Kutxabank has launched this Monday an issuance of 500 million euros in high-quality senior 'green' preferred debt, with an A senior rating, a final maturity of 6 years, and an early redemption option in the fifth year. Demand reached a 2.6x oversubscription, exceeding the 1.3 billion euros requested by the market.
As detailed by the Basque entity, the placement attracted a broad and highly diversified investor base, comprising around 90 national and international banks and fund managers, from various European countries as well as North America.
The high investor interest, which comfortably exceeded the initial amount of 500 million euros, allowed the operation to close with a tighter issuance margin than other comparable placements made recently. The bond's yield was set at 73 basis points over mid-swap, the usual benchmark for this type of issuance.
The new operation will have an A3/A/A rating from international agencies Moody's, Fitch, and DBRS, respectively, placing it among the best-rated issuances in the sector within this category of instruments. Santander, Credit Agricole, Nomura, Citibank, Barclays, and Kutxabank Investment acted as placement agents.
With this senior preferred green bond, Kutxabank advances in diversifying its funding sources and expanding its investor base, while significantly strengthening its liquidity position.
The funds raised through this issuance will be directed towards assets and projects with a positive environmental impact, driving the transition towards a low-carbon economy and promoting the development of sustainable finance.
In 2025, the financial group reinforced its ESG bond issuance framework, incorporating social categories and adapting it to market best practices with the aim of continuing to align its sustainability commitments with the Group's financing strategy.