The European Commission has started raising EUR 800 billion for its NextGenerationEU plan, with the inaugural sale of a 10-year bond on Tuesday 15 June that will help finance the fund.
Of the seven banks involved in the sale of the first bonds, Danske Bank was the only Nordic bank, with Nordic customers eventually being allocated 10 per cent of the total bond issue.
“We are very pleased to be part of this transaction, which is the largest ever bond issuance under the auspices of the EU. This has been a great opportunity for Danske Bank to be able to support both the EU and the team in its efforts to supply the best possible financing,” says Derry Hubbard, Global Head of Primary Markets at Danske Bank, to Børsen
“Assembling our very experienced team from across the company for this landmark deal has been a fantastic experience, and we look forward to assisting the EU again in the future,” adds Derry Hubbard.
An attractive assignment for major banks
Many major banks have been keen to join up to help sell the bonds, but according to the Financial Times, ten of the largest banks were excluded from selling the recovery bonds because of market manipulation or a breach of the EU’s competition laws.
“The Commission has implemented a strict approach to ensure the companies we collaborate with are capable of being counterparties to the EU,” said a spokesperson for the European Commission to the Financial Times.