Investor Presentation - European Commission

Investor Presentation

European Union

AAA/Aaa/AA/AAA/AAA

29 January 2021

European Commission

• In the context of the Covid-19 crisis, the Council has adopted on 19

May 2020 the SURE regulation (“Support to mitigate Unemployment

Risks in an Emergency”).

• The Council has approved EUR 90.3 billion in loans to 18 Member

States with a maximum average maturity of 15 years.

• The proposed loans will assist Member States to cope with sudden

increases in public expenditure to preserve employment.

• All Member States are eligible. Further loan amounts can be allocated

up to the maximum ceiling of EUR 100 billion.

• The Commission issues bonds on behalf of the European Union and

on-lends the funds based on individual loan agreements concluded

with the beneficiary member states (back-to-back lending).

SURE (1)New EU loan programme with a ceiling of EUR 100 billion

EU-27 map (without certain territories),for illustrational purposes only, source: EC

2

• The EU has established an ICMA-compliant social bond framework for bond issuances under the SURE

programme.

• Newly issued bonds enjoy the same status as those issued in the past.

• EU bonds are and will remain direct and unconditional obligations of the EU. For the SURE instrument,

the EU member states have provided additional guarantees of EUR 25 billion to protect the budget.

• Funding operations for the SURE instrument are carried out following the signature of individual loan

agreements with Member States – the first funding transaction, a 10y/20y dual tranche totalling EUR 17

billion, has taken place on 20 October 2020.

• Total issued amount in 2020: EUR 39.5 billion with maturities of 5, 10, 15, 20 and 30 years.

• Total issued amount in 2021 so far: EUR 14 billion (dual tranche 7y + 30y tap).

SURE (2)New EU loan programme with a ceiling of EUR 100 billion

3

SURE (3)

€7,800

Belgium

€2,000

Czechia

€602

Lithuania

€4,000

Romania

€511

Bulgaria

€2,700

Greece

€244

Malta

€631

Slovakia

€1,000

Croatia

€479

Cyprus

€2,500

Ireland

€11,200

Poland

€1,100

Slovenia

€5,900

Portugal

€21,300

Spain

All amounts are in €million

€504

Hungary

Approved financial support of €90.3 billion to 18 Member States*

4

€192

Latvia€27,400

Italy

SURE (4)SURE transaction #1 – 10y/20y dual tranche issued on 20/10/2020

• The EU‘s inaugural SURE

issuance was priced on

20/10/2020 and met very

high demand from

investors (combined order

book above €230bn).

• It was the EU‘s first „dual

tranche“ issue, offering

simultaneously two tenors.

• The first SURE proceeds

were disbursed on

27/10/2020, five business

days after the transaction.

5

SURE (5)SURE transaction #2 – 5y/30y dual tranche issued on 10/11/2020

• The EU‘s second SURE

issuance came on

10/11/2020, swiftly after

the programme‘s debut

transaction.

• Again very high demand

from investors (combined

order book above €175bn).

• The SURE proceeds were

disbursed on 17/11/2020 to

nine beneficiary member

states.

6

SURE (6)SURE transaction #3 – 15y single tranche issued on 24/11/2020

• The EU‘s third SURE

issuance came on

24/11/2020, exactly two

weeks after SURE #2.

• Again very high demand

from investors (order book

above €114bn).

• The proceeds of SURE #3

were disbursed on

1/12/2020 to five countries.

• This bond concluded

SURE issuance for 2020.

7

Source: Bloomberg

Note: EU 11/2050 issued in 17/11 was tapped on 26/1/2021 by EUR 4 billion (issue date: 2/2/2021).

8

SURE bonds – total: EUR 53.5bn

ISIN maturity Issue Date Maturity

Outstanding amount

(€ million) Coupon

EU000A284451 5y 17/11/2020 04/11/2025 8.000 0%

EU000A287074 long 7y 02/02/2021 02/06/2028 10.000 0%

EU000A283859 10y 27/10/2020 04/10/2030 10.000 0%

EU000A285VM2 short 15y 01/12/2020 04/07/2035 8.500 0%

EU000A283867 20y 27/10/2020 04/10/2040 7.000 0,10%

EU000A284469 30y 17/11/2020 04/11/2050 10.000 0,30%

total: 53.500

“Support to mitigate Unemployment Risks in an Emergency” (SURE) – see slides 2-8.

