Investor Presentation - European Union AAA/Aaa/AA/AAA/AAA 29 January 2021 European Commission
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Investor Presentation
European Union
AAA/Aaa/AA/AAA/AAA
29 January 2021
European Commission
SURE (1)
New EU loan programme with a ceiling of EUR 100 billion
• In the context of the Covid-19 crisis, the Council has adopted on 19
May 2020 the SURE regulation (“Support to mitigate Unemployment
Risks in an Emergency”).
• The Council has approved EUR 90.3 billion in loans to 18 Member
States with a maximum average maturity of 15 years.
• The proposed loans will assist Member States to cope with sudden
increases in public expenditure to preserve employment.
• All Member States are eligible. Further loan amounts can be allocated
up to the maximum ceiling of EUR 100 billion.
• The Commission issues bonds on behalf of the European Union and EU-27 map (without certain territories),
for illustrational purposes only, source: EC
on-lends the funds based on individual loan agreements concluded
with the beneficiary member states (back-to-back lending).
2
SURE (2)
New EU loan programme with a ceiling of EUR 100 billion
• The EU has established an ICMA-compliant social bond framework for bond issuances under the SURE
programme.
• Newly issued bonds enjoy the same status as those issued in the past.
• EU bonds are and will remain direct and unconditional obligations of the EU. For the SURE instrument,
the EU member states have provided additional guarantees of EUR 25 billion to protect the budget.
• Funding operations for the SURE instrument are carried out following the signature of individual loan
agreements with Member States – the first funding transaction, a 10y/20y dual tranche totalling EUR 17
billion, has taken place on 20 October 2020.
• Total issued amount in 2020: EUR 39.5 billion with maturities of 5, 10, 15, 20 and 30 years.
• Total issued amount in 2021 so far: EUR 14 billion (dual tranche 7y + 30y tap).
3
SURE (3)
Approved financial support of €90.3 billion to 18 Member States*
€7,800 €511 €1,000 €479 €2,000
Belgium Bulgaria Croatia Cyprus Czechia
€2,700 €504 €2,500 €27,400 €192
Greece Hungary Ireland Italy Latvia
€602 €244 €11,200 €5,900
Lithuania Malta Poland Portugal
€4,000 €631 €1,100 €21,300
Romania Slovakia Slovenia Spain
All amounts are in €million
4
SURE (4)
SURE transaction #1 – 10y/20y dual tranche issued on 20/10/2020
• The EU‘s inaugural SURE
issuance was priced on
20/10/2020 and met very
high demand from
investors (combined order
book above €230bn).
• It was the EU‘s first „dual
tranche“ issue, offering
simultaneously two tenors.
• The first SURE proceeds
were disbursed on
27/10/2020, five business
days after the transaction.
5
SURE (5)
SURE transaction #2 – 5y/30y dual tranche issued on 10/11/2020
• The EU‘s second SURE
issuance came on
10/11/2020, swiftly after
the programme‘s debut
transaction.
• Again very high demand
from investors (combined
order book above €175bn).
• The SURE proceeds were
disbursed on 17/11/2020 to
nine beneficiary member
states.
6
SURE (6)
SURE transaction #3 – 15y single tranche issued on 24/11/2020
• The EU‘s third SURE
issuance came on
24/11/2020, exactly two
weeks after SURE #2.
• Again very high demand
from investors (order book
above €114bn).
• The proceeds of SURE #3
were disbursed on
1/12/2020 to five countries.
• This bond concluded
SURE issuance for 2020.
7SURE bonds – total: EUR 53.5bn
Outstanding amount
ISIN maturity Issue Date Maturity (€ million) Coupon
EU000A284451 5y 17/11/2020 04/11/2025 8.000 0%
EU000A287074 long 7y 02/02/2021 02/06/2028 10.000 0%
EU000A283859 10y 27/10/2020 04/10/2030 10.000 0%
EU000A285VM2 short 15y 01/12/2020 04/07/2035 8.500 0%
EU000A283867 20y 27/10/2020 04/10/2040 7.000 0,10%
EU000A284469 30y 17/11/2020 04/11/2050 10.000 0,30%
total: 53.500
Source: Bloomberg
Note: EU 11/2050 issued in 17/11 was tapped on 26/1/2021 by EUR 4 billion (issue date: 2/2/2021).
