ICO launches a bond issue for EUR 1 billion

18 October 2023

  • The operation has recorded a demand of more than EUR 2,3 billion, which demonstrates the confidence of the investor base in ICO bonds
  • International investors have shown significant interest, acquiring 76% of the issue

Today, the Official Credit Institute (ICO) (A/Baa1/A-/A from S&P/Moody's/Fitch/DBRS) has launched a public issue for EUR 1 billion maturing in May 2029. 

The demand generated by the operation demonstrates the confidence of the investor base in the bonds issued by the ICO. International investors have acquired 76% of the total issue, with demand in particular from Germany, Austria and Italy.

The order book has registered purchase requests from investors amounting to more than EUR 2.3 billion. This oversubscription has allowed the operation to close with a spread of 18 basis points over the Treasury reference for the same maturity, narrowing the starting price that had been set at a reference of 20 basis points. 

In the distribution by type of investor, banks accounted for 49% of the issue, fund managers for 23%, followed by central banks and official institutions with 19% and insurers and pension funds with 9%. 

The transaction, which pays a coupon of 3.80%, was led by BBVA, Citi Credit Agricole, and Santander. Bred Banque Populaire and Jefferies participated as co-leads.

Throughout 2023, the ICO has raised EUR 5.8 billion with its medium and long-term issues, which it is earmarking to finance projects and the activity of the self-employed, SMEs and Spanish companies in its actions as a national promotional bank.