European Financial Stabilisation Mechanism (EFSM):

Established in 2010. In principle all EU Member States can receive support, up to an agreed limit of EUR 60 billion, of which EUR 13.2

billion are available (EUR 46.8 billion disbursed to Ireland and Portugal between 2011 and 2014). The EFSM continues to be active as

loans with maturities up to 2026 can be extended, up to an average maturity of 19.5 years.

The Balance of Payments (BoP) programme provides support up to EUR 50 billion to non-euro-area Member States. Nocurrent programme. EUR 200 million (Latvia) are still outstanding*.

Macro-Financial Assistance (MFA)

is a financial aid programme to assist non-EU countries. EUR 5.79 billion are currently outstanding*.

*as of 15/01/2021

The European Commission, on behalf of the EU, operates four loan programmes, which are funded

in the capital markets:

Funding framework

9

“Support to mitigate Unemployment Risks in an Emergency” (SURE):

Up to EUR 45 billion in Q1 and Q2, of which 31 billion remaining

• EUR 39.5 billion have been borrowed under SURE in 2020 with 5y, 10y, 15y, 20y and 30y maturities.

• EUR 14 billion funded on 26 January 2021 (7y + 30y dual-tranche)

• Expected further SURE issuance in Q1: up to €20bn

• It is expected that the current SURE programmes will be concluded to a large extent by mid-2021.

European Financial Stabilisation Mechanism (EFSM): EUR 9.75 billion in Q2/2021

Maturity lengthening operations for Portugal and Ireland are expected for 2021 with loans coming due in June (EUR 4.75 billion) and

September (EUR 5 billion). The roll-overs will be funded several weeks ahead of the due dates.

Macro-Financial Assistance (MFA): EUR 2.35 billion in 2021

• For ten different third countries, the Council and the EP have adopted a EUR 3 billion “Covid-19” MFA package, to be disbursed in

several tranches and on top of “regular” MFA programmes.

• EUR 1,155 million have been raised in 2020 through a private placement and two syndicated taps on EU 6/2035.

EU Funding Plan 2021Up to EUR 57 billion in 2021, of which 43 billion remaining: up to €20bn in Q1, €20-25bn in Q2, plus MFA

10 This funding plan only includes existing programmes.

• On 10 December 2019, the European Commission, acting on behalf of the issuers European Union (EU) and

European Atomic Energy Community (EURATOM), signed and released a new Debt Issuance Programme (DIP)

which is governed by Luxembourg law.

• Following the United Kingdom’s decision to exit the European Union, a new programme was commissioned to align

its jurisdiction to that of an EU Member State. Credit Agricole CIB acts as arranger.

• Debut issuance of this new programme (EU 6/2035, nominal amount: EUR 500 million) happened on 3 June 2020.

• In principle all EU/Euratom bonds are listed at the Luxembourg Stock Exchange. The Offering Circular (Base

Prospectus) and further related information can be found at the Exchange’s website:

https://www.bourse.lu/issuer/UE/24055

https://www.bourse.lu/issuer/Euratom/24057

• The former EMTN programme for EU/Euratom (governed by English law and last updated on 12 March 2015)

remains in place.

New Debt Issuance Programme

11

https://www.bourse.lu/issuer/UE/24055

https://www.bourse.lu/issuer/Euratom/24057

Characteristics of EU funding in general

Funds raised

are so far

entirely lent

back-to-back to

the beneficiary

country

All bonds are

issued with an

“EU” ISIN

number

All bonds are

issued under

the EU’s Legal

Entity

Identifier (LEI)

529900FZRK8

FGMPEOM08

Funding

exclusively

denominated

in euro

Maturities:

3 - 30 years

Syndicated

bond issues

(or private

placements),

usually under the

Luxembourg law

Debt Issuance

Programme

12

EUR 3 billion “COVID-19” MFA package

13

• The €3bn MFA “Covid” package is

on top of existing MFA programmes.

• First funding transaction for this

“Covid 19” MFA package on

29/9/2020 (€160 million private

placement) to finance disbursements

to three countries: Kosovo,

Montenegro and North Macedonia.

• Second transaction (€395 million tap

on EU 6/2035) in November for

Jordan, Georgia and Moldova.

• Third disbursement (€600 million for

Ukraine) in December 2020.

• €2.35 billion are remaining under

current MFA programmes.