8Funding framework
The European Commission, on behalf of the EU, operates four loan programmes, which are funded
in the capital markets:
“Support to mitigate Unemployment Risks in an Emergency” (SURE) – see slides 2-8.
European Financial Stabilisation Mechanism (EFSM):
Established in 2010. In principle all EU Member States can receive support, up to an agreed limit of EUR 60 billion, of which EUR 13.2
billion are available (EUR 46.8 billion disbursed to Ireland and Portugal between 2011 and 2014). The EFSM continues to be active as
loans with maturities up to 2026 can be extended, up to an average maturity of 19.5 years.
The Balance of Payments (BoP) programme provides support up to EUR 50 billion to non-euro-area Member States. No
current programme. EUR 200 million (Latvia) are still outstanding*.
Macro-Financial Assistance (MFA)
is a financial aid programme to assist non-EU countries. EUR 5.79 billion are currently outstanding*.
*as of 15/01/2021
9EU Funding Plan 2021 Up to EUR 57 billion in 2021, of which 43 billion remaining: up to €20bn in Q1, €20-25bn in Q2, plus MFA “Support to mitigate Unemployment Risks in an Emergency” (SURE): Up to EUR 45 billion in Q1 and Q2, of which 31 billion remaining • EUR 39.5 billion have been borrowed under SURE in 2020 with 5y, 10y, 15y, 20y and 30y maturities. • EUR 14 billion funded on 26 January 2021 (7y + 30y dual-tranche) • Expected further SURE issuance in Q1: up to €20bn • It is expected that the current SURE programmes will be concluded to a large extent by mid-2021. European Financial Stabilisation Mechanism (EFSM): EUR 9.75 billion in Q2/2021 Maturity lengthening operations for Portugal and Ireland are expected for 2021 with loans coming due in June (EUR 4.75 billion) and September (EUR 5 billion). The roll-overs will be funded several weeks ahead of the due dates. Macro-Financial Assistance (MFA): EUR 2.35 billion in 2021 • For ten different third countries, the Council and the EP have adopted a EUR 3 billion “Covid-19” MFA package, to be disbursed in several tranches and on top of “regular” MFA programmes. • EUR 1,155 million have been raised in 2020 through a private placement and two syndicated taps on EU 6/2035. 10 This funding plan only includes existing programmes.
New Debt Issuance Programme • On 10 December 2019, the European Commission, acting on behalf of the issuers European Union (EU) and European Atomic Energy Community (EURATOM), signed and released a new Debt Issuance Programme (DIP) which is governed by Luxembourg law. • Following the United Kingdom’s decision to exit the European Union, a new programme was commissioned to align its jurisdiction to that of an EU Member State. Credit Agricole CIB acts as arranger. • Debut issuance of this new programme (EU 6/2035, nominal amount: EUR 500 million) happened on 3 June 2020. • In principle all EU/Euratom bonds are listed at the Luxembourg Stock Exchange. The Offering Circular (Base Prospectus) and further related information can be found at the Exchange’s website: https://www.bourse.lu/issuer/UE/24055 https://www.bourse.lu/issuer/Euratom/24057 • The former EMTN programme for EU/Euratom (governed by English law and last updated on 12 March 2015) remains in place. 11
Characteristics of EU funding in general
Funds raised All bonds are All bonds are Funding Maturities: Syndicated
are so far issued with an issued under exclusively 3 - 30 years bond issues
entirely lent “EU” ISIN the EU’s Legal denominated (or private
back-to-back to number Entity in euro placements),
the beneficiary Identifier (LEI) usually under the
country 529900FZRK8 Luxembourg law
FGMPEOM08 Debt Issuance
Programme
12EUR 3 billion “COVID-19” MFA package
• The €3bn MFA “Covid” package is
on top of existing MFA programmes.
• First funding transaction for this
“Covid 19” MFA package on
29/9/2020 (€160 million private
placement) to finance disbursements
to three countries: Kosovo,
Montenegro and North Macedonia.
• Second transaction (€395 million tap
on EU 6/2035) in November for
Jordan, Georgia and Moldova.
• Third disbursement (€600 million for
Ukraine) in December 2020.
