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 July 2024 to 31 December 2024
Date: 2025-03-12
Institutions: Directorate-General for Budget, European Commission
Subjects: EU aid, EU borrowing, EU financing arrangements, EU strategy, bond, debt, financial management, issue of securities, macro-financial assistance

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 12.3.2025  COM(2025) 70 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 July 2024 to 31 December 2024                                      
 
 
Table of Contents 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

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

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

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

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

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

Other milestones in the second half of 2024 ................................................................................................ 11 

Issuance outlook for the first half of 2025 ..................................................................................................... 12 

EN 

  EN 

 
 
 
 
 
FUNDING RAISED in H2 2024 

USE OF PROCEEDS 

Total NextGenerationEU 
€72.2 billion 

H2 2024 

Total NextGenerationEU 
€365.8 billion 

Since the start of the programme 

All amounts in EUR billion 

1 

 
 
 
 
 
 
 
 
 
 
 
 
OUTSTANDING EU-BONDS  
at 31/12/2024  

€ 47.8 bn back-to-back 

€430.4 bn total bonds under the unified funding approach 

of which €362.2 bn conventional EU-Bonds 

of which €68.2 bn NextGenerationEU green bonds 

KEY FACTS about H2 2024 

- Four syndications and six auctions raised EUR 64.3 billion, with an average maturity of around 

12 years, bringing the total of long-term funding raised in 2024 to EUR 138.1 billion. 
- Most of the funds were used for NextGenerationEU (EUR 72.2 billion) with additional 

disbursements under the Ukraine Facility (EUR 5.2 billion) and under the macro-financial 
assistance (MFA) loan programmes to Egypt (EUR 1 billion) and Moldova (EUR 95 million). 
- The cost of funding was 2.97% for NextGenerationEU (compared with 3.19% in the first half 

of 2024), and 2.68% for the Ukraine Facility and the MFA for Egypt. 

2 

                    €              
 
 
 
 
 
 
 
1. Summary 

In  the  second  half  of  2024,  the  EU  raised  EUR  64.3  billion  in  long-term  funding  through  four 
syndications  and  six  auctions,  in  line  with the target  in the  funding  plan  published  in  June  2024. 
EUR 8 billion of  that EUR 64.3 billion in  long-term funding was raised through NextGenerationEU 
(NGEU)  green  bonds.  Together  with  the  EUR  73.8  billion  raised  in  the  first  half  of  2024,  those 
issuances  brought  the  total  long-term  funding  raised  in  2024  to  EUR  138.1  billion  –  the  highest 
amount  in  bonds  issued  by  the  EU  in  a  single  year.  By  the  end  of  2024,  the  EU  had  EUR  578.2 
billion in EU-Bonds outstanding (with an average remaining maturity of about 12 years), of which 
EUR 68.2 billion was in the form of NGEU green bonds.  

The  proceeds  raised  from  EU-Bond  issuances  enabled  the  Commission  to  continue  to  respond  to 
policy priorities within the EU and its neighbourhood. Specifically, in the second half of 2024, EUR 
72.2  billion  of  those  proceeds  were  disbursed  to  implement  NGEU  investments  and  reforms. 
Ukraine received EUR 5.2 billion under the Ukraine Facility, and a further EUR 1.1 billion in proceeds 
were  used  to  finance  EUR  1  billion  and  EUR  95  million  in  macro-financial  assistance  (MFA)  for 
Egypt and Moldova respectively. 

The EU’s cost of funding1 continued to decrease to 2.97%, compared with 3.19% for the previous 
funding period. The reduction in the EU’s overall cost of funding was explained by more favourable 
market conditions and a tightening of the EU yields versus core European government (EGB) bonds 
during the semester. The 10-year interest rate differential between EU-Bonds and a 50/50 basket 
of German/French sovereign bonds declined from 25 basis points at the start of the second half of 
2024 to 12 basis points by December 2024.  