13

• Ireland and Portugal have the option to lengthen the maturity of their EFSM loans up to a weighted average maturity

of 19.5 years (2013 Eurogroup/Ecofin decision).

• All loans/bonds with maturities up to 2026 may be refinanced prior to their redemption date. The back-to-back

principle between EU borrowing and lending operations will be fully maintained. The next eligible loans are maturing

in 2021.

• For Ireland, EUR 3.9 billion were re-financed in 2018, following the first refinancing operations of 2015 (EUR 5

billion). The average maturity of Ireland's EFSM loans is currently 17.1 years.

• For Portugal, an amount of EUR 600 million was re-financed in 2018, following the first refinancing operations of

2016 (EUR 4.75 billion). The average maturity of Portugal's EFSM loans is currently 15.3 years.

14

EFSM financial assistance packages

Ireland€ 22.5 bn1

Portugal€ 24.3 bn2

1 The Irish loan programme comprised € 67.5 billion in total

including EFSF, IMF and bilateral loans.

2 The loans disbursed to Portugal amounted to € 76.3 billion in total

including EFSF and IMF loans.

14

European Union – Ratings (1)

Agency Rating Rating agency comments

AAA /

Outlook

stable

On 25 February 2020, Fitch affirmed the EU's AAA long-term rating with stable outlook.

As supranational administrative bodies, the EU's and Euratom's 'AAA' ratings are ultimately based on the capacity

and propensity of 'AAA'-rated EU member states to provide extra funding to the EU, above their initial budget

contributions, if needed to repay debt.

In addition to lending, the EU has provided an increasing amount of guarantees in recent years. In Fitch's view, the

financial risk that these guarantees represent for the EU is largely mitigated by a prudent framework of guarantee

funds that should be sufficient to cover future calls on these guarantees given the likely staggered scheduling of

claim payments.

Aaa /

Outlook

stable

On 18 September 2020, Moody's affirmed the EU's Aaa long-term rating with stable outlook.

The decision to affirm the Aaa rating reflects the following key rating factors:

The very high commitment of EU members to ensuring the continued soundness of the EU's finances and their very

high capacity to do so given the significant credit strength of the EU’s most highly rated members;

The multiple layers of debt service protection, including explicit recourse to extraordinary support which, in Moody’s

view, creates the equivalent of a joint and several undertaking and obligation on the part of EU member states to

provide financial support to the EU.

AA /

Outlook

positive

On 31 July 2020, S&P revised the outlook on EU’s AA long-term rating to positive and affirmed the rating.

S&P sees the decisions on the Multiannual Financial Framework and the joint recovery fund as a sign of the EU's

strengthened policy importance, which is one of the rating agency’s key rating factors for supranational entities.

The long-term rating on the EU relies on the capacity and willingness of the 11 wealthiest EU members (including

the U.K., which is required to contribute to the EU budget until the end of the 2014-2020 MFF) that are net

contributors to the EU budget.

15

European Union – Ratings (2)

Agency Rating Rating agency comments

AAA* /

Outlook

stable

On 25 September 2020, DBRS Morningstar confirmed its unsolicited long-term rating of the EU at AAA stable.

DBRS Morningstar rates the EU at AAA primarily based on its Support Assessment. This is underpinned by the

creditworthiness of its core member states and their strong, continued political commitment to support the EU’s

obligations, which provide the institution with multiple sources of support.

At the same time, the EU’s conservative budgetary management is expected to remain sound. Multiple

arrangements that protect creditors remain in place as well as the institution’s de facto preferred creditor status.

The Stable trend reflects DBRS Morningstar’s view that the EU’s recent decision strengthen Member State’s

commitment to the Union and compensate for the risks arising from the large increase in EU debt expected in the

next few years.

AAA* /

Outlook

stable

On 30 October 2020, Scope confirmed its unsolicited long-term rating of the EU at AAA stable, based on the following

key credit strengths:

Highly-rated shareholders,

Strong institutional setup providing de facto joint and several support, debt service priority and budget

flexibility, and

High liquidity buffers.

The Stable Outlook reflects our assessment of the EU’s high buffers for withstanding shocks.

Credit weaknesses taken into account comprise a significant increase in debt, crisis-country exposure, high

shareholder concentration and high guarantees to EIB operations.

* unsolicited

16

• EU borrowings are direct and unconditional obligations of the EU. The EU is legally bound by the Treaty on the

Functioning of the EU (Article 323) to service the EU debt.