• €2.35 billion are remaining under
current MFA programmes.
13
13EFSM financial assistance packages
Ireland Portugal
€ 22.5 bn1 € 24.3 bn2
1 The Irish loan programme comprised € 67.5 billion in total 2 The loans disbursed to Portugal amounted to € 76.3 billion in total
including EFSF, IMF and bilateral loans. including EFSF and IMF loans.
• Ireland and Portugal have the option to lengthen the maturity of their EFSM loans up to a weighted average maturity
of 19.5 years (2013 Eurogroup/Ecofin decision).
• All loans/bonds with maturities up to 2026 may be refinanced prior to their redemption date. The back-to-back
principle between EU borrowing and lending operations will be fully maintained. The next eligible loans are maturing
in 2021.
• For Ireland, EUR 3.9 billion were re-financed in 2018, following the first refinancing operations of 2015 (EUR 5
billion). The average maturity of Ireland's EFSM loans is currently 17.1 years.
• For Portugal, an amount of EUR 600 million was re-financed in 2018, following the first refinancing operations of
2016 (EUR 4.75 billion). The average maturity of Portugal's EFSM loans is currently 15.3 years.
14
14European Union – Ratings (1)
Agency Rating Rating agency comments
On 25 February 2020, Fitch affirmed the EU's AAA long-term rating with stable outlook.
As supranational administrative bodies, the EU's and Euratom's 'AAA' ratings are ultimately based on the capacity
AAA / and propensity of 'AAA'-rated EU member states to provide extra funding to the EU, above their initial budget
contributions, if needed to repay debt.
Outlook
stable In addition to lending, the EU has provided an increasing amount of guarantees in recent years. In Fitch's view, the
financial risk that these guarantees represent for the EU is largely mitigated by a prudent framework of guarantee
funds that should be sufficient to cover future calls on these guarantees given the likely staggered scheduling of
claim payments.
On 18 September 2020, Moody's affirmed the EU's Aaa long-term rating with stable outlook.
The decision to affirm the Aaa rating reflects the following key rating factors:
Aaa / The very high commitment of EU members to ensuring the continued soundness of the EU's finances and their very
Outlook high capacity to do so given the significant credit strength of the EU’s most highly rated members;
stable
The multiple layers of debt service protection, including explicit recourse to extraordinary support which, in Moody’s
view, creates the equivalent of a joint and several undertaking and obligation on the part of EU member states to
provide financial support to the EU.
On 31 July 2020, S&P revised the outlook on EU’s AA long-term rating to positive and affirmed the rating.
AA / S&P sees the decisions on the Multiannual Financial Framework and the joint recovery fund as a sign of the EU's
Outlook strengthened policy importance, which is one of the rating agency’s key rating factors for supranational entities.
positive
The long-term rating on the EU relies on the capacity and willingness of the 11 wealthiest EU members (including
the U.K., which is required to contribute to the EU budget until the end of the 2014-2020 MFF) that are net
contributors to the EU budget.
15European Union – Ratings (2)
Agency Rating Rating agency comments
On 25 September 2020, DBRS Morningstar confirmed its unsolicited long-term rating of the EU at AAA stable.
DBRS Morningstar rates the EU at AAA primarily based on its Support Assessment. This is underpinned by the
creditworthiness of its core member states and their strong, continued political commitment to support the EU’s
AAA* / obligations, which provide the institution with multiple sources of support.
Outlook At the same time, the EU’s conservative budgetary management is expected to remain sound. Multiple
stable arrangements that protect creditors remain in place as well as the institution’s de facto preferred creditor status.
The Stable trend reflects DBRS Morningstar’s view that the EU’s recent decision strengthen Member State’s
commitment to the Union and compensate for the risks arising from the large increase in EU debt expected in the
next few years.
On 30 October 2020, Scope confirmed its unsolicited long-term rating of the EU at AAA stable, based on the following
key credit strengths:
Highly-rated shareholders,
AAA* / Strong institutional setup providing de facto joint and several support, debt service priority and budget
flexibility, and
Outlook
stable High liquidity buffers.
The Stable Outlook reflects our assessment of the EU’s high buffers for withstanding shocks.
Credit weaknesses taken into account comprise a significant increase in debt, crisis-country exposure, high
shareholder concentration and high guarantees to EIB operations.