The Commission also took further steps to support the functioning and liquidity of the market for 
EU-Bonds. In October 2024, it launched a repurchase (repo) facility for EU-Bonds aimed to support 
EU primary dealers when posting quotes for EU-Bonds on electronic trading platforms. 

These major developments from the side of the EU, coupled with the consolidation of EU issuances 
under  the  unified  funding  approach  have  enabled  market  participants  to  take  independent 
initiatives that could further support the functioning of the EU-Bond market. In the second half of 
2024,  this  included  the  launch  of  an  index-based  futures  contract  on  EU-Bonds  in  December  as 
well  as  the  announcement  of  renewed  interest  in  the  launch  of  a  traditional  (physically-settled) 
futures contract in 2025 by a leading European exchange. 

The  publication  of  the  2024  edition  of  the  annual  NextGenerationEU  Green Bonds  Allocation  and 
Impact report was another highlight in the second half of 2024. It provides updated information on 
the  allocation  of  proceeds  from  issuing  NGEU  green  bonds  and  on  their  estimated  realised  and 
expected  climate  impacts.  The  report documents (i) the increased issuance  of NGEU  green bonds 
(bringing outstanding NGEU green bond debt to EUR 68.2 billion), (ii) progress in implementation of 
climate-relevant  expenditure  financed  by  NGEU  green  bonds,  and  (iii)  an  increase  in  the  pool  of 
eligible NGEU green bond expenditures following the integration of the REPowerEU programme (the 
REPowerEU programme now amounts to EUR 264 billion). 

Finally on 10 December 2024, the Commission announced its funding planning for the first half of 
2025, with includes a target of issuing up to EUR 90 billion in bonds between January and the end 
of June. An indicative funding level of EUR 160 billion of EU-Bonds is expected in 2025. Three-leg 
bond  auctions  will  be  introduced  as  early  as  the  first  half  of  2025  to  facilitate  the  increased 
issuance of long-term bonds. To complement the EU funding needs, long-term funding will also be 

1 In accordance with the cost allocation methodology as set out in Commission  Implementing Decision (EU) 
2024/1974. 

3 

 
 
 
supplemented  by  issuing  short-term  debt,  also  through  introducing  a  new  12-month  EU-Bill  in 
January 2025. 

2. Introduction 

The Commission has been borrowing funds on behalf of the European Union for over 40 years. The 
past  five  years  have  seen  a  marked  increase  in  the  EU’s  bond  issuance  as  it  relies  on  capital 
markets to finance large programmes such as SURE2, NextGenerationEU (NGEU), and the support to 
Ukraine  (MFA+  in  2023,  the  Ukraine  Facility  in  2024,  and  the  MFA  loan  under  the  Ukraine  Loan 
Cooperation Mechanism starting in 2025). At 31 December 2024, the EU's total outstanding debt 
was just over EUR 600 billion, of which EUR 23.1 billion in the form of EU-Bills. 

This half-yearly report3 reviews the implementation of borrowing operations between 1 July 2024 
and 31 December 2024. The report also provides an outlook for EU-Bond issuance in the first half 
of  2025.  It  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 instrument4. 

Further to the recommendation of the European Court of Auditors (ECA) in June 20235, 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 approach6.   

3. Implementation of borrowing operations in the second half 

of 2024 

In  the  second  half  of  2024,  the  Commission  continued  to  raise  funds  in  the  markets  using  its 
unified  funding  approach. In  addition to  meeting  all the  disbursement  commitments  on  time,  the 
amounts  and  maturities  of  the  bonds  issued  remained  within  the  pre-set  parameters,  and  the 
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 
second 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 SECOND HALF OF 2024 

In line with the funding plan for 1 July to 31 December 2024, the Commission raised a total of EUR 
64.3 billion in EU-Bonds, with an average maturity of around 12 years (compared with 14 years for 
the  funding  raised  in  the  first  half  of  2024).  During  the  second  half  of  2024,  NextGenerationEU 
green bond issuance was EUR 8 billion, bringing the total value of outstanding green bonds to EUR 
68.2 billion, making the EU the 5th largest issuer of green bonds globally. 

