision C(2024)1520 establishing the framework for allocating costs related to 
borrowing and debt management operations under the diversified funding strategy. 

3 

 
 
 
Several  index  managers  have  indicated  that  they  will  raise  the  issue  with  investors  and  other 
stakeholders as part of their regular review processes. The first consultation by an index manager 
revealed support for inclusion of EU-Bonds in their sovereign indices but not at the level which the 
index manager considers necessary to justify a change of the index. This index manager will revisit 
the  topic  in  the  first  half  of  2025.  Further  consultations  on  inclusion  of  EU-Bonds  in  sovereign 
indices will  be undertaken by other index managers in the second half of 2024. The Commission 
will  therefore  step  up its efforts  to  promote  the possibilities  that  EU-Bonds  offer  to  investors  as 
highly-rated and liquid euro-denominated assets. 

Finally,  on  24  June  2024 the Commission  announced  its  funding  planning  for  the  second  half  of 
2024,  with  a  target  of  up  to  EUR  65  billion  of  bond  issuance  between  July  and  December.  This 
funding plan reflects the high disbursement needs in the second half of 2024. It also looks further 
ahead  to  2026  as  NextGenerationEU  funding  enters  the  second  half  of  its  planned  lifetime  and 
additional smaller programmes are financed through EU-Bond issuance.  

2. Introduction 

The Commission has been borrowing funds on behalf of the European Union for over 40 years. The 
past 4 years have seen a marked increase in the EU’s bond issuance as it relies on capital markets 
to finance large programmes such as SURE3, NextGenerationEU, and the support to Ukraine (MFA+ 
in  2023  and  the  Ukraine  Facility  starting  from  2024).  On  30  June  2024,  the  EU's  total  debt 
outstanding was over EUR 530 billion, of which EUR 22.3 billion in the form of EU-Bills. 

This  half-yearly  report4  reviews  the  implementation  of  borrowing  operations  between  1  January 
2024  and  30  June  2024.  It  also  provides  an  outlook  for  EU-Bond  issuance  in  the  second  half  of 
2024. This report does not evaluate how the proceeds from EU-Bond issuances are used, including 
for  green  expenditure,  as  this  is  covered  in  separate  reports  under  the  regulations  for  each 
instrument5. 

Further to the recommendation of the European Court of Auditors in June 20236, the annex to this 
report presents indicators that can be used to monitor the implementation of the overarching debt 
management strategy guiding the Commission’s unified funding approach7.   

3. Implementation  of  borrowing  operations  in  the  first  half 

of 2024 

In  the  first  half  of  2024,  the  Commission  continued  to  raise  funds  in  the  markets  through  its 
unified  funding  approach.  In  addition  to  meeting  all  the  disbursement  commitments  on  time, 

3 The European instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE). 
4  Prepared  in  accordance  with  Article  13  of  Commission  Implementing  Decision  C(2023)8010,  which  lays 
down  the  arrangements  for  the  implementation  of  the  unified  funding  approach  for  borrowing  and  debt 
management operations. 
5 See for example the annual reports for the Recovery and Resilience Facility and Macro-Financial Assistance 
and the NextGenerationEU Green Bonds Allocation and Impact report.   
6 Special report 16/2023: NGEU debt management at the Commission and Replies of the Commission 
7 A description of the overarching debt management strategy can be found in the half-yearly report on the 
execution  of  the  EU  borrowing  and  lending  operations  1  January  2023  –  30  June  2023,  see  Fourth  half-
yearly report on the execution of the EU borrowing and lending operations. 

4 

 
 
 
 
 
issuance  amounts  and  maturities  remained  within  the  pre-set  parameters,  and  financing  terms 
were in line with those of an issuer of the EU’s size and rating. The sections below present some of 
the  key  components  of  the  Commission’s  borrowing  and  lending  operations  in  the  first  half  of 
2024. Further indicators used to monitor the implementation of the Commission’s funding strategy 
are discussed in the annex to this report. 

EXECUTION OF FUNDING OPERATIONS IN THE FIRST HALF OF 2024 

In  December  2023,  the  Commission  announced  its  intention  to  issue  EUR  75  billion  in  EU-Bonds 
over the period from January to end-June 2024. Over this period, the Commission raised a total of 
EUR 73.8 billion in EU-Bonds, with an average maturity of around 14 years (compared to 13 years 
for the funding raised in the second half of 2023).  

