The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

NextGen EU funding moves to auctions and EU-bills

In September, the EU will issue bills through the auction system operated by the Banque de France for the French Trésor. But they will not immediately be a reference safe asset for European capital markets.


In September, the EU will launch its first auction of short-dated EU-bills, as part of a NextGenerationEU funding programme scheduled to raise €80 billion in the second half of 2021.

It had already raised $45 billion by the end of July, through three syndicated issues of long-term bonds, including a €20 billion 10 year that was its largest single tranche deal to date, and a €10 billion 20 year that drew a record €100 billion of investor orders.

It will now alternate between syndicated new issues of long-dated bonds and auctions for tapping existing lines through a primary dealer network of 39 institutions. This counts for the first time banks from Spain, Greece, Belgium, Sweden, Finland and Austria as well as 12 subsidiaries of non-EU parented groups, including the big five US banks.

The EU’s latest presentation to investors discusses raising tens of billions in EU-bills, implying auctions of short-term debt might make up the majority of what remains to be done in the next few months. It will set dates for bill auctions in September and target maturities of under one year.

The EU has set a maximum limit of €60 billion of EU-bills, equating to 8% of its €800 billion total funding programme

The EU is now developing a sovereign funding programme and most EU sovereigns fund through auctions of three- and six-month bills as well as 12-month paper.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree