EU Bonds are taking over the future! 💶 🚀
On 7 October Commissioner Johannes Hahn was at the Frankfurt Stock Exchange for the “Ring the Bell” ceremony! 🔔
We rang in a new chapter for the EU Bond market: the European Commission launched its Repo Facility!
What is the Repo Facility and how does it work?
As of 7 October 2024, the EU offers its Primary Dealers the possibility to source specific EU-Bonds on a temporary basis through its EU Repurchase Agreement (Repo) Facility. The facility will support EU Primary Dealers in posting 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, hence improving the efficiency and fluidity 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 eco-system for EU-Bonds. With the launch of the scheme, the EU is meeting the last of the commitments made in December 2022 on the capacity-building steps to support the EU-Bond market.
The European Commission is a well-established name in debt securities markets, with a strong track record of successful bond issuances – on behalf of the EU - over the past 40 years. In recent years the EU has developed into a large and liquid sovereign-like issuer, becoming the 5th largest issuer in the European capital market.
All EU issuances are denominated exclusively in euro and benefit from the high credit rating of the European Union.
Our EU-Bonds have earned the unique label “Triple S” because they are:
💶 As Safe as a bond can be: as proved by Triple-A ratings
🌱 Sustainable: as we are raising up to 30% of NextGenerationEU through Green Bonds. The EU is on track to become the world's largest issuer of green bonds
📈 Successful: The investor base for EU-syndicated bonds has grown to more than 1,800 investors across more than 70 countries. Today, we have a sovereign-style approach, and the EU is the fifth-largest issuer of euro-denominated debt
Let’s continue the success of our EU-Bonds in the future!
Thank you to Eurex Clearing, Deutsche Bundesbank, Deutsche Börse, Joachim Nagel, Erik Müller and all the organisers of the “Ring the Bell” ceremony at the Frankfurt Stock Exchange! 🔔
Learn more about the new Repo Facility here: https://europa.eu/!pfGHJv