The  Commission  used  a  mix  of  6  syndications  (57%)  and  7  auctions  (43%),  in  keeping  with  the 
announced target. EU-Bond issuances were spread over the semester, taking into account market 
liquidity conditions while ensuring regular presence in the market.  

During the first half of 2024, NextGenerationEU green bond issuance increased by EUR 11.3 billion 
to EUR 60.2 billion (versus EUR 4.7 billion in the second half of 2023). This was made possible by 
the  increase  in  the  volumes  of  Member  States’  executed  and  reported  green  expenditure  (see 
Section 6). 

Chart 2: Funding raised under the unified funding approach 

* The first two NextGenerationEU transactions took place in June 2021. These have been included in the number for H2 
2021 as they were part of the same funding plan as the transactions that took place in H2 2021. 

All amounts in EUR billion 

The  transactions  in  the  first  half  of  2024  brought  the  total  outstanding  EU-Bonds  to  EUR  514 
billion.  Almost  EUR  360  billion  of  this  amount  has  been  issued  through  the  EU’s  unified  funding 
strategy, launched in June 2021. Of this last  amount, EUR 60.2 billion  was issued in the form of 
NextGenerationEU green bonds.  

In  the  first  half  of  2024,  the  Commission  also  issued  3-month  and  6-month  EU-Bills  through 
auctions  twice  a  month  to  meet  short-term  funding  needs.  The  EU  had  EUR  22.3  billion  credit 
outstanding through EU-Bills at the end of June 2024. 

5 

 
 
 
 
 
 
USE OF PROCEEDS 

On  the  back  of  these  transactions,  the  Commission  continued  the  funding  of  Member  States’ 
recovery and resilience plans through the timely (i.e. within about 6 working days) disbursement of 
proceeds.  

In  the  first  half  of  2024  over  EUR 43  billion  of  the  funding  proceeds  were  used  for  all  policies 
combined. The largest part of the proceeds raised in the first half of 2024 - EUR 33.6 billion - was 
used  to  finance  implementation  of  NextGenerationEU.  Around  EUR 15.7  billion  of  these  proceeds 
were  disbursed  to  17  Member  States  under  the  Recovery  and  Resilience  Facility  (RRF).  Of  this, 
around EUR 10.8 billion was in the form of grants and EUR 4.9 billion in the form of loans. EUR 17.9 
billion of the proceeds financed EU-managed programmes supported by NGEU8. Proceeds from EU-
Bond  issuance  were  also  used  to  make  a  first  disbursement  of  EUR  5.9  billion  to  support  the 
Strategic Technologies for Europe Platform (STEP).  

Overall,  since  the  summer  of  2021,  the  Commission  has  used  its  funding  proceeds  to  disburse 
EUR 293.6  billion  to  support  NextGenerationEU.  This  comprises  EUR 150.7  billion  in  grants  and 
EUR 84.1 billion in loans to Member States under the RRF9 and EUR 58.8 billion for the EU-managed 
NGEU programmes. 

In  addition  to  NextGenerationEU  disbursements,  the  Commission  disbursed  EUR 7.9  billion  to 
Ukraine in the first half of 2024 under the Ukraine Facility. During the first half of 2024, EU-Bond 
issuance  also  financed  an  MFA  loan  of  EUR 50  million  to  North  Macedonia  and  a  roll-over  of  an 
existing EFSM loan to Portugal worth EUR 1.8 billion.  

INVESTOR DEMAND AND SECONDARY MARKET LIQUIDITY 

EU-Bond  issuances  continued  to  enjoy  demand  from  a  balanced  and  diversified  global  investor 
base10, even in volatile market conditions. 

New  issue  premiums  (NIPs)11  demanded  by  investors  as  a  concession  when  the  EU  issues  bonds 
through syndication stood at around 1.2 basis points in the first half of 2024. This is lower than the 
second  half  of  2023  (when  the  figure  was  around  2.5  basis  points)  and  in  line  with  concessions 
offered by other issuers on comparable transactions (measured by size and maturity) during that 
period. 