* unsolicited
16European Union – Credit strengths • EU borrowings are direct and unconditional obligations of the EU. The EU is legally bound by the Treaty on the Functioning of the EU (Article 323) to service the EU debt. • The EU’s debt service is ensured based on multiple layers of debt-service protection. In principle, the EU pays its own debt with the loan redemption payments received from the loan beneficiaries (back-to-back lending). EU loan beneficiaries have always serviced their debt. • In the unlikely event of non-payment of a loan beneficiary, the EU budget guarantees that the EU timely honours its obligations. To this end, the Commission can make available its cash buffer, re-prioritise budgetary expenditure and, if needed, draw additional resources from Member States. • The budgetary margin (difference between own-resources annual ceiling of the multi-annual financial framework (MFF) and the actual payment appropriations of the EU budget) serves as protection to investors by providing coverage against unexpected payment obligations. For the SURE programme, Member States provide additional guarantees of EUR 25 billion. • EU borrowing has traditionally been used to finance loans to countries – both EU Member States and third countries eligible for MFA assistance. Subject to European Council agreement on the Recovery Plan (July 2020), the Commission will be exceptionally empowered to borrow to fund crisis-repair and recovery actions through the Next Generation EU programme once this agreement has been ratified by the European and national Parliaments. 17
EU outstanding amounts of benchmark bonds
€ billion per calendar year
13
12
1,93
11 2,3
10
2,0
9 2,4
8
4,75
7
6
5 10 10 10
8,5
4 8,0
7
3 1,5 0,6
5,0 0,91
0,52
2 4,0 0,92
2,7 2,6 3,0 3,0 3,0
1 2,0 2,25 2,1 1,8
1,4 1,0
0
SURE EFSM MFA
18
18Interpolated yield curve of EU
versus Germany and France
0,6
Yields of EU, Germany and France
0,4
0,2
0,0
Jan-21 Sep-23 Jun-26 Mar-29 Dec-31 Sep-34 Jun-37 Mar-40 Nov-42 Aug-45 May-48 Feb-51 FR
DE
EU
-0,2
-0,4
-0,6
-0,8
Source: Bloomberg, 29 January 2021
19Interpolated yield curve of EU
versus KfW and ESM
0,2
Yields of EU, KfW and ESM
0,1
0,0
Jan-21 Sep-23 Jun-26 Mar-29 Dec-31 Sep-34 Jun-37 Mar-40 Nov-42 Aug-45 May-48 Feb-51
-0,1
-0,2 ESM
KfW
EU
-0,3
-0,4
-0,5
-0,6
-0,7
20 Source: Bloomberg, 29 January 2021EU and peers - 5 year spread to Germany
+70,0
Spread to Germany
5y bonds
+60,0
+50,0
+40,0
+30,0
+20,0
+10,0
+0,0
EU 09/2026 EFSF 05/2026 EIB 10/2026 ESM 03/2026 FRTR 11/2026 KFW 09/2026
Source: Bloomberg, 29 January 2021
21EU and peers - 10 year spread to Germany
+80
Spread to Germany
10y bonds
+70
+60
+50
+40
+30
+20
+10
+0
EU 04/2031 EFSF 03/2032 EIB 03/2031 ESM 05/2032 FRTR 05/2031 KFW 09/2032
22 Source: Bloomberg, 29 January 2021EU and peers - 15 year spread to Germany
+100
Spread to Germany
+90 15y bonds
+80
+70
+60
+50
+40
+30
+20
+10
+0
EU 04/2036 EFSF 04/2037 EIB 09/2036 ESM 11/2036 FRTR 05/2036 KFW 07/2036
Source: Bloomberg, 29 January 2021
23EU: outstanding benchmark bonds
issued since 2011
Spread vs. mid swap (bps)
Coupon & maturity Payment date Exact maturity Amount (€)
at issuance current*
EU 3.500% 06/2021 31-05-2011 04-06-2021 4,750,000,000 14 -11
EU 2.750% 09/2021 21-09-2011 21-09-2021 5,000,000,000 20 -13
EU 2.750% 04/2022 04-05-2012 04-04-2022 2,700,000,000 56 -17