• The EU’s debt service is ensured based on multiple layers of debt-service protection. In principle, the EU pays its

own debt with the loan redemption payments received from the loan beneficiaries (back-to-back lending). EU loan

beneficiaries have always serviced their debt.

• In the unlikely event of non-payment of a loan beneficiary, the EU budget guarantees that the EU timely honours its

obligations. To this end, the Commission can make available its cash buffer, re-prioritise budgetary expenditure and,

if needed, draw additional resources from Member States.

• The budgetary margin (difference between own-resources annual ceiling of the multi-annual financial framework

(MFF) and the actual payment appropriations of the EU budget) serves as protection to investors by providing

coverage against unexpected payment obligations. For the SURE programme, Member States provide additional

guarantees of EUR 25 billion.

• EU borrowing has traditionally been used to finance loans to countries – both EU Member States and third countries

eligible for MFA assistance. Subject to European Council agreement on the Recovery Plan (July 2020), the

Commission will be exceptionally empowered to borrow to fund crisis-repair and recovery actions through the Next

Generation EU programme once this agreement has been ratified by the European and national Parliaments.

European Union – Credit strengths

17

8,0

10 10

8,5

7

10

5,0

2,72,0

2,6

2,4

4,03,0

2,3

1,42,25

3,02,1

2,0

1,01,8

3,0

0,6

0,92

0,910,52

1,93

4,75

1,5

0

1

2

3

4

5

6

7

8

9

10

11

12

13€ billion per calendar year

SURE EFSM MFA

EU outstanding amounts of benchmark bonds

1818

Interpolated yield curve of EUversus Germany and France

Source: Bloomberg, 29 January 202119

-0,8

-0,6

-0,4

-0,2

0,0

0,2

0,4

0,6

Jan-21 Sep-23 Jun-26 Mar-29 Dec-31 Sep-34 Jun-37 Mar-40 Nov-42 Aug-45 May-48 Feb-51 FR

DE

EU

Yields of EU, Germany and France

Interpolated yield curve of EUversus KfW and ESM


-0,7

-0,6

-0,5

-0,4

-0,3

-0,2

-0,1

0,0

0,1

0,2

Jan-21 Sep-23 Jun-26 Mar-29 Dec-31 Sep-34 Jun-37 Mar-40 Nov-42 Aug-45 May-48 Feb-51

ESM

KfW

EU

Yields of EU, KfW and ESM

EU and peers - 5 year spread to Germany


+0,0

+10,0

+20,0

+30,0

+40,0

+50,0

+60,0

+70,0

Spread to Germany5y bonds

EU 09/2026 EFSF 05/2026 EIB 10/2026 ESM 03/2026 FRTR 11/2026 KFW 09/2026



+0

+10

+20

+30

+40

+50

+60

+70

+80Spread to Germany

10y bonds




+0

+10

+20

+30

+40

+50

+60

+70

+80

+90

+100

Spread to Germany15y bonds


* I-Spread levels as of 29/01/2021 - Source: Bloomberg ** first number: spread at issuance, remaining: spreads of taps

Coupon & maturity Payment date Exact maturity Amount (€)Spread vs. mid swap (bps)

at issuance current*

EU 3.500% 06/2021 31-05-2011 04-06-2021 4,750,000,000 14 -11

EU 2.750% 09/2021 21-09-2011 21-09-2021 5,000,000,000 20 -13

EU 2.750% 04/2022 04-05-2012 04-04-2022 2,700,000,000 56 -17

EU 0.625% 11/2023 01-10-2015 04-11-2023 3,500,000,000 -12 / -15** -16

EU 1.875% 04/2024 25-03-2014 04-04-2024 3,200,000,000 +9 / +6 / +3** -16

EU 0.500% 04/2025 06-02-2018 04-04-2025 2,400,000,000 -23 -16EU 0.000% 11/2025 17-11-2020 04-11-2025 8,000,000,000 -9 -19EU 3.000% 09/2026 29-09-2011 04-09-2026 4,000,000,000 40 -18

EU 2.500% 11/2027 30-10-2012 04-11-2027 3,000,000,000 36 -18

EU 2.875% 04/2028 03-07-2012 04-04-2028 2,300,000,000 68 -18

EU 0.000% 06/2028 02-02-2021 02-06-2028 10,000,000,000 -16 -16EU 1.375% 10/2029 12-11-2014 04-10-2029 2,245,000,000 +3 / +2 / -5** -21