2 The European instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE). 
3  Prepared  in  accordance  with  Article  13  of  Commission  Implementing  Decision  C(2023)8010,  which  lays 
down the arrangements for implementing the unified funding approach for borrowing and debt management 
operations. 
4 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.   
5 Special report 16/2023: NGEU debt management at the Commission and Replies of the Commission 
6 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 from 1 January 2023 to 30 June 2023, see the fourth 
Half-yearly report on the execution of the EU borrowing and lending operations (europa.eu). 

4 

 
 
 
The Commission used a mix  of  four syndications (58% of the amount raised)  and  eight auctions 
(42%  of  the  amount  raised),  in  keeping  with  the  announced  target.  EU-Bonds  were  issued  at 
regular  intervals  over  the  six-month  period,  taking  market  liquidity  conditions  into  account  while 
ensuring a regular presence in the market.  

Chart 2: Funding raised under the unified funding approach 

66

5

35

15

35

15

47

31

24

14

42

32

37

27

H2 2021*

H1 2022

H2 2022

H1 2023

H2 2023

H1 2024

H2 2024

Through auctions

Through syndications

* The first  two NextGenerationEU transactions took place in June 2021. These have been included in the  figure 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 second half of 2024 brought the total amount of outstanding EU-Bonds to 
EUR 578.2 billion, of which EUR 430.4 billion was issued through the EU’s unified funding strategy, 
launched  in  June  2021.  Of  this  last  amount,  EUR  68.2  billion  was  issued  in  the  form  of 
NextGenerationEU green bonds.  

In the second half of 2024, the Commission also issued 3-month and 6-month EU-Bills through bi-
monthly auctions to meet short-term funding needs. At the end of December 2024, the EU had EUR 
23.1 billion credit outstanding through EU-Bills. 

DISBURSEMENTS 

On the back of these transactions, the Commission continued to fund Member States’ recovery and 
resilience plans through the timely disbursement of proceeds (within six working days). 

Overall, in the second half of 2024 the Commission disbursed a total of around EUR 78.5 billion for 
all policies combined, which it funded in part with funds that had already been raised in H1 2024. 
Of the funds raised during this period, EUR 72.2 billion was disbursed to finance NextGenerationEU. 
Of that amount, EUR 61.7 billion was used to finance Member States’ recovery and resilience plans 
under  the  Recovery  and  Resilience  Facility  (RRF).  This  in  turn  can  be  broken  down  into  EUR  37.2 
billion in the form of grants to 15 Member States and EUR 24.5 billion in the form of loans to 9 

5 

 
 
 
 
 
Member  States.  The  remaining  EUR  10.5  billion  was  used  to  finance  EU-managed  programmes 
supported by NextGenerationEU7. 

Overall,  since  the  summer  of  2021,  the  Commission  has  disbursed  EUR  375.4  billion  to  support 
NextGenerationEU.  This  comprises,  EUR  197.4  billion  in  grants  and  EUR  108.7  billion  in  loans  to 
Member States under the RRF, and EUR 69.3 billion for the EU-managed NGEU programmes. Of the 
total EUR 375.4 billion in support for NGEU, EUR 365.8 billion has been financed by issuing debt8. 

In addition to NGEU disbursements, the Commission disbursed EUR 5.2 billion to Ukraine during the 
second  half  of  2024  under  the  Ukraine  Facility,  bringing  the  total  disbursed  under  the  Ukraine 
Facility  in  2024  to  EUR  13.1  billion.  During  the  second  half  of  2024,  EU-Bond  issuance  also 
financed MFA loans of EUR 1 billion to Egypt and of EUR 95 million to Moldova.  

INVESTOR DEMAND AND SECONDARY MARKET LIQUIDITY 

EU-Bond  issuances  continued  to  enjoy  demand  from  a  balanced  and  diversified  global  investor 
base9. 

Chart 3: Breakdown of Investors in syndicated transactions executed in H2 2024 

Distribution by investor type

25,1%

22,5%

21,9%

20,5%

Central banks / official institutions

Fund managers

Bank treasuries

Insurance and pension funds

7,3%

2,6%

Banks

Hedge funds

7  These  include  the  Strategic  Technologies  for  Europe  Platform  (STEP),  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. 

