European Commission to issue euro80 billion in EU bonds in second half

The European Commission has announced its intention to issue EU bonds worth up to euro80 billion in the second half of 2026, according to a statement from the European Commission, quoted by Agerpres.

Thus, the total planned issuance of EU bonds for 2026 will reach euro180 billion, in line with the Commission's previous indications for this year.

The proceeds will be used for EU policy programmes financed by borrowing on capital markets. These include payments to EU Member States under the NextGenerationEU programme, support for Ukraine (including payments under the new Support Loan for Ukraine), payments under the Security Action for Europe (SAFE) instrument and contributions to other EU programmes.

The Commission will continue to carry out all issuances under its unified financing approach, using a mix of long-term and short-term instruments. This approach allows the Commission to meet the payment needs of the growing range of policy programmes financed through capital market operations, supporting a stable model of EU bond issuance.

The Commission will also continue to issue NextGenerationEU green bonds based on the green expenditure reported by Member States under the Recovery and Resilience Facility. To date, euro84.3 billion has been mobilised through the issuance of NextGenerationEU green bonds. Such issuances may continue beyond 2026 as part of the rolling operations under the NextGenerationEU loan management.

The Commission has stated that it borrows on international capital markets on behalf of the EU and disburses funds to Member States and third countries under several loan programmes. EU loans are guaranteed by the EU budget, with contributions to the budget being an unconditional legal obligation of all Member States under the EU Treaties.

Using the proceeds from EU bonds and NextGenerationEU green bonds issued since mid-2021, the Commission has so far disbursed over euro241.8 billion in grants and euro166 billion in loans to EU Member States under the Recovery and Resilience Facility. Up to euro78.4 billion has been allocated to other EU programmes benefiting from NextGenerationEU funding, the Commission said.

EU loans will also continue to finance payments to Ukraine under the ongoing Ukraine Facility (where euro25.6 billion out of the total euro33 billion package has already been disbursed), as well as provide new support under the euro90 billion Ukraine Support Loan.

EU loans also finance the Security Action for Europe (SAFE) instrument, which supports the acquisition of defence-related capabilities through loans to member states and under which pre-financing payments started in May 2026, the Commission said.

Starting in January 2023, the Commission is issuing single-brand EU bonds, rather than separately labelled bonds for individual programmes, with transactions based on structured semi-annual financing plans and pre-announced issuance windows. In the second half of 2026, the Commission intends to execute the EU bond issuance through four syndications and six EU bond auctions. Auctions will continue to play an important role in the programme, with three-tranche tranches and non-competitive allocations following each EU bond auction supporting a flexible and efficient implementation of the financing plan. Short-term financing, including EU debt instruments, will also continue to complement the Commission's EU bond issuances, strengthening its capacity to manage financing needs, the Commission said.