EU 0.000% 10/2030 27-10-2020 04-10-2030 10,000,000,000 3 -16

EU 0.750% 04/2031 13-04-2016 04-04-2031 3,160,000,000 +2 / -12 / -26** -19

EU 3.375% 04/2032 05-03-2012 04-04-2032 3,000,000,000 78 -17

EU 1.250% 04/2033 06-03-2018 04-04-2033 2,615,000,000 -17 / -14 / -5** -17

EU 0.125% 06/2035 10-06-2020 10-06-2035 1,655,000,000 8 / -1.3 / -5 / -10** -12EU 0.000% 07/2035 01-12-2020 04-07-2035 8,500,000,000 -5 -11EU 1.500% 10/2035 22-09-2015 04-10-2035 2,000,000,000 4 -13

EU 0.500% 12/2035 03-07-2019 04-12-2035 250,000,000 -6 -11

EU 1.125% 04/2036 15-03-2016 04-04-2036 1,000,000,000 8 -11

EU 3.375% 04/2038 24-04-2012 04-04-2038 1,800,000,000 87 -11EU 0.100% 10/2040 27-10-2020 04-10-2040 7,000,000,000 14 -8EU 3.750% 04/2042 16-01-2012 04-04-2042 3,000,000,000 125 -3

EU 0.300% 11/2050 17-11-2020 04-11-2050 10,000,000,000 21 / 5 +4

EU: outstanding benchmark bondsissued since 2011

24

Outstanding EU loans by programme

BOP (Latvia); 0,2%

EFSM (Ireland); 21,2%

EFSM (Portugal); 22,9%

MFA ; 5,4%

SURE (Italy); 19,7%

SURE (Spain); 10,4%

SURE (others); 20,2%

Distribution of outstanding loans by programme

As of 29/01/202125

SURE benchmark bonds since 2020Investor distribution (after allocation)

UK23,0%

Germany19,7%

France12,5%

Benelux11,5%

Nordics7,3%

Other Europe7,0%

Asia6,3%

Italy6,3%

Americas2,4%

Middle East & Africa

2,0%

Switzerland1,8%

Rest of World0,2%

Investor distribution by region

EU dual-tranche (10y/20y) under SURE 2020: €17 billion

EU dual-tranche (5y/30y) under SURE 2020: €14 billion

Fund Managers38%

Bank Treasuries

27%

Central Banks / Official

Institutions19%

Insurance and Pension Funds

9%

Banks3%

Hedge Funds2%

Investor distribution by type

26

EU 15y under SURE 2020: €8.5 billion

EU dual-tranche (7y/30y tap) under SURE 2021: €14 billion

EUR 10 billion 0.000% Benchmark due 4 October 2030

Key terms Investor distribution by type

Issuer European Union (EU)

Issuer ratingsAAA stable (DBRS) / AAA stable (Fitch) / Aaa stable (Moody’s) / AA

positive (S&P) / AAA stable (SCOPE)

Pricing date 20 October 2020

Settlement date 27 October 2020

Maturity date 04 October 2030

Size € 10 billion

Coupon 0,000%

Re-offer spread MS +3 bps Investor distribution by region

Re-offer price 102.396%

Re-offer yield -0.238%

ISIN / Common

Code / WKNEU000A283859 / 224963122 / A28385

Listing Luxembourg Stock exchange

Denominations EUR 1,000

Bookrunners Barclays, BNP Paribas, Deutsche Bank, Nomura, UniCredit

15%1%

37%

41%

6%

10yr - Distribution by Investor type

Bank Treasuries

Banks

Central Banks / OfficialInstitutionsFund Managers

Insurance and PensionFunds

9%

15%

12%

17%8%5%

4%

7%

3%

20%

10yr - Distribution by geography

AsiaBeneluxFranceGermanyNordicsOther EuropeAmericasSouthern EuropeMiddle East & AfricaUK