8 These include Horizon Europe, the InvestEU Fund, ReactEU, the EU Civil Protection Mechanism (RescEU), the 

European Agricultural Fund for Rural Development (EAFRD), and the Just Transition Fund. 

9 An additional EUR 5.5 billion of RRF payments has been financed by other sources (i.e. the Emission Trading 

Scheme (ETS) and the Brexit adjustment reserve (BAR)). 

10 To date, EU issuances have in total attracted more than 1,800 different investors from over 70 different 
countries. Over 60% of investment in EU-Bond syndications has come from investors located in the EU, and 
more  than  20%  has  come  from  international  investors  operating  from  the  UK.  The  remainder  has  come 
from international investors in Asia or other non-EU European countries like Norway and Switzerland. Over 
65%  of  the  EU-Bonds  issued  have  been  going  to  buy-and-hold  investors  (i.e.  fund  managers,  insurance 
companies,  pension  funds  and central  banks / official  institutions).  There  is also  a  good  representation  of 
investors  demanding  different  maturities.  Central  banks  /  official  institutions  and  bank  treasuries  (which 
usually prefer to invest in maturities up to 10 years) account for about 45% of purchases of EU-Bonds in 
the  primary  markets,  while  pension  funds  and  insurance  companies  (which  prefer  maturities  above  10 
years) account for almost 15%. 

11 The NIP is a premium that the issuer pays to persuade investors to  buy its bonds in  the primary market 

rather than in the secondary market.  

6 

 
 
 
 
 
 
Chart 3: Investor split in the first half of 2024 

At the same time, the secondary market liquidity of EU-Bonds further increased in the first quarter 
of  2024.  The  liquidity  of  EU-Bonds  has  increased  substantially  since  the  introduction  on 
1 November  2023  of  quoting  arrangements whereby  EU  primary  dealers  are  encouraged  to  post 
reliable EU-Bond prices on the leading electronic bond trading platforms. Since the introduction of 
these  quoting  arrangements,  daily  trading  volumes  of  EU-Bonds  on  the  main  electronic  trading 
platform have averaged well above EUR 800 million with daily peaks in excess of EUR 2 billion.  

The  Commission  has  also  supported  the  liquidity  of  the  EU  curve  by  tapping  existing  lines, 
alongside creating new ones in order to meet programme needs and investor demand. As a result, 
the  average  amount  outstanding  per  EU-Bond  remained  around  EUR 13  billion  by  the  end  of  the 
semester. The first half of 2004 saw the launch of new 5-year, 10-year and 15-year and 30-year 
conventional EU-Bonds and a new 25-year green EU-Bond. 

7 

 
 
 
 
 
 
 
 
 
Chart  4:  Quarterly  secondary  market  turnover  of  EU  and  European  government  bonds  
(% of outstanding volume) 

Source: European Commission based on data of the Economic and Financial Committee’s (EFC) Subcommittee 
on EU Sovereign Debt Markets (ESDM).  
Note:  The  European  government  bond  (EGB)  market  here  comprises  euro-area  sovereigns,  the  European 
Financial Stability Fund and the European Stability Mechanism. Data are not yet available for Q2 2024. 

4. Cost of funding and liquidity balances 

COST OF FUNDING 

The cost of funding12 for January to June 2024 is estimated at 3.13%. This compares to 3.57% for 
the previous time 6-monthly time compartment (abbreviated to TC in the table below).  

Chart 5: Cost of funding over time compartments 

TC1 

0.15% 

TC2 

1.39% 

TC3 

2.62% 

TC4 

3.26% 

TC5 

3.57% 

TC6 

3.13% 

In  the  first  half  of  2024,  despite  the  ECB  interest  rate  cut  in  June  2024  (the  first  since  2019), 
financial markets reduced their expectations of rate cuts as inflation proved to be more persistent 
than  initially  thought.  As  a  result,  funding  costs  increased  market-wide  during  the  first  half  of 
2024, although remaining below their October 2023 peak. Reflecting this trend, yields on 10-year 
EU-Bonds increased to 3.2%, up from 2.7% at the start of the year.  

