Press Release

BME admits a new 1 billion euro sustainable bond from the Basque Government

15 April, 2021
  • This is the fifth issue linked to Environmental, Social or Governance (ESG) principles carried out by the Basque Country.

BME, through the Bilbao stock exchange, today admitted a 1 billion euro sustainable bond issue to trading launched by the Basque Government. This is the fifth issue linked to Environmental, Social or Governance (ESG) principles carried out by the Basque Country and the first one this year.

The Basque Government will use the proceeds of this issue to finance the response to the exceptional situation generated by the Covid-19 pandemic. Last year it already launched two ESG bond issues, one worth 500 million euros in March and another for 600 million euros in November, earmarked for health, education and social policies.

The bonds have an annual coupon of 0.45% and maturity in April 2032.

Norbolsa, BBVA, Santander, Caixabank, HSBC and Deutsche Bank have participated in the placement of the issue, in which the demand tripled supply and 70% of which was placed with international investors.

The Basque Government is rated A3, stable outlook, by Moody's; AA-, negative outlook, by S&P; and A-, stable outlook, by Fitch.

This new issue reaffirms BME's role as a benchmark venue for the issuing of ESG bonds, both public and private. The interest of issuers and investors in this type of Fixed Income instruments is increasingly high and has been boosted by the Covid-19 pandemic.

You can view all ESG issues registered in BME's markets at:

https://www.bolsasymercados.es/ing/Sustainability/Sustainable-Finance

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