8 An additional EUR 9.6 billion in NGEU expenditures was financed by other sources (i.e. the Emissions Trading 

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

9 To date, EU-Bonds issued via syndications have in total attracted more than 1,900 different investors from 
over  70  different  countries.  Over  65%  of  investment  in  EU-Bond  syndications  has  come  from  investors 
located  in  the  EU,  and  almost  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 obtained by 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  wanting  different  maturities.  Central  banks  /  official  institutions  and  bank 
treasuries (which usually prefer to invest in bonds with maturities of up to 10 years) account for about 47% 
of  purchases  of  EU-Bonds  in  the  primary  markets  in  syndicated  transactions,  while  pension  funds  and 
insurance companies (which prefer maturities of above 10 years) account for over 20%. 

6 

 
 
 
 
 
 
Distribution by country / region

19,4%

12,4%

11,7%

9,2% 8,8% 8,2% 8,1% 7,9% 7,4%

UK

Nordics

France

Benelux

Italy

APAC

Germany

Iberia

Other EU

2,6% 2,2% 2,0%

Other Europe, non-EU

Americas

Middle-East and Africa

The new issue premium (NIPs)10 demanded by investors as a concession when the EU issues bonds 
through syndication averaged around 2.1 basis points in the second half of 2024. While that was 
higher than the levels in the first half of 2024 (when the average NIP was around 1.2 basis points), 
the  H2  2024  levels  remained  in  line  with  other  issuers’  concessions  on  comparable  transactions 
(measured by size and maturity), reflecting higher volatility in the third quarter of 2024. 

At the same time, the secondary  market liquidity of EU-Bonds in H2 2024 was somewhat higher 
than in H1 2024. The quoting arrangements in place since November 2023  (whereby EU  primary 
dealers  are  encouraged  to  post  reliable  EU-Bond  prices  on  the  leading  electronic  bond  trading 
platforms) continued to support the liquidity of EU-Bonds. 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  also  supported  the  liquidity  of  the  EU-Bond  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 stood at around EUR 14.8 billion at the end of 2024, 
up from EUR 13 billion at the end of H1 2024. New 5 and 7-year lines were also launched in the 
second half of 2024. 

10 This new issue premium (NIP) is a premium that the issuer pays in order to persuade investors to buy its 

bonds in the primary market rather than in the secondary market.  

7 

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

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

1

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

2020

2021

2022

2023

2024

EU market

EGB market* (average)

Source: European Commission based on data of the Economic and Financial Committee’s Subcommittee on 
EU Sovereign Debt Markets (ESDM).  
Note:  Here, the  European  government bond (EGB)  market comprises  bonds issued by  euro-area sovereigns, 
the European Financial Stability Fund and the European Stability Mechanism. Data  are not yet available for 
Q3 and Q4 2024. 

4. Cost of funding and liquidity balances 

COST OF FUNDING 

The cost allocation methodology under the diversified funding strategy  allows the Commission to 
link  the  costs  of  funding  charged  to  beneficiaries  (the  EU  budget  or  loan  beneficiaries)  to  the 
conditions  obtained  in the  market  when  the disbursements  were  financed11.  In  addition,  as  of  30 
September 2024, this methodology allows borrowing costs to be allocated on a programme-related 
basis. This reflects the increased number of policy programmes funded by the diversified funding 
strategy under the unified funding approach.   

