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EU To Sell Recovery Fund Debt Via Auction

EUROZONE ISSUANCE

The E.U. will "move away from an exclusive reliance on syndicated transactions towards use of some auctions" in issuance for some of the debt backing the E750B recovery fund, Reuters cites European Commissioner for Budget and Administration Johannes Hahn as saying at the IMF-World Bank annual meeting.

  • Hahn said the Commission will support this issuance through liquidity management tools/supporting secondary market.
  • This would be the first time the EU uses auctions for issuance and compares with SURE issuance, for which the EU will use syndications starting in the last half of October.

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