Spain further increases its financial support to ecological transition

24/06/2022

The proceeds of a new €500 million green bond issuance will be allocated to projects aligned with the Spanish National Recovery, Transformation and Resilience Plan, including renewable energy, hydrogen production, energy efficiency, green buildings or clean transportation, among others.

Instituto de Crédito Oficial (ICO, the Spanish State Finance Agency) has successfully priced its fourth green bond with the aim of financing sustainable projects by Spanish companies that contribute to boost the ecological transition. 

Thanks to the funds raised in these operations, ICO has so far promoted 30 renewable energy and clean transport projects by Spanish companies, which have mobilized an investment of approximately 13 billion euros and will prevent the emission of more than 692,000 tons of CO2 per year.

The 4.5 year issuance was well received by the market, with a large participation of international investors, among which 88% of the operation was distributed. The orderbook was closed with a demand of over 1.1 billion euros, which allowed to tighten the final price to 9 basis points over Spanish bonos, reducing the spread initially set by 3 basis points.

The quality of the orderbook was also noteworthy, as 55% of the issue was placed with sustainable investors.
 

“ These statistics show investor confidence in ICO's work, both in its role as a green bond issuer and in its activity as a national promotional bank financing projects that boost the ecological transition ”

ICO in its press release

The operation brings the volume of green bonds issued by ICO to 2 billion euros and strengthens its commitment to the development of the market for this type of transaction. 
Societe Generale acted as Joint Bookrunner of this fourth green bond. 

“ We are very proud to accompany ICO and support its strategy aimed at financing projects linked to social and environmental sustainability, objectives that are completely aligned with ours at Societe Generale. ”

Fernando García,
Head of DCM for Iberia