11 For NextGenerationEU, the interest costs incurred are allocated to the EU budget and the Member States 
receiving  loans  in  accordance  with  the  methodology  set  out  in  Commission  Implementing  Decision  (EU) 
2021/1095  and  its  successors  Commission  Implementing  Decision  (EU)  2022/9701  and  Commission 
Implementing  Decision  (EU)  2024/1974.  This  methodology  distinguishes  between  three  different  cost 
categories: (i) the cost of funding to finance non-reimbursable support and loan disbursements calculated 
for six-monthly time compartments, (ii) the cost of holding and managing liquidity, and (iii) administrative 
costs.  Compartmentalisation  per  programme  has  been  possible  since  Commission  Implementing  Decision 
(EU,  Euratom)  2024/1974  entered  into  force  in  the  second  half  of  2024.  To  avoid  any  retroactive  effect, 
programmes  that  were  funded  and  disbursed  prior  to  the  implementation  of  this  methodology  (such  as 
MFA+  loans  to  Ukraine  and  exceptional  bridge-financing  under  the  Ukraine  Facility)  remain  pooled  with 
NGEU borrowing and lending operations under the unified funding approach. 

8 

 
 
 
 
 
In line with this methodology, the cost of funding for NGEU payments in the July to December 2024 
time compartment (‘TC7’ in the table below) is estimated at 2.97%, compared with 3.19% for the 
previous  time  6-monthly  time  compartment.  The  cost  of  funding  for  disbursements  under  the 
Ukraine Facility and the MFA Egypt programme stood at 2.68% at the end of December 2024. The 
lower  funding  costs  for  these  policies  compared  to  NextGenerationEU  reflects  the  fact  that  they 
can be  funded using bonds with shorter average maturities than those used to finance NGEU,  as 
NGEU’s  repayment  profile  (and  therefore  average  maturities)  has  to  respect  the  dedicated 
temporary ‘own resources’ ceiling. 

Chart 5: Cost of funding 

NextGenerationEU 

TC1 

TC2 

TC3 

TC4 

TC5 

TC6 

TC7 

0.15% 

1.38% 

2.61% 

3.27% 

3.63% 

3.19% 

2.97% 

Ukraine Facility 

2.68% 

MFA Egypt 

2.68% 

The  further  reduction  in  funding  costs  during  the  second  half  of  2024  reflected  wider  market 
conditions and a tightening of the EU-Bond yields versus European government bonds yields during 
the  six-month  period.  Interest  rates  on  EU-Bonds  declined  by  around  33  basis  points  over  the 
second half of 2024, falling from 3.23% on 1 July 2024 to 2.90% on 31 December 2024 for a 10-
year  bond.  These  developments  were  supported  by  the  European  Central  Bank’s  three  25-basis-
point interest rate cuts over the course of the second half of 2024. Yield spreads between the EU 
and most EGB issuers tightened during the second half of 2024. For example, the 10-year interest 
rate  differential  between  EU-Bonds  and  a  50/50  basket  of  German/French  sovereign  bonds  fell 
from  around  25  basis  points  at  the  start  of  the  semester  to  12  basis  points  at  the  end  of  the 
semester.  

9 

 
 
 
 
 
 
 
 
 
Chart 6: Yields of 10-year EU-Bonds 

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  the  financial  markets,  in  line 
with  the  funding  plan  announced  in  June  2024.  Over  the  second  half  of  2024,  average  liquidity 
holdings  increased  compared  with  the  first  half  of  2024,  primarily  due  to  disbursements 
concentrated at the end of 2024 and beginning of 2025. As a result, average cash holdings stood 
at EUR 50.7 billion in the second half of the year, compared with EUR 28.2 billion in the first half of 
2024. Cash holdings fell to EUR 33.8 billion at the start of 2025, after peaking at EUR 76.9 billion 
in  the  beginning  of December  2024  (before  disbursements  of  almost  EUR  43  billion  in the  three 
following weeks). The remaining end-of-year cash balances will be drawn upon at the start of 2025 
to meet planned disbursement needs. 

These liquidity holdings did not translate into costs for the programmes supported. On the contrary, 
excess cash holdings were subject to active liquidity management throughout H2 2024 to optimise 
returns on cash holdings without incurring any counterparty risk. Supported by this active liquidity 
management,  a  net  income  of  EUR  58.1  million  was  earned  on  the  cash  holdings  from  July  to 
December 2024. Cumulated with the earnings in the first half of 2024, annual earnings on liquidity 
holdings  stood  at  EUR 139.9  million  at  year  end.  This  income  will  be  shared  proportionately 
between  the  EU  budget  and  loan  beneficiaries,  notably  Member  States  under  the  RRF  loan 
programme.  

