(Bloomberg) -- The European Union received orders in excess of €146 billion ($154.6 billion) for a sale of conventional and green securities in what is likely to be its final bond syndication of the year.
The bloc raised €7 billion through the syndicated offering, which was offered in two maturities to investors through a group of underwriters, rather than at an auction.
The seven-year security was priced at 47 basis points over comparable swaps, while the green 20-year note was offered at a spread of 95 basis points, both lower than earlier guidance, according to people familiar with the matter who asked not to be identified.
Debt syndications are typically more expensive than auctions, but they allow governments to raise large sums quickly while diversifying their investor base. Tuesday’s sale attracted orders for more than 20 times the amount of securities available, but less than the €166 billion a similar syndication drew last month.
The EU has scheduled a regular bond sale next week, which Commerzbank AG strategists suggests will probably mean an optional syndication in December is skipped.
In a boon to the appeal of EU debt, Intercontinental Exchange Inc. recently announced plans for a new futures contract for the bloc’s bonds next month.
The EU has touted a futures market as a way of boosting trading in its debt. However rival Eurex Clearing AG recently shelved plans to launch a futures contract this year, citing concerns around the sustainability of the EU’s bond program beyond 2026.
Bookrunners on the new deal were Bank of America Corp., Credit Agricole CIB, Deutsche Bank AG, HSBC Holdings Plc and Nomura Holdings Inc.
--With assistance from Colin Keatinge.
(Updates with final terms, orders)
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