The European Commission will issue €80 billion in bonds: part of the proceeds will go to Ukraine
24 June 15:58
The European Commission has announced its intention to issue EU bonds worth up to 80 billion euros in the second half of 2026, with part of the proceeds to be used to support Ukraine.
This is stated on the European Commission’s website, according to "Komersant Ukrainian".
“The funds will be used to finance EU policy programs funded through borrowing in the capital markets. This includes payments to EU member states under the NextGenerationEU program, support for Ukraine (in particular, payments under the new Loan for Ukraine), payments under the Security Actions for the EU (SAFE) instrument, and contributions to other EU programs,” the statement reads.
The European Commission noted that the proceeds from the bond issuance will continue to finance disbursements to Ukraine under the current Ukraine Facility program (under which 25.6 billion euros have already been disbursed out of a total package of 33 billion euros), as well as under the €90 billion Loan in Support of Ukraine.
“The Commission will continue to carry out all bond issuances in accordance with its unified approach to financing, using a combination of long-term and short-term instruments. This approach allows the Commission to meet the disbursement needs of a growing range of policy programs financed through capital market operations, while maintaining a stable structure for EU bond issuance,” the statement reads.
It was clarified that this decision will bring the total amount of EU bond issuance planned for 2026 to 180 billion euros, which is in line with the European Commission’s previous forecast for the year.
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Bond Issuance
The Commission borrows funds on international capital markets on behalf of the EU and allocates the funds to member states and third countries under various borrowing programs. EU borrowing is guaranteed by the EU budget, and contributions to the budget are an unconditional legal obligation of all member states under the EU treaties.
“Using funds raised from the issuance of EU bonds and NextGenerationEU green bonds since mid-2021, the Commission has so far allocated more than 241.8 billion euros to EU member states in the form of grants and 166 billion euros in the form of loans under the Recovery and Resilience Facility. Up to 78.4 billion euros has been allocated to other EU programs receiving NextGenerationEU funding,” the statement reads.
EU loans will also continue to finance disbursements to Ukraine under the current Initiative for Ukraine (where €25.6 billion has already been allocated from a total package of €33 billion), as well as provide new support under the 90 billion euro Loan Facility for Ukraine.
EU borrowing also finances the “Security for Europe” (SAFE) instrument, which supports the procurement of defense capabilities by providing loans to member states, and under which pre-financing began in May 2026.
To support financing needs and ensure continued access to capital markets on favorable terms, the Commission is constantly refining the structure and execution of its borrowing operations.
“Since January 2023, the Commission has been issuing EU bonds under a single brand, rather than separately branded bonds for individual programs, with transactions based on structured semi-annual financing plans and pre-announced issuance windows,” the statement reads.
Primary issuances are supported by the liquidity of the secondary market for EU bonds. The existence of a system that incentivizes EU primary dealers to quote EU securities on electronic platforms, as well as the availability of buyback options, improves the functioning of the EU bond ecosystem.
In the second half of 2026, the Commission plans to issue EU bonds through four syndicated offerings and six EU bond auctions. Auctions will continue to play an important role in the program, with three-stage tranches and non-competitive allocations following each EU bond auction contributing to the flexible and efficient implementation of the financing plan. Short-term financing, including EU bills, will also continue to complement the Commission’s EU bond issuances, strengthening its ability to manage its financing needs.
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