EU 0.625% 11/2023 01-10-2015 04-11-2023 3,500,000,000 -12 / -15** -16
EU 1.875% 04/2024 25-03-2014 04-04-2024 3,200,000,000 +9 / +6 / +3** -16
EU 0.500% 04/2025 06-02-2018 04-04-2025 2,400,000,000 -23 -16
EU 0.000% 11/2025 17-11-2020 04-11-2025 8,000,000,000 -9 -19
EU 3.000% 09/2026 29-09-2011 04-09-2026 4,000,000,000 40 -18
EU 2.500% 11/2027 30-10-2012 04-11-2027 3,000,000,000 36 -18
EU 2.875% 04/2028 03-07-2012 04-04-2028 2,300,000,000 68 -18
EU 0.000% 06/2028 02-02-2021 02-06-2028 10,000,000,000 -16 -16
EU 1.375% 10/2029 12-11-2014 04-10-2029 2,245,000,000 +3 / +2 / -5** -21
EU 0.000% 10/2030 27-10-2020 04-10-2030 10,000,000,000 3 -16
EU 0.750% 04/2031 13-04-2016 04-04-2031 3,160,000,000 +2 / -12 / -26** -19
EU 3.375% 04/2032 05-03-2012 04-04-2032 3,000,000,000 78 -17
EU 1.250% 04/2033 06-03-2018 04-04-2033 2,615,000,000 -17 / -14 / -5** -17
EU 0.125% 06/2035 10-06-2020 10-06-2035 1,655,000,000 8 / -1.3 / -5 / -10** -12
EU 0.000% 07/2035 01-12-2020 04-07-2035 8,500,000,000 -5 -11
EU 1.500% 10/2035 22-09-2015 04-10-2035 2,000,000,000 4 -13
EU 0.500% 12/2035 03-07-2019 04-12-2035 250,000,000 -6 -11
EU 1.125% 04/2036 15-03-2016 04-04-2036 1,000,000,000 8 -11
EU 3.375% 04/2038 24-04-2012 04-04-2038 1,800,000,000 87 -11
EU 0.100% 10/2040 27-10-2020 04-10-2040 7,000,000,000 14 -8
EU 3.750% 04/2042 16-01-2012 04-04-2042 3,000,000,000 125 -3
EU 0.300% 11/2050 17-11-2020 04-11-2050 10,000,000,000 21 / 5 +4
* **
24 I-Spread levels as of 29/01/2021 - Source: Bloomberg first number: spread at issuance, remaining: spreads of tapsOutstanding EU loans by programme
Distribution of outstanding loans by programme
BOP (Latvia); 0,2%
SURE (others); 20,2%
EFSM (Ireland);
21,2%
SURE (Spain); 10,4%
EFSM (Portugal);
22,9%
SURE (Italy); 19,7%
As of 29/01/2021
25
MFA ; 5,4%SURE benchmark bonds since 2020
Investor distribution (after allocation)
Investor distribution by type Investor distribution by region
Fund Managers Switzerland Rest of World UK
38% 1,8% 0,2%
Hedge Funds 23,0%
Middle East
2% & Africa
2,0%
Banks
3% Americas
2,4%
Germany
Italy 19,7%
Insurance and 6,3%
Pension Funds
9%
Asia
6,3%
Other Europe
Bank 7,0%
Central Banks / France
Treasuries
Official 12,5%
27% Nordics
Institutions
19% 7,3% Benelux
11,5%
EU dual-tranche (10y/20y) under SURE 2020: €17 billion EU 15y under SURE 2020: €8.5 billion
EU dual-tranche (5y/30y) under SURE 2020: €14 billion EU dual-tranche (7y/30y tap) under SURE 2021: €14 billion
26EUR 10 billion 0.000%
Benchmark due 4 October 2030
Key terms Investor distribution by type
Issuer European Union (EU)
10yr - Distribution by Investor type
AAA stable (DBRS) / AAA stable (Fitch) / Aaa stable (Moody’s) / AA
Issuer ratings
positive (S&P) / AAA stable (SCOPE) Bank Treasuries
6% 15%
Pricing date 20 October 2020 1% Banks
Settlement date 27 October 2020 Central Banks / Official
41%
Institutions
Fund Managers
Maturity date 04 October 2030
37%
Insurance and Pension
Size € 10 billion Funds
Coupon 0,000%
Re-offer spread MS +3 bps Investor distribution by region
Re-offer price 102.396% 10yr - Distribution by geography
Re-offer yield -0.238% Asia
9% Benelux
20%
ISIN / Common France
EU000A283859 / 224963122 / A28385 15%
Code / WKN Germany
3% Nordics
Listing Luxembourg Stock exchange 7% Other Europe
12% Americas
4%
Denominations EUR 1,000 5% Southern Europe
8% 17%
Middle East & Africa
Bookrunners Barclays, BNP Paribas, Deutsche Bank, Nomura, UniCredit UK
