Press Release

BME admits the first Green Bond from the Kingdom of Spain, worth 5 billion euros

14 September, 2021
  • The issue has a maturity of 20 years and will be used to finance projects that promote the objectives of the Spanish environmental agenda
  • The volume issued was 12 times oversubscribed, thus bringing the bond's yield down to 1.034% and reducing financing costs
  • With this placement, the volume of green bonds traded on BME’s AIAF market exceeds 47 billion euros

BME’s AIAF Fixed Income Market today admitted for trading the first green bond issue from the Kingdom of Spain, with a value of 5 billion euros. The bonds have an annual coupon of 1% and a term of 20 years. During the placement process the volume was oversubscribed 12 times, thus allowing a reduction of the spread with respect to the same term benchmark Treasury bond and contributes to lower average funding cost of its overall portfolio to 1.65%.

The proceeds from the placement will be used to finance projects that promote the objectives of the Spanish environmental agenda.

The issue is launched in accordance with the Kingdom of Spain's Green Bond Framework published last July, which features the highest environmental rating awarded to a sovereign issuer by the independent verifier Vigeo Eiris.

The placement has been distributed among 464 high quality end client accounts, mostly with investment objectives in sustainable financial assets and with a clear concentration among international investors (92%).

The admission of this first green bond from the Spanish Treasury increases the volume of such issues traded on BME's AIAF market to more than 47 billion euros.

The issue has been led by BBVA, Banco Santander, Barclays, Crédit Agricole, Deutsche Bank and JP Morgan.

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