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

In  October  2024, the Commission  launched  a  repurchase  agreement  (repo)  facility  for  EU-Bonds, 
which enables the EU to offer its primary dealers the possibility to source specific EU-Bonds on a 
temporary basis. The facility  aims to help EU primary dealers post firm and public quotes on EU-
Bonds  so  that  investors  can  be  confident  in  the  terms  on  which  they  can  trade  EU-Bonds  in  the 
secondary market, which will improve the efficiency and liquidity of the market for EU-Bonds. 

The  creation  of  the  repo  facility  follows  in  the  footsteps  of  many  large  issuers  who  offer  this 
service  to  their  primary  dealers  and  is  a  natural  next  step  in  the  deepening  of  the  market 

10 

 
 
 
 
ecosystem  for  EU-Bonds.  With  the  launch  of  the  scheme,  the  EU  has  met  the  last  of  the 
commitments  made  in  December  2022  on  the  steps  to  build  capacity  to  support  the  EU-Bond 
market. 

The  ongoing  development  of  the  ecosystem  for  EU-bonds,  coupled  with  the  consolidation  of 
funding  volumes  under  the  unified  funding  approach  (in  place  since  January  2023)  have  also 
enabled  market  participants  to  take  independent  initiatives,  which  could  further  support  the 
functioning of the EU-Bond market.  

These independent initiatives included the launch of a futures contract based on an index  of EU-
Bonds  in  December  2024.  A  leading  European  exchange  announced  its  renewed  interest  in 
launching  a  traditional  (physically-settled)  EU-Bond  future  on  the  market  in  the  course  of  2025. 
The availability of these futures contracts will further support investment in EU-Bonds by allowing 
market participants to hedge open positions on EU-Bonds and assess market expectations of EU-
bond  pricing.  Index  providers  continued  to  reflect  on  how  to  best  classify  EU-Bonds  in  different 
indices with a second index manager communicating that, following a consultation of index users, it 
was not yet ready to include EU-Bonds in its relevant sovereign indices, but that it would reassess 
the situation later.  

6. Other milestones in the second half of 2024 

2024 NGEU GREEN BONDS ALLOCATION AND IMPACT REPORT 

Three  years  after  the  first  green  bonds  were  issued  in  October  2021,  the  NGEU  green  bond 
issuances at end-2024 stood at more than EUR 68 billion. These bonds were issued on the basis of 
an already reported and validated climate-relevant expenditure of EUR 53 billion and a total pool 
of  EUR  264  billion  worth of  climate-relevant  expenditure  contained in  Member  States’  plans that 
are funded by the RRF. 

In  line  with  the  reporting  requirements  of  the  NGEU  green  bond  framework,  the  Commission 
published  its  2024  edition  of  the  annual  NextGenerationEU  Green  Bonds  Allocation  and  Impact 
report in November.  

The report shows (based on the 1 August 2024 cut-off date) that:  

•  The pool of eligible NGEU green bond expenditures increased to EUR 264.6 billion in 2024, 
which is almost 40% higher than in 2023. This increase was mostly due to higher climate 
transition-relevant expenditure after the Member States’ recovery and resilience plans were 
revised to include the REPowerEU Plan. 

•  The NGEU green bond pool remains strongly aligned with the EU Taxonomy; with 63.4% of 
the  total  pool  of  NGEU  green  bond  eligible  expenditure  assessed  as  being  fully  or 
substantially aligned with the EU taxonomy metrics (compared with 57.5% in 2023).  

•  The full roll-out  of investments financed by NGEU  green bonds is expected  to reduce the 
EU's greenhouse gas (GHG) emissions by 55 million tonnes per year, which equates to 1.5% 
of all GHG emissions in the EU.  