12  The  interest  costs  incurred  are  allocated  to  the  budget  and  the  Member  States  receiving  loans  in 
accordance  with  the  methodology  set  out  in  Commission  implementing  decision  C(2024)1520.  This 
methodology  distinguishes  between  three  different  cost  categories:  (i)  cost  of  funding  to  finance  non-
reimbursable  support  and  loan  disbursements  calculated  for  6-monthly  time  compartments;  (ii)  cost  of 
holding and managing liquidity; and (iii) administrative costs. 

8 

 
 
 
 
 
 
Despite  these  market-wide  increases,  yield  spreads  between  the  EU  and  most  EGB  issuers 
tightened  during  the  semester.  For  example,  the  10-year  interest  rate  differential  between 
EU-Bonds and a 50/50 basket of German/French sovereign bonds fell from 43 basis points at the 
start of the semester to 22 basis points at the end. This development was in part due to the closing 
gap between the swap curve and EGB yields. Previously, this gap had caused EU-Bond yields to rise 
compared to Member State yields in 2022 and 2023. 

Chart 6: Yields of 10-year EU-Bonds 

4

3,8

3,6

3,4

3,2

3

2,8

2,6

2,4

2,2

2

LIQUIDITY MANAGEMENT 

The  Commission  maintained  a  regular  and  predictable  presence  in  financial  markets,  in  line  with 
the funding plan announced in December 2023, with planned dates for auctions and syndications. 
Over the first semester of 2024, average liquidity holdings decreased to significantly lower levels 
compared to the previous semester. Average holdings stood at EUR 30.2 billion in the first half of 
the  year,  compared  with  EUR 58.7  billion  in  the  previous  semester.  This  was  primarily  due  to 
sizeable  disbursements  concentrated  at  the  end  of  2023  and  beginning  of  2024,  which  reduced 
cash  holdings  to  EUR 12.4  billion  at  the  start  of  2024.  Due  to  slow  cash  outflows  in  subsequent 
months, cash holdings increased to EUR 50.1  billion at the end of semester. These cash balances 
will be drawn upon in the start of the second half of the year to meet planned disbursement needs. 

The  liquidity  holdings  did  not  translate  into  any  costs  for  the  programmes  supported.  On  the 
contrary, a net income of EUR 81.8 million was earned on the cash holdings from January to June 
2024.  This  income  will  be  shared  proportionately  between  the  EU  budget  and  RRF  loan 
beneficiaries. 

To optimise returns on cash holdings without putting funds at risk, the Commission is setting up its 
capacity to  actively  manage excess liquidity holdings  through the use of  term deposits  with risk-
free  counterparties  and  repurchase  agreements.  This  follows  the  amendment  of  the  governance 
framework for the EU-Bond programme last year.  

9 

 
 
 
 
 
5. Steps to further develop the ecosystem of EU-Bonds 

The June 2023  investor survey  gathered  valuable  feedback from market participants on possible 
steps  to  improve  the  functioning  of  EU-Bond  markets13.  The  Commission  has  taken  several 
measures in line with the survey’s findings, such as introducing quoting arrangements for EU-Bonds 
in November 2023 (see Section 3).  

In  the  first  semester  of  2024  the  Commission  continued  to  work  on  establishing  a  repurchase 
(‘repo’)  facility  to  support  market  participants  in  trading  EU-Bonds,  as  announced  in  December 
2022. A repo facility is a tool commonly used by sovereign issuers to support the market-making 
activity of their primary dealers. Through the repo facility, the Commission will make its securities 
available  on  a  temporary  basis  in  the  event  of  scarcity,  thus  providing  primary  dealers  with  the 
necessary assurance for their market-making activities by reducing significantly risks of unsettled 
(short)  positions.  This  backstop  facility  to  primary  dealers  posting  prices  in  EU-Bonds  will  further 
boost the liquidity of EU-Bonds in the secondary market. 

The launch of the repo facility is expected to take place in early autumn, once the implementation 
set-up with the selected counterparties has been finalised.  

