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MNI BRIEF: EU 10-Year NGEU Bond Seen 'Up ToE20 Bn' in Size​

BRUSSELS (MNI)

Brussels to kick off NGEU issuance Tuesday, with more sales to follow in coming weeks.

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The EU Commission will issue its first bond under the NGEU programme Tuesday, a 10-year syndicated bond, of up to EUR20bn in size. An EU source said that the borrowing would be followed by a further comparable issue Iater in June and another in July.

The source said that pricing details would probably be available by 1630CET Tuesday and that Commission President Ursula von der Leyen and EU Commissioner Johannes Hahn would give a press conference following the milestone issuance. "This is good news. We have got the ball rolling," an EU official said.

The EU Commission is expected to approve several National Recovery Plans this week, but the official said that it made sense to borrow now and to build up resources ready for disbursement in July, once member states have also approved the national plans. "In the meantime, we could build up a buffer and we could accumulate some money. We have time to carry out some transactions and raise some resources and then by the time disbursement is due we have something to start with, the official added.