27EUR 7 billion 0.100%
Benchmark due 4 October 2040
Key terms Investor distribution by type
Issuer European Union (EU)
20yr - Distribution by Investor type
AAA stable (DBRS) / AAA stable (Fitch) / Aaa stable (Moody’s) / AA
Issuer ratings
positive (S&P) / AAA stable (SCOPE) Bank Treasuries
Pricing date 20 October 2020 13%
25% Banks
Settlement date 27 October 2020 Central Banks / Official
3% Institutions
Maturity date 04 October 2040 Fund Managers
46% 13%
Size € 7 billion Insurance and Pension
Funds
Coupon 0,100%
Re-offer spread MS +14bps Investor distribution by region
Re-offer price 99.390% 20yr - Distribution by geography
1%
Re-offer yield 0.131% Asia
16% 16% Benelux
ISIN / Common 2% France
EU000A283867 / 224963149 / A28386
Code / WKN Germany
10% Nordics
Listing Luxembourg Stock exchange 19% Other Europe
5%
Americas
Denominations EUR 1,000 6% Southern Europe
1%
24% Middle East & Africa
Bookrunners Barclays, BNP Paribas, Deutsche Bank, Nomura, UniCredit UK
28EUR 8 billion 0.000%
Benchmark due 4 November 2025
Key terms Investor distribution by type
Issuer European Union (EU)
5yr - Distribution by Investor type
AAA stable (DBRS) / AAA stable (Fitch) / Aaa stable (Moody’s) / AA
Issuer ratings Bank Treasuries
positive (S&P) / AAA stable (SCOPE)
5%
Pricing date 10 November 2020 8% 21% Banks
Settlement date 17 November 2020 Central Banks / Official
3% Institutions
Fund Managers
Maturity date 4 November 2025 33%
Hedge Funds
€ 8 billion 30%
Size
Insurance and Pension
Coupon 0,000% Funds
Re-offer spread MS -9 bps Investor distribution by region
Re-offer price 102.566 % 5yr - Distribution by geography
Re-offer yield -0.509 % Asia & Middle East
16% Benelux
ISIN / Common 24% France
EU000A284451 / 225919232 / A28445 Germany
Code / WKN 8%
Nordics
Listing Luxembourg Stock exchange 10% Other Europe
13%
Americas
Denominations EUR 1,000 2% 7% 10% Switzerland
8% Southern Europe
BofA Securities, Commerzbank, Credit Agricole CIB, DZ BANK and UK
Bookrunners 3%
TD Securities
29EUR 6 billion 0.300%
Benchmark due 4 November 2050
Key terms Investor distribution by type
Issuer European Union (EU)
30yr - Distribution by Investor type
AAA stable (DBRS) / AAA stable (Fitch) / Aaa stable (Moody’s) / AA 1%
Issuer ratings
positive (S&P) / AAA stable (SCOPE) Bank Treasuries
Pricing date 10 November 2020 15%
23% Banks
4%
Settlement date 17 November 2020 Central Banks / Official
4% 15% Institutions
Maturity date 4 November 2050 Fund Managers
Hedge Funds
Size € 6 billion 38%
Insurance and Pension Funds
Coupon 0,300%
Re-offer spread MS +21 bps Investor distribution by region
Re-offer price 99.515 % 30yr - Distribution by geography
2%
Re-offer yield 0.317% Asia & Middle East
18% 8% Benelux
ISIN / Common France
EU000A284469 / 225919267 / A28446 17%
Code / WKN Germany
11% Nordics
Listing Luxembourg Stock exchange Other Europe
4%
Americas
Denominations EUR 1,000 2% 7% Switzerland
29%
2% Southern Europe
BofA Securities, Commerzbank, Credit Agricole CIB, DZ BANK and UK
Bookrunners
TD Securities
30EUR 8,5 billion 0.000%
Benchmark due 4 July 2035
Key terms Investor distribution by type
Issuer European Union (EU)
15yr - Distribution by Investor type
AAA stable (DBRS) / AAA stable (Fitch) / Aaa stable (Moody’s) / AA
Issuer ratings Bank Treasuries
positive (S&P) / AAA stable (SCOPE)
Pricing date 24 November 2020 2% 14% 20% Banks
