Amount:€1.25bn Reg S only sustainable bond
Maturity:30 April, 2030
Spread at reoffer:14bp over the SPGB
Launched:Tuesday, February 18
Payment date:February 25
Joint books:Banco Sabadell, BBVA, Bankia, Deutsche Bank, HSBC, Santander
It’s a super result. It’s the tightest spread to the Spanish treasury ever for a region, as well as the largest order book.
We had over 230 accounts in the book. We started with initial price thoughts of 20bp area, then opened books at 20bp area with more than €3.5bn of orders. We got to €6bn and set the spread at 14bp. The book closed with €7.25bn of orders. There was no pushback on yield, even though we were close to or through fair value.
Our 2029 deal was at 14bp-14.5bp in the secondary market, and we’ve extended the curve a year.
We roadshowed the deal in France, the Netherlands and Germany, and did conference calls with investors elsewhere.
The sustainable feature helped build momentum. They come in early because they want the bonds.
We’ve now raised €2.2bn of our €4.2bn programme. We will likely do another syndication later in the year.
Other EU 2%
Other non-EU 3%
Distribution by investor type
Fund managers 45%
Insurance and pension funds 14%
Central banks 5%
“…really impressive. We expected it to do well, but not to get that kind of book.”
“…very good level and an incredible book.”