EN

Ref. Ares(2021)1354132 - 18/02/2021

EUROPEAN COMMISSION

BUDGET

Asset, debt and financial risk management
Borrowing and Lending Operations

Luxembourg, 18 February 2021
BUDG.E.3 (2021)

SURE
Quarterly Report
Q4/2020

NOTE FOR THE MEMBER STATES ON THE OUTSTANDING CLAIMS UNDER LOAN
AGREEMENTS AND LIABILITIES UNDER BORROWINGS

EN

EN

Table of Contents

1.

Introduction

2

2.

European instrument for temporary support to mitigate unemployment risks in an
emergency (SURE)

2

2.1

Description of the Programme

2

2.2

Description of borrowing operations Q4/2020

3

2.3

Debt profile under SURE

4

ANNEX : SURE: Liabilities under Borrowings

1

1. INTRODUCTION

The objective of this service note is to monitor on a quarterly basis the activity of the
European instrument for temporary support to mitigate unemployment risks in an emergency
(SURE).
Council Regulation (EU) 2020/6721 provides that the Member States of the European Union
(together called the "Guarantors") may contribute to SURE by counter-guaranteeing the risk
borne by the Union and that such contributions shall be provided in the form of irrevocable,
unconditional and ondemand guarantees. Article 11(3) of Council Regulation (EU) 2020/672
provides that the Commission is to conclude an agreement with a contributing Member State
on the irrevocable, unconditional and on-demand guarantee, and that such agreement is to
set out the payment conditions (a "Guarantee Agreement").
Point 3.2 of these Guarantee Agreements mentions that "The Commission shall report to the
Guarantors on the outstanding claims under Loan Agreements and liabilities under
Borrowings on a quarterly basis".

2. EUROPEAN INSTRUMENT FOR TEMPORARY SUPPORT TO MITIGATE UNEMPLOYMENT RISKS IN AN EMERGENCY
(SURE)
2.1

Description of the Programme

In the context of the Covid-19 crisis, the Council adopted on 19 May 2020 the SURE
regulation ("Support to mitigate Unemployment Risks in an Emergency").
The financial instrument is available for Member States that need to mobilise significant
financial means to fight the negative economic and social consequences of the Covid-19
outbreak on their territory. It can provide financial assistance up to EUR 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.
Up until end-2020, the Council has already approved EUR 90.3 billion in loans to 18 Member
States with a maximum average maturity of 15 years. Further loan amounts can be allocated
up to the maximum ceiling of EUR 100 billion.

1

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 (0J

2

2.2

Description of borrowing operations Q4/2020

The total issued amounts in Q4/2020 have been EUR 39.5 billion with maturities of 5, 10, 15,
20 and 30 years:
1. Debut SURE dual tranche transaction executed successfully on the 20/10/2020 for a
total of EUR 17 billion of inaugural social bond. The issuance consists of two bonds,
with EUR 10 billion due for repayment in October 2030 and EUR 7 billion due for
repayment in 2040. There was very strong investor interest in this highly rated
instrument, and the bonds were more than 13 times oversubscribed, resulting in
favourable pricing terms for both bonds.
2. Second SURE dual tranche transaction was executed successfully on 10/11/2020 for a
total amount of EUR 14 billion social bond split over two distinct tenors: EUR 8bn due
in November 2025 and EUR 6bn due in November 2050. The deal has received an
overwhelming response in the capital markets and represents one of the largest
supranational transaction ever launched.
3. Third SURE single tranche transaction executed successfully on 24/11/2020 for a total
amount of a EUR 8.5 billion social bond due in July 2035. The 15-year social bond was
extremely well received in the capital markets, having amassed the largest-ever order
book for any single tranche benchmark issuance, and printing the largest 15-year
deal size in the Sovereigns, Supranationals and Agencies (SSA) space to date.
Figure 1. SURE - Key Statatistics of the Borrowing transactions (in EUR)
SURE #1

SURE #2

SURE #3

Tranche

10 year

20 year

5 year

30 year

15 year

Size of bond

10 billion

7 billion

8 billion

6 billion

8.5 billion

Yield

-0.238%

0.131%

-0.509%

0.317%

Spread

MS+3 bps MS +14 bps MS-9 bps MS+21 bps

-0.102%
MS-5bps

New Issue Concession +1 bp

+2 bps

+1.5 bps

+2.5 bps

+1 by

Total investor demand 145 bn

88 bn

105 bn

70 bn

114 bn

Based on the above-mentioned issuance transactions, the following disbursements were
made:
Figure 2. Overview of the SURE programme and SURE transactions in Q4/2020 (EUR billion)