Looking ahead, NGEU green bonds will increasingly be issued at the same time as Member States 
report and validate eligible expenses. For expenses that are confirmed after 2026, the Commission 
may issue NGEU green bonds to replace maturing conventional bonds during the refinancing phase. 
This approach ensures that all eligible expenditure is fully verified before the bonds are issued. 

11 

 
 
7. Issuance outlook for the first half of 2025 

On 10 December 2024, the Commission announced its intention to issue up to EUR 90 billion in EU-
Bonds  in  the  first  half  of  2025,  the  highest  semi-annual  funding  target  since  the  diversified 
funding strategy was launched in 2021. Based on disbursement forecasts, the EU expects to obtain 
EUR  160  billion  in  funding  in  2025  by  issuing  EU-Bonds.  These  funding  needs  reflect  the  wide 
range of existing and new EU policy programmes that are financed by the proceeds of EU-Bonds, 
which in H2 2024 were expanded to include a new EUR 18.1 billion exceptional MFA loan to Ukraine 
within  the  context  of  the  G7  agreement  and  new  support  for  enlargement  candidates  under  the 
Western Balkan Investment Facility and neighbourhood countries (such as Egypt and Jordan).  

Amounts raised by issuing EU-Bonds will be supplemented by short-term funding through EU-Bills 
and other short-term funding tools. Increased EU-Bill volumes will be facilitated by the introduction 
three-leg Bill auctions and the launch of a new 12-month EU-Bill line in January 2025, in addition 
to the existing 3- and 6-month lines. 

In line with the increased funding target, more bonds are also expected to be issued via auctions 
during the first half of 2025, keeping the auction share stable. This increase will be facilitated by 
introducing three-leg bond auctions during the first half of 2025. In the same vein, the Commission 
is working towards introducing non-competitive auction allocations (‘greenshoe option’) to allocate 
a  limited  additional  amount  of  auctioned  bonds  immediately  after  an  auction.  This  additional 
feature  is  also  used  by  many  sovereign  auction  programmes  to  give  their  primary  dealers  an 
incentive to support auctions, by allowing them to acquire additional bonds on favourable terms if 
the post-auction market price moves to their advantage. The Commission is  aiming to implement 
non-competitive allocations as part of the funding plan for the second half of 2025. 

12 

 
 
Annex: Implementation indicators on the use of the means for delivering against the C mm ss   ’s  ver rch  g de  -management strategy’s 
efficiency and effectiveness objectives 

Implementation 
of the EU-Bond 
programme 

Means 

Indicator 

Value in H2 2024 (unless 
indicated otherwise) 

Commentary on execution in H2 2024 

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 as 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 

1-4 years: 15% 
4-8 years: 37%  
8-12 years: 10% 
12-17 years: 12% 
17-23 years: 8% 
23-31 years: 17% 

ii.  Timely distribution of 

issuances 

iii.  Green issuances12 

Four syndications and six bond 
auctions, resulting in one or 
two issuances per month. 

EUR 8 billion, by tapping EU 
2043 and EU 2050 bonds. 

In  H2  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  six-month  period  to 
ensure a regular presence in the market.  There were fewer 
transactions  than  in  H1  2024,  as  the  H2  2024  funding 
target of up to EUR 65 billion was lower than the H1 2024 
funding target of EUR 75 billion. 

Green bond issuance was slightly lower than in the first half 
of 2024, reflecting the lower funding target, the cumulative 
reported  green  expenditures  by  Member  States,  and  the 
appropriate  calibration  of  green  bond  issuances  to  these 
expenditures.  

b)  Achieving a proper balance of 
auctions and syndications 

i.  Split auction / 

syndication in %  

42% of bond issuances via 
auction.  

In  H2  2024,  the  Commission  issued  42%  of the  EU-Bonds 
via auction, in line with the proportion in H1 2024. 

