BME, through the Bilbao stock exchange, today admitted a 600 million-euro sustainable bond issue to trading from the Basque Government. It is the fourth issue by the Basque region linked to Environmental, Social and Governance (ESG) criteria and the second this year, after the 500 million-euro social bond registered in April.
86% of the issue amount will be earmarked for health, education and social policies, to deal with the situation generated by the Covid-19 pandemic, while the remaining 14% will be dedicated to financing environmental programmes.
The bonds have a term of 11 years and a 0.25% annual coupon.
Norbolsa, BBVA, Sabadell, Santander, Caixabank, HSBC and ING have participated in the placement of the issue.
The Basque Government has an A3 rating, stable outlook, by Moody’s; AA-, negative outlook, by S&P; and A-, stable outlook, by Fitch.
This sustainable issue from the Basque region follows the one made in February by the Madrid regional government, for an amount of 1.3 billion euros, and the health bond also issued by the Madrid region in May to finance the fight against Covid-19.