CaixaBank issues its first Tier2 subordinated green bond for €1 billion

19/04/2021

CaixaBank, Spain’s leading retail bank, reinforced its position as a bank committed to society, the environment and the fight against climate change with the issuance, last month, of its first Tier2 subordinated green bond for €1 billion.

A transaction that was combined with a simultaneous buyback offer withthe aim of replacing traditional financing with green financing. 

The combined transaction allowed CaixaBank to optimise its capital ratios, reduce coupon, and more importantly, strengthen its current commitment to the Sustainable Development Goals with a total of three green bonds and two social bonds issued and a combined value of €5 billion.

The deal highlighted the strong investor appetite for green assets. Demand for the Tier 2 subordinated green bond exceeded €3 billion and the coupon was established at 1,25%, which represents the lowest coupon offered by CaixaBank in a subordinated debt issue. It also became the first issuance of a subordinated green bond in Tier 2 format by a Spanish bank.

CaixaBank will channel funds of this third green bond to finance projects that contribute to environmental sustainability, such as reducing greenhouse gases, preventing pollution and adapting to climate change. 

Specifically we will allocate the funds raised to promote the Sustainable Development Goals numbers 7 (affordable and clean energy) and 9 (industry, innovation and infrastructure) which aim to build resilient infrastructure, foster sustainable industrialization and promote innovation, explained the company in the press release. 

Société Générale played an active role on this combined transaction and acted as Joint Lead Manager on CaixaBank’s green Tier 2 and Joint Dealer Manager on the tender associated.

“ We are proud to accompany CaixaBank on this important transaction that combines regulatory capital, green bonds and liability management. It is another testimony of Societe Generale’s expertise and innovation capabilities in capital markets ”

Fernando García,
Head of DCM for Societe Generale in Spain and Portugal