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. 
c)  Establishment of large and liquid 

benchmark bonds 

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

i.  Issuances via new 

bonds vs volume issued 
via taps 

• 

• 

EUR 10 billion via new 
bonds  
EUR 54.2 billion via taps 

ii.  Speed of tapping of new 

2 months 

bonds13 

iii.  Average size of 

Around 15 billion 

In  order  to  support  the  liquidity  of  EU  securities,  the 
Commission used its transactions to tap existing funding lines, 
with approximately 84% of  the funding volume mobilised via 
taps. 

New funding lines were launched to provide the market with 

12 Additional information on the NGEU green bonds can be found in the NGEU green bond dashboard here: Dashboard (europa.eu) 
13 Based on average number of months between new issuance and first tap when considering the new lines tapped during H2 2024. 

13 

 
 
 
 
 
 
Means 

Indicator 

outstanding bonds14 

Value in H2 2024 (unless 
indicated otherwise) 

Commentary on execution in H2 2024 

iv.  Turnover relative to 
issuance volume 

Approximately 155% in H2 
2024 vs 139% in H1 2024 

v.  Absolute turnover 

EUR 894 billion in H2 2024 vs 
EUR 714 billion in H1 2024 

d)  Management of the maturity profile 

i.  Average maturity of 

Around 12 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 10% 

Less than 37%. 

new benchmark lines where needed on the curve and based 
on the recommendations of the EU primary dealers. New 5-
year and 7-year bonds were launched in the second half of 
2024.  

As  a  result,  the  average  outstanding  amount  per  bond 
increased  marginally  to  around  EUR  15  billion  by  end  of 
December 2024, ensuring consistent liquidity of the bonds. 

In  H2  2024,  the  EU-Bond  issuances  had  an  average 
maturity of 12 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,  reflecting  the  past 
issuances and related to the redemption profile. 

Implementation 
of the EU-Bill- 
programme 

Liquidity 
management 

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 based on 
payment obligations, disbursement 
needs and the costs of cash holding, 
with due regard to prevailing market 

i.  Outstanding volume of 

EUR 20-25 billion 

EU-Bills 

ii.  Number of EU-Bill 

10 

auctions 

i.  Number of payment 

None 

failures due to lack of 
liquidity 

Outstanding  debt  under  the  EU-Bill  programme  increased 
from  around  EUR  20  billion  to  around  EUR  25  billion  over 
the period as part of the development of the programme to 
provide additional liquidity when needed. 

The  Commission  met  all  disbursement  needs  and  there 
were no settlement failures during the second half of 2024. 

14 Outstanding bonds over number of bonds as at end of H2 2024, based on bonds issued under the diversified funding strategy. 

14 

 
 
 
 
 
 
 
Indicator 

Value in H2 2024 (unless 
indicated otherwise) 

Commentary on execution in H2 2024 

15 (compared with 19 in 
H1 2024) 

EU  primary  dealers  continued  to  support  the  Commission 
and rotation at the syndications helped the Commission to 
make the best use of all the banks eligible to be part of a 
syndicate. 

Means 

conditions. 

Primary dealer 
network 

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

Communication 
with diverse 
market 
stakeholders and 
peer issuers  

Maintaining and building the trust of the 
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.  Number of institutions 

which signed 
underwriting 
commitments for 
transactions over the 
past six months 

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

None 

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

During the second half of 2024 a reduced allocation of EUR 
1 billion occurred due to the securing of attractive financing 
conditions in the bond auctions. 

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

ii.  Deviation from the 

volumes announced in 
the funding plan  

Less than EUR 1 billion or less 
than 2% (compared with less 
than 2% in H1 2024). 

iii.  Investor distribution 

statistics 

Per type:  
central banks/official 
institutions 25.1%, fund 
managers 22.5%, bank 
treasuries 21.9%, insurance 
and pension funds 20.5%, 
banks 7.3%, hedge funds 2.6%  
Per country / region: UK 19.4%, 
Nordics 12.4%, France 11.7%, 
Benelux 9.2%, Italy 8.8%, Asia-
Pacific 8.2%, Germany 8.1%, 
Iberia 7.9%, Other EU 7.4%, 
Other Europe, non-EU 2.6%, 
Americas 2.2%, Middle East 
and Africa 2.0% 

15