27

EUR 7 billion 0.100% Benchmark due 4 October 2040





Pricing date 20 October 2020

Settlement date 27 October 2020

Maturity date 04 October 2040

Size € 7 billion

Coupon 0,100%

Re-offer spread MS +14bps Investor distribution by region


Re-offer yield 0.131%

ISIN / Common

Code / WKNEU000A283867 / 224963149 / A28386



Bookrunners Barclays, BNP Paribas, Deutsche Bank, Nomura, UniCredit

25%

3%

13%46%

13%


Bank Treasuries

Banks



1%

16%

19%

24%

6%1%

5%

10%

2%16%


AsiaBeneluxFranceGermanyNordicsOther EuropeAmericasSouthern EuropeMiddle East & AfricaUK

28

EUR 8 billion 0.000% Benchmark due 4 November 2025





Pricing date 10 November 2020

Settlement date 17 November 2020

Maturity date 4 November 2025

Size € 8 billion

Coupon 0,000%

Re-offer spread MS -9 bps Investor distribution by region

Re-offer price 102.566 %

Re-offer yield -0.509 %

ISIN / Common

Code / WKNEU000A284451 / 225919232 / A28445



BookrunnersBofA Securities, Commerzbank, Credit Agricole CIB, DZ BANK and

TD Securities

16%

8%

13%

10%8%

3%

7%2%

10%

24%


Asia & Middle EastBeneluxFranceGermanyNordicsOther EuropeAmericasSwitzerlandSouthern EuropeUK

21%

3%

30%

33%

8%5%


Bank Treasuries

Banks


Hedge Funds


29

EUR 6 billion 0.300% Benchmark due 4 November 2050






Settlement date 17 November 2020


Size € 6 billion

Coupon 0,300%




ISIN / Common

Code / WKNEU000A284469 / 225919267 / A28446



BookrunnersBofA Securities, Commerzbank, Credit Agricole CIB, DZ BANK and

TD Securities

15%

4%

15%

38%

4%

23%

1%


Bank Treasuries

Banks


Hedge Funds


2%

8%

17%

29%7%2%2%

4%

11%

18%


Asia & Middle EastBeneluxFranceGermanyNordicsOther EuropeAmericasSwitzerlandSouthern EuropeUK

30

EUR 8,5 billion 0.000% Benchmark due 4 July 2035






Settlement date 01 December 2020

Maturity date 4 July 2035

Size € 8.5 billion

Coupon 0,000%

Re-offer spread MS -5bps Investor distribution by region



ISIN / Common

Code / WKNEU000A285VM2 / 226550453 / A285VM



BookrunnersCitigroup Global Markets Europe AG, HSBC, J.P. Morgan AG,

Landesbank Baden-Württemberg, Société Générale

20%

1%

15%

48%

2% 14%


Bank Treasuries

Banks


Hedge Funds


6%

13%

12%

22%11%

3%1%

7%

24%


AsiaBeneluxFranceGermanyNordicsOther EuropeRoWSouthern EuropeUK

31

EUR 10 billion 0.000% Benchmark due 2 June 2028





Pricing date 26 January 2021

Settlement date 02 February 2021

Maturity date 2 June 2028

Size € 10 billion

Coupon 0,000%

Re-offer spread MS -16bps Investor distribution by region



ISIN / Common

Code / WKNEU000A287074 / 229459163 / A28707



BookrunnersBarclays Bank Ireland, Commerzbank, Deutsche Bank, Goldman

Sachs Bank Europe SE, LBBW

39,0%

34,7%

18,9%

4,5%

1,7% 1,2%


Bank Treasuries

Fund Managers

Central Banks / OfficialInstitutionsBanks

Hedge Funds


34,7%

14,0%9,0%

8,8%

8,4%

7,8%

7,3%

4,1%4,1% 1,8%


UKGermanyItalyBeneluxFranceOther EuropeAsiaNordicsMiddle East & AfricaSwitzerland

32

EUR 4 billion 0.300% - TAP Benchmark due 4 November 2050





Pricing date 26 January 2021

Settlement date 02 February 2021


Size € 4 billion (reopening of existing line)

Coupon 0,300%




ISIN / Common

Code / WKNEU000A284469 / 225919267 / A28446



Bookrunners Barclays Bank Ireland, Commerzbank, Deutsche Bank, Goldman

Sachs Bank Europe SE, LBBW

30,0%

46,2%

4,3%

6,5%

2,0% 11,0%


Bank Treasuries

Fund Managers

Central Banks / OfficialInstitutionsBanks

Hedge Funds


16,4%

33,4%

11,7%

13,3%

8,2%

7,5%

0,5%6,8%

0,1%1,6% 0,5%


UKGermanyItalyBeneluxFranceOther EuropeAsiaNordicsMiddle East & AfricaSwitzerlandRest of World

