- The EUR 500 million issue is the first by a sub-sovereign issuer to qualify for this new EU label, which seeks to improve transparency in ESG fixed income.
- BME's markets have around 150 medium and long-term ESG issues for a total of 26,500 million admitted to trading.
BME's AIAF Fixed Income Market has today admitted to trading the new bond issue under the EU Green Bond Standard (EUsGB) of the Community of Madrid. With this issue, the Community of Madrid becomes the first sub-sovereign issuer to qualify for this new European Union issuance label, which seeks to improve transparency in ESG fixed income. The issue has a volume of 500 million euros, reached a demand of 2,400 million euros from 89 investors in the placement, has a coupon of 2.487% and will be redeemed in July 2030.
The amount of this new European Green Bond (EU GBS) will be used to finance environmentally sustainable economic activities in accordance with Article 3 of Regulation (EU) 2020/852 of the European Parliament and the Council of 18 June 2020 on establishing a framework to facilitate sustainable investments, as detailed in the ‘European Green Bond Factsheet’ published by the Community of Madrid and verified by DNV Business Assurance Denmark.
The new bond is rated A with a stable outlook by S&P; Baa1 with a positive outlook by Moody's, A- with a positive outlook by Fitch, AH with a stable outlook by DBRS and A with a stable outlook by Scope.
BBVA, CaixaBank, Crédit Agricole CIB, ING Bank and Santander participated in the placement. A total of 68% was distributed among international investors, with accounts from Benelux (22%), the UK and Ireland (12%), and Asia and the Middle East (8%), and by type of investor, banks and private banks accounted for 38%, followed by investment funds (27%) and central banks and institutional bodies (27%).
With the admission of this new EU GBS bond, BME reinforces its commitment to the development of sustainable finances. The fixed income markets managed by BME have seen a gradual and increasing growth in issues labelled as ESG, green, social, sustainable and linked to sustainability, over the last few years, in line with the greater demand for this type of product from investors and the inclusion of sustainability policies among public administrations and private companies.
BME currently has around 150 ESG-labelled medium- and long-term fixed income issues listed on the its fixed income markets for a total amount of over EUR 26,500 million and around 30 commercial paper programmes with maximum outstanding balances of close to EUR 8,600 million. Sustainability has spread across the entire range of fixed income products, from ,commercial papers to highly sophisticated financing operations for renewable energy or transport infrastructure projects, including traditional bond issues, covered bonds and securitisations.
Among the wide range of issuers and fixed income products listed on BME are issuers such as the Spanish Treasury, ICO, all the Autonomous Communities, large corporations in the energy sector, industrial companies and national financial institutions, as well as medium-sized companies that are financed through the MARF with operations linked to sustainability.
For more information on ESG issues registered in BME's markets, click here.