The Official Credit Institute (ICO) has gone to the market this Tuesday to issue a green bond for an amount of 500 million euros and a maturity of five years. With this new placement, the total volume of sustainable debt issued by the entity stands at 4,000 million euros, as detailed in a note.
The order book has closed with requests for 3.25 billion euros, which represents a notable oversubscription compared to the amount finally awarded. This strong investor interest has made it possible to reduce the spread against the sovereign bond to four basis points, from the nine basis points that were offered at the start of the operation. The coupon has been set at 3.05%.
In this placement, 83% of the amount went to international investors. Furthermore, more than 52% of the issue was distributed among investors who integrate ESG criteria into their investment decisions, which "demonstrates once again investors' confidence in the Spanish economy," ICO stressed.
By geographical areas, orders from Asia and the Middle East stand out, accounting for 28% of the total. Spain follows, with 17%, and the Benelux region, with 13%. The remainder has been distributed among other European markets, such as Switzerland, the United Kingdom, or France, among other countries.
In the operation, BNP Paribas, Crédit Agricole, Citi, HSBC, and Santander have acted as placing entities, responsible for channeling demand and setting the final conditions of the green issue.
Regarding the profile of the buyers, central banks and official institutions have taken 45% of the amount. They are followed by commercial banks and fund managers, with 21% and 20%, respectively. Insurers and pension funds have captured 12% of the issue, while hedge funds have taken the remaining 2%.