Bulgaria

0 511

CYPrus

0479

0.15

0,10

0.25

0.25

52.2%

Greece

2.728

1 00

1 00

2.00

2.00

73.3%

17.5

Spain

21324

2.85

1,15

4.00

10.00

46.9%

13.3

0.34

0.17

051

Croatia

1.020

Hungary

0504

3.50

2.50

6.00

0.20

15.0

051

50.0%

133

0.20

39.7%

14.6
15.9

Ireland

2.5

Italy

27.438

3.10

650

16.50

60.1%

Lithuania

0 602

020

0.30

030

498%

133

Latvia

0.192

0.08

0.04

0.12

0.12

62.5%

133

004

0.12

133

Malta

0.243

Poland

11,236

Portugal

5.934

Romania

4.099

Slovenia

1.113

Slovakia

0.630

Czechia

2.0`

Total

903

5.50

4.50

1.00

10.00

0.20

10.00

0.12

49.4%

1.00

8.9%

9.9

3.00

3.00

50.6%

14.6

3.00

3.00

73.2%

14.6

0.20

18.0%

5.0

0.30

0.30

47.6%

14.6

8.50

39.50

43.7%

14.7

1.00

7.00

17.00

8.00

0.20

6.00

14.00

. The loan agreement with Czech Republic has.", yet been signed.

3

2.3

Debt profile under SURE

Figure 3. Yearly repayment schedule of outstanding loans under SURE (principal + interest) at 31.12.2020
Calendar year

SURE
Principal

Interest

SURE Total

2021

23 920 000

23 920 000

2022

25 000000

25 000000

2023

25 000 000

25 000 000

2024

25 000 000

25 000000

25 000 000

8 025 000 000

2026

25 000 000

25 000 000

2027

25 000 000

25 000 000

2028

25 000 000

25 000 000

2025

8 000 000 000

2029
2030

10 000 000 000

25 000 000

25 000 000

25 000 000

10 025 000 000

2031

25 000 000

25 000 000

2032

25 000 000

25 000 000

2033

25 000 000

25 000 000

2034

25 000000

25 000 000

2035

25 000 000

8 525 000 000

2036

8 500 000 000

25 000 000

25 000000

2037

25 000 000

25 000 000

2038

25 000 000

25 000 000

2039
2040

7 000 000 000

25 000 000

25 000 000

25 000 000

7 025 000 000

2041

18 000 000

18 000 000

2042

18 000 000

18 000 000

2043

18 000 000

18 000 000

2044

18 000 000

18 000000

2045

18 000 000

18 000 000

2046

18 000 000

18000 000

2047

18 000 000

18 000 000

2048

18 000 000

18 000 000

2049

18 000 000

18 000 000

2050

6 000 000 000

18 000000

6 018 000 000

Grand Total

39 500 000 000

678 920 000

443 178 920 000

10,000,000,000

9,000,000,000

8,000,000,000

7,000,000,000

6,000,000,000

5,000,000,000

4,000,000,0013

3,000,000,000

2,000,000,000

1,000,000,000

20212022 202320242025 202620272028 202920302031 203220332034 203520362037 2038203920402041204220432044204520462047 204820492050
■ SURE Principal ■ SURE Interest

4

ANNEX

SURE - Liabilities under Borrowings by Member State (EUR)

Given that the volume of outstanding loans under SURE exceeds the guaranteed volume of
EUR 25 billion, Member States risk exposure under the guarantee agreement equals their
full committed amounts:
Liabilities under
Borrowings

Member State

by Member State
Kingdom of Belgium

838 224 250

Republic of Bulgaria

107 466 500

Czech Republic

374 538 500

Kingdom of Denmark

563 837 750
6 383 820 000

Federal Republic of Germany
Republic of Estonia

48 716 500

Ireland

483 401 250

Hellenic Republic

342 618 750

Kingdom of Spain

2 252 890 750

French Republic

4 406 976 250
95 693 500

Republic of Croatia

3 183 786 000

Italian Republic
Republic of Cyprus

38 114 750

Republic of Latvia

57 070 750

Republic of Lithuania

83 953 500

Grand Duchy of Luxembourg

76 856 750

Hungary

249 596 000
23 044 250

Republic of Malta

1 441 199 500

Kingdom of the Netherlands

717 215 750

Republic of Austria
Republic of Poland

930 103 250

Portuguese Republic

365 571 000

Romania

393 384 250

Republic of Slovenia

88 126 500

Slovak Republic
Republic of Finland

173 516 250

Kingdom of Sweden

848 537 250

431 740 250
25 000 000 000

5