EU starts sale of first bonds to fund SURE unemployment scheme - lead manager

Credit: REUTERS/KAI PFAFFENBACH

The European Union on Tuesday began the sale of the first bonds that will fund its SURE unemployment scheme, a coronavirus support programme, according to a lead manager memo seen by Reuters.

AMSTERDAM, Oct 20 (Reuters) - The European Union on Tuesday began the sale of the first bonds that will fund its SURE unemployment scheme, a coronavirus support programme, according to a lead manager memo seen by Reuters.

The EU is selling 10 and 20-year "social" bonds -- a type of sustainable debt -- as announced on Monday.

Initial price guidance is 6 basis points over the mid-swap level for the 10-year bond and 17 basis points for the 20-year bond, the memo said. Pricing is expected later on Tuesday.

Barclays, BNP Paribas, Deutsche Bank, Nomura and UniCredit are managing the sale.

The deal kicks off the EU's vast funding spree to support coronavirus-hit member states, which will see it grow into one of Europe's leading debt issuers in the coming years.

(Reporting by Yoruk Bahceli; Editing by Dhara Ranasinghe)

((Yoruk.Bahceli@thomsonreuters.com; +44 20 7542 7571; Reuters Messaging: yoruk.bahceli@thomsonreuters.com))

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