The Madrid regional government has registered a new benchmark sustainable bond issue with AIAF, BME’s Fixed Income market, for an amount of 1.25 billion euros. This is the fifth sustainable bond issue registered with AIAF by this Public Administration, following those launched since 2016. In this way the Madrid Region becomes an issuer of reference in the field of sustainable finance and AIAF leverages its position as the benchmark market for this type of issues.
The bond’s individual value is 1,000 euros and they have a fixed annual interest rate of 1.571%. The final redemption date of the bonds is 30 April 2029.
BBVA, HSBC, ING, Banco Sabadell and Banco Santander have acted as Bookrunners. The Madrid regional government has a Baa1 rating, stable outlook, granted by Moody's; BBB +, stable outlook, by S&P and BBB, stable, by Fitch and A-, stable, by DBRS.
Gonzalo Gómez Retuerto, Managing Director of BME Renta Fija, stated that "Green and social bonds have become an asset class in its own right and are highly demanded by international investors." The total volume issued in 2018 of this type of asset exceeded 167 billion dollars. "The Spanish issuers rank an outstanding sixth position worldwide".
BME actively participates in the development of this market through the UN's Sustainable Stocks Exchanges initiative, of which it is a member together with other institutions and global exchanges.
The Madrid regional government was the first Spanish Public Administration to launch an issue in the bond market to specifically finance social projects, demonstrating the region’s serious commitment about those issues that are not strictly financial, such as climate change and social development.