BME's AIAF Market has admitted a new 500 million euro sustainable bond issued by the Andalusian Regional Government. The issue, which is third to be launched by the Andalusian Government under its Sustainable Financing Framework approved in March last year, features an annual coupon of 2.40% and a ten-year maturity. The three sustainable issues launched by the region’s Government under this programme total 2 billion euros.
Due to the high investing demand received during the placement, the issue’s spread over the Treasury was cut by three basis points from the starting price to 25 basis points.
The regional Government of Andalusia has a Baa2 rating from Moody's and a BBB+ rating from S&P. The issue was led by Banco Santander, BBVA, CaixaBank, Crédit Agricole CIB, HSBC and Banco Sabadell.
Almost half of the issue was placed with international investors and 72% of the total was allocated to sustainable investors, both in Spain and abroad.
"The addition of this new sustainable bond from the regional Government of Andalusia brings the volume of ESG issues registered in BME's Fixed Income markets to more to 100 billion euros, from public sector and private issuers. Having reached this symbolic figure demonstrates that sustainable finance arouses great interest among investors and all kinds of issuers" says Gonzalo Gómez Retuerto, General Manager of BME Renta Fija.