6. Other milestones in the first half of 2024 

INCREASED POOL OF ELIGBLE GREEN EXPENDITURE 

Following NextGenerationEU green bond issuance in the second half of 2023 amounting to EUR 4.7 
billion, green bond issuance increased to EUR 11.3 billion in the first half of 2024 (see Section 3). 
The total NextGenerationEU green bonds issued since the programme’s launch in 2021 has risen to 
EUR 60.2  billion  (versus  EUR 48.9  billion  at  end-2023).  This  increased  issuance  was  backed  by  a 
significant  increase  in  executed  and  reported  expenditures  by  Member  States  on  climate-transition-
relevant measures, which went up from EUR 26 billion at end-2023 to EUR 43 billion at end-June 2024. 

The NextGenerationEU green bond programme was further boosted by an increase in the total pool 
of planned expenditure eligible for financing from NGEU green bonds following the update of the 
national  recovery and resilience plans under the REPowerEU  programme. Member States  updated 
their  recovery  and  resilience  plans  to  accelerate  the  green  transition.  As  a  result  of  these 
developments, at the end of June 2024 the pool of planned eligible expenditures stood at EUR 266 
billion, up from EUR 189 billion on 31 December 2023. 

These  developments  will  allow  continued  steady  roll-out  of  the  NextGenerationEU  green  bond 
programme in the second half of 2024. 

CHANGES IN THE COST ALLOCATION DECISION 

July 2024 saw the amendment of the cost allocation decision14, which lays down the methods used 
to  calculate  cost  of  funding,  liquidity  management  and  administrative  costs  for  programmes 
financed  through  the  unified  funding  approach.  This  was  to  reflect  the  introduction  of  new 
borrowing programmes under the diversified funding strategy such as the Ukraine Facility and the 
Western Balkan Facility.  

13 More detailed information on the outcomes of the survey can be found on the Commission here. 
14 Commission implementing decision C(2024)1520 establishing the framework for allocating costs related to 
borrowing and debt management operations under the diversified funding strategy. 

10 

 
 
 
 
The amendment introduces the concept of programme compartments to organise and monitor the 
allocation of disbursements and related funding instruments per policy. This amendment  provides 
flexibility on the maturity profile of funding of the different programmes in view of their respective 
financial structures. This gives the EU the possibility to differentiate the maturities of issuance to 
finance new programmes or NextGenerationEU. 

7. Issuance outlook for the second half of 2024 

On  24 June  2024,  the  Commission  announced  its  intention  to  issue  up  to  EUR 65  billion  in 
EU-Bonds in the second half of 2024, bringing the 2024 total EU issuances to up to EUR 140 billion 
(relative to the EUR 120 billion funding target in 2023). 

These funding volumes are part of the planned progression of EU-Bond issuance towards volumes 
in the region of EUR 150 – EUR 160 billion in 2025 and 2026. This is to finance the wider range of 
EU policy programmes (e.g. NextGenerationEU, support to Ukraine, the Reform and Growth Facility 
of  the  Western  Balkans  Facility  and  macrofinancial  assistance  programmes).  Amounts  raised 
through EU-Bond issuance will be supplemented by short-term funding through EU-Bills and other 
short-term funding tools, with the EU-Bill programme continuing to increase in the second half of 
2024.  Execution  of  these  funding  operations  will  require  continuous  market  presence  throughout 
the semester through syndicated transactions and auctions.  

11 

 
 
 
Annex:  Implementation indicators  on  the  use of  the  means  of  delivering  against the  Commission’s  overarching  debt-management  strategy’s 
efficiency and effectiveness objectives 

Means 

Indicator 

Value in H1 2024 (unless 
indicated otherwise) 

Commentary on execution in H1 2024 

Implementation 
of the EU-Bond 
programme 

a)  Regular issuances across the curve 
Regular EU-Bond (and NGEU green bond) 
issuances in all maturities across the 
curve (up to 30 years) to provide 
different types of investors with 
investment opportunities. This is a way 
of maintaining strong investor demand 
and thus the flexibility to determine 
issuance volumes and maturities for 
individual transactions based on market 
conditions. 

i.  Maturity split of 

issuance programme 

ii.  Timely distribution of 

issuances 

iii.  Green issuances15 

1-4 years: 15% 
4-8 years: 17%  
8-12 years: 22% 
12-17 years: 11% 
17-23 years: 11% 
23-31 years: 24% 

6 syndications and 7 bond 
auctions, resulting in 2-3 
issuances per month. 

