EU: €17 billion social bond issued to protect jobs. Von der Leyen, “first time in history”

The European Commission has today issued the first social obligation worth €17 billion under the SURE instrument to “help protect jobs and keep people in work”. The issuing consists of two bonds, a statement from Brussels explains: one worth €10 billion due for repayment in October 2030 and one worth €7 billion due for repayment in 2040. “There was very strong investor interest in this highly rated instrument, and the bonds were more than 13 times oversubscribed, resulting in favourable pricing terms for both bonds”. European Commission President Ursula von der Leyen stated: “For the first time in history, the Commission is issuing social bonds on the market, to raise money that will help keep people in jobs. This unprecedented step matches the extraordinary times we are living in. We are sparing no efforts to safeguard livelihoods in Europe”. And she added: “Countries hit badly by the crisis will receive support under SURE rapidly” (SURE is the acronym for Support to mitigate Unemployment Risks in an Emergency).
Valentina Bombelli