1%
Central Banks / Official
Settlement date 01 December 2020
Institutions
15%
Fund Managers
Maturity date 4 July 2035
Hedge Funds
Size € 8.5 billion 48%
Insurance and Pension
Coupon 0,000% Funds
Re-offer spread MS -5bps Investor distribution by region
Re-offer price 101.50% 15yr - Distribution by geography
Re-offer yield -0.102% 6%
Asia
24% 13%
ISIN / Common Benelux
EU000A285VM2 / 226550453 / A285VM France
Code / WKN
12% Germany
Listing Luxembourg Stock exchange 7% Nordics
Other Europe
Denominations EUR 1,000 1% 3%
RoW
11% 22% Southern Europe
Citigroup Global Markets Europe AG, HSBC, J.P. Morgan AG,
Bookrunners UK
Landesbank Baden-Württemberg, Société Générale
31EUR 10 billion 0.000%
Benchmark due 2 June 2028
Key terms Investor distribution by type
Issuer European Union (EU)
7yr - Distribution by Investor type
AAA stable (DBRS) / AAA stable (Fitch) / Aaa stable (Moody’s) / AA 1,7% 1,2%
Issuer ratings Bank Treasuries
positive (S&P) / AAA stable (SCOPE) 4,5%
Pricing date 26 January 2021 Fund Managers
39,0%
18,9%
Central Banks / Official
Settlement date 02 February 2021
Institutions
Banks
Maturity date 2 June 2028
Hedge Funds
Size € 10 billion 34,7%
Insurance and Pension
Coupon 0,000% Funds
Re-offer spread MS -16bps Investor distribution by region
Re-offer price 103.719% 7yr - Distribution by geography
4,1% 1,8%
4,1%
Re-offer yield -0.487%
UK
34,7%
ISIN / Common 7,3% Germany
EU000A287074 / 229459163 / A28707 Italy
Code / WKN 7,8% Benelux
Listing Luxembourg Stock exchange France
8,4% Other Europe
Asia
Denominations EUR 1,000 8,8% Nordics
14,0% Middle East & Africa
Barclays Bank Ireland, Commerzbank, Deutsche Bank, Goldman 9,0%
Bookrunners Switzerland
Sachs Bank Europe SE, LBBW
32EUR 4 billion 0.300% - TAP
Benchmark due 4 November 2050
Key terms Investor distribution by type
Issuer European Union (EU)
30yr - Distribution by Investor type
AAA stable (DBRS) / AAA stable (Fitch) / Aaa stable (Moody’s) / AA
Issuer ratings
positive (S&P) / AAA stable (SCOPE) Bank Treasuries
2,0% 11,0%
Pricing date 26 January 2021 30,0% Fund Managers
6,5%
Settlement date 02 February 2021 4,3% Central Banks / Official
Institutions
Maturity date 4 November 2050 Banks
Hedge Funds
Size € 4 billion (reopening of existing line) 46,2%
Insurance and Pension Funds
Coupon 0,300%
Re-offer spread MS +5 bps Investor distribution by region
Re-offer price 104.839 % 30yr - Distribution by geography
0,1%
6,8% 1,6% 0,5%
Re-offer yield 0.134% 0,5% UK
16,4% Germany
ISIN / Common 7,5%
EU000A284469 / 225919267 / A28446 Italy
Code / WKN
8,2% Benelux
Listing Luxembourg Stock exchange France
Other Europe
13,3% 33,4% Asia
Denominations EUR 1,000
Nordics
11,7% Middle East & Africa
Bookrunners Barclays Bank Ireland, Commerzbank, Deutsche Bank, Goldman Switzerland
Sachs Bank Europe SE, LBBW Rest of World
33Synopsis of European supranational issuers
European Union (EU) EFSF (data as of 10/11/2020) ESM (data as of 10/11/2020) EIB (data as of 30/06/2020)4
Legal Supranational body established under EU Private Company ('Societe International financial institution Autonomous public financial institution
Foundation Treaty (TFEU) Anonyme') incorporated under established under international established under EU Treaty (TFEU, Art. 308) -
Luxembourg Law, founded on an treaty - Multilateral Lending Multilateral Lending Institution
