EU 2021 Funding Plan

The EU has announced its funding plan for 2021, covering the period between June to December. Highlights below:

• The EU Commission plans to issue around E80bln of bonds in 2021 with "tens of billions of EU-Bills".
• This is E24bln more than had been previously announced (E55bln minimum) and around E12bln more than the MNI Markets team had assumed.
• "The Commission will use the EU-Bills to raise the additional funds quickly when needed to complement the amounts from the long-term bond issuance."
• Borrowing is due to start in June, initially through a syndication with more syndications planned by the end of July.
• Auctions of bills and bonds will begin in September with at least one syndication and one auction per month.
• Bill auctions will be managed by the Banque de France through the NextGenerationEU auction platform.
• The EU plans conduct the remaining EFSM borrowing of E5bln in July (date was uncertain previously).
• A further E1.8bln is still to be issued under the MFA programme.
• A revised funding assessment will be published in September.