European Union plans to price €13 billion social bonds in two parts

Chicago, March 23 – The European Union is selling a two-part offering of social bonds on Tuesday (Aaa/AA/AAA) with orderbooks reported to be in excess of €81 billion for both tranches, according to a market source.

The first tranche, expected with an €8 billion size and a maturity date of March 4, 2026, was launched with talk for a spread of mid-swaps minus 14 basis points.

The second tranche with a May 2, 2046 maturity is expected to be sized at €5 billion and is talked with a spread of mid-swaps plus 1 bp.

Morgan Stanley is handling billing and delivery on both tranches. BNP Paribas, Bank of America, DZ Bank and Societe Generale are also listed as bookrunners.

The social bonds are being distributed through Regulation S. Settlement is planned for March 30.

Proceeds will be used to finance programs with a positive social impact, in line with the SURE social bond framework.

The notes will be listed on the Luxembourg Stock Exchange.

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