EU raises 15 bln euro to finance Europe' s recovery from coronavirus crisis

(MENAFN - Kuwait News Agency (KUNA)) BRUSSELS, June 29 (KUNA) -- The European Union Tuesday announced that it has raised 15 billion euro (USD 17 billion) to finance Europe's recovery from the coronavirus crisis and its consequences.This was a dual-tranche transaction, consisting of a 9 billion euro (USD 10 billion) 5-year bond due on 6 July 2026 and a 6 billion euro (USD 7 billion) 30-year bond due on 6 July 2051, said an European Commission press release.Both tranches "attracted a very strong interest by investors across Europe and the world", it noted.EU Commissioner in charge of Budget and Administration, Johannes Hahn, said:" This is the second time the Commission has gone to the markets to borrow under Next Generation EU and again we have received a strong vote of confidence from our investors.I am glad that the money raised today will help build a greener, more digital and more resilient Europe".Today was the second transaction for the Next Generation EU program, following the 20 billion (USD 23 billion) 10-year bond that the European Commission issued on 15 June on behalf of the EU.Following today's transaction, the EU has so far raised 35 billion euro (USD 41 billion) under Next Generation EU.The funds will now be used for the first payments under the scheme, including under the Recovery and Resilience Facility and various EU budget programs.By the end of 2021, the European Commission expects to raise some 80 billion euro (USD 95 billion) in bonds, to be complemented by short-term EU-Bills.Next Generation EU is a temporary recovery instrument of some 800 billion euro (USD 952 billion) in current prices to support Europe's recovery from the coronavirus pandemic.The European Commission, on behalf of the EU, will raise from the capital markets up to around 800 billion euro (USD 952 billion) between now and end-2026. (end) nk.mb MENAFN29062021000071011013ID1102364300