Luxembourg Stock Exchange Marks Quotation of SURE's First 17 Billion Bonds

This is the first issue of bonds of this type to be issued by the European Commission. The issue will serve to provide European countries with financing to help them bear the costs of employment support measures in the midst of the pandemic crisis.

Matthieu Rondel

The Luxembourg stock exchange reported on Tuesday the price of the first social investment bonds issued under the EU SURE instrument. The European support fund created to mitigate the damage caused by the Covid-19 pandemic, SURE, will have 17 billion euros of social investment bonds listed on LuxSE. This is the first issue of bonds of this type to be issued by the European Commission.

The session on the Luxembourg stock exchange was witnessed, this Tuesday, by the European Commissioner for Budget and Administration, Johannes Hahn, and by the Luxembourg Prime Minister, Xavier Bettel, who informed that this issue will consist of two tranches: the first will be worth EUR 10 billion with a maturity of 10 years and the second tranche will be EUR 20 billion with a maturity of XNUMX years.

“LGX's main objective is to contribute to inclusive and sustainable growth and today's price represents an important milestone not only for Europe, but also for sustainable financing”, quotes the statement by Robert Scharfe, chairman of the board board of directors of LuxSE.

Bond placement - which will serve to grant European countries to help them bear the costs of employment support measures in the midst of the pandemic crisis - attracted demand 13 times greater than supply and exceeded 233 billion euros.

This reaction reflects “the significant support of the investor community to a social investment obligation aimed at safeguarding jobs and combating the increase in unemployment in European countries due to the Covid-19 pandemic and the consequent economic crisis”.

The European Union's SURE program aims to borrow up to EUR 100 billion on the capital markets, in order to support efforts to protect employment and combat unemployment across Europe. To date, 17 Member States will receive financial support from the program, for a total amount of € 87,9 billion, to protect employment and workers in their respective countries. Of this amount, Portugal will receive 5,9 billion euros to be allocated in the form of loans.

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