Approximately EUR 11 billion 
through the new issuance of a 
2050 bond and taps of 2048 
and 2033 bonds. 

b)  Achieving a proper balance of 
auctions and syndications 

i.  Split auction / 

syndication in %  

43% of bond issuances via 
auction.  

Use of different funding techniques with 
a proper balance, depending on total 
issuance volumes and market conditions, 
in order to manage execution risks, 
improve secondary market liquidity and 
improve borrowing costs. 

15 Additional information on NGEU green bonds can be found in the NGEU Green Bond Dashboard. 

12 

In  H1  2024  the  Commission  pursued  its  objective  through 
regular  bond  issuances  across  different  tenors  to  provide 
the  EU  curve  with  liquidity  on  all  segments.  The  funding 
transactions  were  spread  over  the  semester  to  ensure  a 
regular  presence  in  the  market.  Over  the  semester,  a 
greater  number  of  transactions  were  made  than  in  the 
previous semester due to the H1 2024 funding target of up 
to  EUR  75  billion  (compared  with  EUR  40  billion  in  H1 
2023). 

While  ensuring  a  presence  in  all  benchmark  maturity 
buckets,  the  issuances  were,  on  average,  geared  slightly 
towards  the  long-end  of  the  curve  (with  an  average 
maturity  of  issuances  of  around  14  years),  in  light  of  the 
need  to  spread  redemptions  over  time  but  also  stronger 
demand from investors for long-dated EU-Bonds. 

Green  bond  issuance  was  higher  than  in  the  previous 
semester,  in  line  with  the  higher  overall  funding  target, 
cumulative reported green expenditures by Member States, 
and  appropriate  calibration  of  green  bond  issuances  to 
these expenditures.  

In  H1  2024,  the  Commission  issued  43%  of  the  EU-Bonds 
via  auction,  in  line  with  the  share  in  the  previous  funding 
semester 

 
 
 
 
 
Means 

Indicator 

c)  Establishment of large and liquid 

i.  Issuances via new 

benchmark bonds 

Tapping of EU-Bonds to bring the 
outstanding volume of different lines to 
levels commensurate with large and 
liquid benchmark lines. 

Value in H1 2024 (unless 
indicated otherwise) 

• 

• 

EUR 30 billion via new 
bonds  
EUR 43.8 billion via taps 

bonds vs volume issued 
via taps 

ii.  Speed of tapping of new 

1-2 months 

bonds16 

iii.  Average size of 

outstanding bonds17 

iv.  Turnover relative to 
issuance volume 

v.  Absolute turnover 

Around 13 billion 

Approximately 108% between 
January-May 2024 vs 92% 
over H2 2023. 

EUR 544 billion between 
January-May 2024 vs EUR 397 
billion in H2 2023. 

d)  Management of the maturity profile 

i.  Average maturity of 

Around 14 years  

of EU-Bond issuances with due regard 
to: 

•  the temporary additional headroom 
(for NGEU-related borrowing) and 
permanent headroom (for MFA+) 
under the EU budget 
•  the future redemption of 

disbursements in any given year  

•  stable future roll-over needs 
•  the need to protect the EU’s rating 

to ensure low borrowing costs in the 
long run and strong demand from 
its core investor base. 

issuance  

ii.  Average time to 

Around 12 years 

maturity of outstanding 
debt 

iii.  Refinancing in the short 
term, i.e. percentage of 
outstanding stock of 
bonds and bills 
maturing in the next 12 
months 

iv.  Refinancing in the medium 
term, i.e. percentage of 
outstanding stock of 
bonds and bills maturing 
in the next 5 years 

Less than 11 % 

Less than 37 %. 

Commentary on execution in H1 2024 

To support the liquidity of EU securities, the Commission used 
its 
lines,  with 
tap  existing 
approximately 59% of the funding volume mobilised via taps. 

transactions 

funding 

to 

New funding lines were launched to provide the market with 
new benchmark lines where needed on the curve and based 
on the recommendations of the EU primary dealers. New 3-
year,  10-year,  15-year,  25-year  and  30-year  bonds  were 
launched during the semester.  

As  a  result,  the  average  amount  outstanding  per  bond 
remained  at  around  EUR  13  billion  by  the  end  of  the 
semester, ensuring the bonds’ consistent liquidity. 

In  H1  2024,  the  EU-Bond  issuances  had  an  average 
maturity of 14 years. This reflected the need to spread the 
redemption  profile  over  time  while,  at  the  same  time, 
attracting investors to EU primary market transactions. The 
average  maturity  remained  below  the  maximum  average 
maturity  of  17  years  set  out  in  the  annual  borrowing 
decision for 2024. 

The average time to maturity of outstanding debt remained 
stable (at around 12 years). 

Refinancing  also  remained  stable,  a  reflection  of  the  past 
issuances and related to the redemption profile. 

16 Based on the average number of months between new issuance and first tap when considering the new lines tapped over the semester. 

17 Outstanding bonds over number of bonds as at end of semester. Based on bonds issued under the diversified funding strategy. 

13 

 
 
 
 
 
 
 
 
 
 
 
 
 
Means 

Indicator 

Value in H1 2024 (unless 
indicated otherwise) 

Commentary on execution in H1 2024 

Implementation 
of the EU-Bill- 
programme 

Liquidity 
management 

Primary dealer 
network 

Regular issuance of EU-Bills with 
maturities of up to 1 year via auction to 
attract additional investors (or additional 
portfolios of existing investors) and 
support liquidity management. 

Management of a liquidity pool in view 
of payment obligations, disbursement 
needs and costs of cash holding, with 
due regard to prevailing market 
conditions. 

Attracting  a  wide  range  of  financial 
institutions  showing  strong  commitment 
to supporting the EU issuances. 

Communication 
with diverse 
market 
stakeholders and 
peer issuers  

Maintaining and building trust with 
investor base, market participants and 
peer issuers to support demand for EU 
debt and improve the EU’s 
understanding of market dynamics and 
investor needs. 

i.  Outstanding volume of 

EUR 15-22 billion 

EU-Bills 

ii.  Number of EU-Bill 

12 

auctions 

i.  Number of payment 

None 

failures due to lack of 
liquidity 

Outstanding  debt  under  the  EU-Bill  programme  increased 
slightly from around EUR 15 billion to around EUR 22 billion 
over the period. This reflected the ongoing development of 
the  programme  as  a  tool  for  providing  additional  liquidity 
when needed. 

The  Commission  met  all  disbursement  needs  and  there 
were no settlement failures during the semester. 

The  Commission  continued  to  be  supported  by  EU  primary 
dealers  and  rotation  of  primary  dealers  that  are  joint  lead 
managers  at  the  syndications  helped  the  Commission  to 
make  best  use  of  all  banks  eligible  to  be  part  of  a 
syndicate. 

regular  and  predictable 
The  Commission  maintained 
communication  with  the  markets,  in  line  with  previous 
announcements.  

Over  the  semester  a  reduced  allocation  of  EUR  2  billion 
occurred  due  to  the  securing  of  attractive  financing 
conditions in the bond auctions. 

The  Commission  regularly  published  investor  statistics 
which remained stable and continued to see an increase in 
its diversified investor base. 

i.  Number of institutions 

which signed 
underwriting 
commitments for 
transactions over the 
past 6 months 

i.  Deviations from the pre-
announced timings for 
the publication of 
funding plans  

19 (compared to 16 in H2 
2023) 

None 

ii.  Deviation from the 

volumes announced in 
the funding plan  

Less than EUR 2 billion or less 
than 2% (compared with less 
than 6% in H2 2023). 

iii.  Investor distribution 

statistics 

Per type: bank treasuries 
28.2 %, fund managers 24.3%, 
insurance and pension funds 
20.7%, central banks/official 
institutions 18.0%, banks 6.5%, 
hedge funds 1.8% 
Per country/region: UK 16.6%, 
France 14.1%, Benelux 12.2%, 
Iberia 11.5%, Germany 11.0%, 
Nordics 9.7%, other EU 9.2%, 
Italy 6.9%, Asia-Pacific 3.6%, 
other Europe 1.9%, Americas 
1.7%, Middle East and Africa 
1.6% 

14