The Spanish State Finance Agency updates its Social Bond framework and issues its first bond to address the consequences of the Covid-19 pandemic


Instituto de Crédito Oficial recently expanded its Social Bond Framework to bolster its committment to those sectors identified as a priority due to their social, cultural, innovative or environmental significance.

The updated framework reflects, among its main priorities, the will to finance social projects, increase job preservation and creation through SME and address the consecuences of Covid-19.

ICO issued a 500 million bond last week under this new framework in a very successful deal that was oversuscribed 7 times. 

ICO’s first bond framework, published in 2015, focused on employment generation and preservation and so far has been the reference to finance more than 53.600 projects. 

This new update goes one step further addressing other issues such as depopulation in certain areas in Spain, natural or health disasters, social housing, healthcare, education or affordable basic infraestructure, among others. The revised framework expands the scope of eligible social projects and notably captures expenditures related to the fight against COVID-19


ICO's role in addressing the consequences of the fight against Covid-19 pandemic is well reflected in the updated Framework. ICO is playing an important role in facilitating the maintenance of employment and mitigating the economic and social impacts of the pandemic in Spain.The categories included in the framework will not only help ICO mobilize funds towards healthcare activities, but also focus on the most vulnerable groups resulting from the Covid-19 outbreak, with a particular emphasis on SME, explains the company. 

Societe Generale played an important role as Structuring Advisor for ICO for the revised bond framework and joint bookrunner in the 500 million euros bond issuance last week.

We are mobilised more than ever for our clients in this unprecedented context and proud to support them through projects with positive social and economic impact,

Javier Guzmán,
Senior Banker for Societe Generale