33

34

Synopsis of European supranational issuersEuropean Union (EU) EFSF (data as of 10/11/2020) ESM (data as of 10/11/2020) EIB (data as of 30/06/2020)4

Legal

Foundation

Supranational body established under EU

Treaty (TFEU)

Private Company ('Societe

Anonyme') incorporated under

Luxembourg Law, founded on an

international agreement

International financial institution

established under international

treaty - Multilateral Lending

Institution (since October 2012)

Autonomous public financial institution

established under EU Treaty (TFEU, Art. 308) -

Multilateral Lending Institution

Lending

capacity

SURE: €100 bn; Utilised €39.5 bn

EFSM: €60 bn

Utilised: €46.8 bn; Outstanding: €46.8 bn

BoP: €50 bn,

Utilised: €13.4 bn; Outstanding: €0.2 bn

MFA: no ceiling, €5.79 bn outstanding

€440 bn

Utilised: €172.61 bn,

Outstanding: €172.61 bn

€500 bn

Utilised: €89.9 bn,

Outstanding: €89.9 bn

Available capacity: €410.1 bn

250% of subscribed capital, reserves, non-

allocated provisions and profit and loss account

surplus, less equity participations (excluding loan

substitutes):

Loans disbursed: €428bn

Loans to be disbursed: €101bn

Mandate Provide financial assistance to countries

in financial and economic difficulty in

order to promote economic and social

integration of the member states

Provide financial assistance to

euro area member states in

difficulties in order to safeguard

financial stability in Europe

Provide financial assistance to

euro area member states in

difficulties in order to safeguard

financial stability in Europe

EU's long-term lending institution: finances

sustainable investment projects that contribute to

EU policy objectives. More than 90% of activity in

EU.

Shareholders 27 EU member states 17 euro area member states

(without Latvia and Lithuania)

All 19 euro area member

states

27 EU member states

Support to

Bondholders

EU budget and member states' obligation

to provide the funds necessary to meet

the EU’s legal obligations.

EU Budget 2020:

€153.6 bn in payments (€168.7 bn in

commitments).

Explicit, irrevocable and

unconditional guarantee of the

members; 'several' liability except

for Member States in a

programme (‘stepping out’ )

€724.4 bn overall guarantees;

bond issuance backed by up to

165% over guarantees.

Share capital comprising paid

in capital and callable capital.

Explicit, irrevocable and

unconditional obligation to pay

the share of callable capital on

demand; 'several' liability

Callable capital: €624.25 bn

Paid-in capital: €80.55 bn

Explicit obligation on EIB's shareholders to pay

their own share of the callable capital, on demand

from the Board of Directors; 'several' liability.

Callable capital: €226.6bn

Paid-in capital reserves and surplus: €72.3bn

Subscribed capital: €248.8bn

Ratings¹ AAA/Aaa/AA/AAA²/AAA³ AA/Aa1/AA/AAA²/AA+³ AAA/Aa1/AAA/AAA²/AAA³ AAA/Aaa/AAA/AAA²/AAA³

¹ Fitch / Moody's / S&P / DBRS / SCOPE ² DBRS: unsolicited rating ³ SCOPE: unsolicited rating

4Based on EIB (unconsolidated) unaudited condensed interim financial statements under EU Accounting Directives, as of November 2020.34

Contacts – EU funding team

BUDGET E3: Borrowing and Lending operations

Jean-Pierre RAES, Head of Funding

Tel.: +352 4301 30070

Email: [email protected]

Stefan KOHLER, CFA, Senior Borrowing Manager

Tel.: +352 4301 37453


Lara PAVANELLO, Financial Officer

Tel.: +352 4301 33931


Thilo SARRE, Manager Borrowing & Lending

Tel.: +352 4301 38876


Ana-Mihaela DANIELESCU, Financial Officer

Tel.: +352 4301 36732


Directorate-General for Budget (BUDG), Directorate E 12 Rue Guillaume J. Kroll, L-1882 Luxembourg

Direct access to investor relations site:

http://ec.europa.eu/economy_finance/eu_borrower/index_en.htm

Bloomberg: EUEU

35

http://ec.europa.eu/economy_finance/eu_borrower/index_en.htm

Investor Presentation - European Commission

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Transcript of Investor Presentation - European Commission