international agreement Institution (since October 2012)
Lending SURE: €100 bn; Utilised €39.5 bn €440 bn €500 bn 250% of subscribed capital, reserves, non-
capacity EFSM: €60 bn Utilised: €172.61 bn, Utilised: €89.9 bn, allocated provisions and profit and loss account
Utilised: €46.8 bn; Outstanding: €46.8 bn Outstanding: €172.61 bn Outstanding: €89.9 bn surplus, less equity participations (excluding loan
BoP: €50 bn, substitutes):
Available capacity: €410.1 bn
Utilised: €13.4 bn; Outstanding: €0.2 bn Loans disbursed: €428bn
MFA: no ceiling, €5.79 bn outstanding Loans to be disbursed: €101bn
Mandate Provide financial assistance to countries Provide financial assistance to Provide financial assistance to EU's long-term lending institution: finances
in financial and economic difficulty in euro area member states in euro area member states in sustainable investment projects that contribute to
order to promote economic and social difficulties in order to safeguard difficulties in order to safeguard EU policy objectives. More than 90% of activity in
integration of the member states financial stability in Europe financial stability in Europe EU.
Shareholders 27 EU member states 17 euro area member states All 19 euro area member 27 EU member states
(without Latvia and Lithuania) states
Support to EU budget and member states' obligation Explicit, irrevocable and Share capital comprising paid Explicit obligation on EIB's shareholders to pay
Bondholders to provide the funds necessary to meet unconditional guarantee of the in capital and callable capital. their own share of the callable capital, on demand
the EU’s legal obligations. members; 'several' liability except Explicit, irrevocable and from the Board of Directors; 'several' liability.
for Member States in a unconditional obligation to pay Callable capital: €226.6bn
EU Budget 2020:
programme (‘stepping out’ ) the share of callable capital on Paid-in capital reserves and surplus: €72.3bn
€153.6 bn in payments (€168.7 bn in
commitments). €724.4 bn overall guarantees; demand; 'several' liability Subscribed capital: €248.8bn
bond issuance backed by up to Callable capital: €624.25 bn
165% over guarantees. Paid-in capital: €80.55 bn
Ratings¹ AAA/Aaa/AA/AAA²/AAA³ AA/Aa1/AA/AAA²/AA+³ AAA/Aa1/AAA/AAA²/AAA³ AAA/Aaa/AAA/AAA²/AAA³
¹ Fitch / Moody's / S&P / DBRS / SCOPE ² DBRS: unsolicited rating ³ SCOPE: unsolicited rating
34 4Based on EIB (unconsolidated) unaudited condensed interim financial statements under EU Accounting Directives, as of November 2020.
34Contacts – EU funding team
BUDGET E3: Borrowing and Lending operations
Jean-Pierre RAES, Head of Funding
Tel.: +352 4301 30070
Email: jean-pierre.raes@ec.europa.eu
Stefan KOHLER, CFA, Senior Borrowing Manager Thilo SARRE, Manager Borrowing & Lending
Tel.: +352 4301 37453 Tel.: +352 4301 38876
Email: stefan.kohler@ec.europa.eu Email: thilo.sarre@ec.europa.eu
Lara PAVANELLO, Financial Officer Ana-Mihaela DANIELESCU, Financial Officer
Tel.: +352 4301 33931 Tel.: +352 4301 36732
Email: lara.pavanello@ec.europa.eu Email: Ana-Mihaela.danielescu@ec.europa.eu
Directorate-General for Budget (BUDG), Directorate E
12 Rue Guillaume J. Kroll, L-1882 Luxembourg
Direct access to investor relations site:
http://ec.europa.eu/economy_finance/eu_borrower/index_en.htm
Bloomberg: EUEU
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