CaixaBank, Spain's leading financial group, today completed a ten-year issue of subordinated debt worth 1 billion euros, with a redemption option for the issuer in the fifth year. The placement attracted demand in excess of 2 billion euros.
This new issue diversifies and strengthens CaixaBank's capital structure and sources of financing, specifically Tier 2 capital. The issue price was established at 335 basis points over the midswap rate, the benchmark index for such issues. The coupon rate stood at 3.50%.
The issue earned an excellent response from institutional investors, with more than 160 orders and demand in excess of 2 million euros. 82% of demand was international.
The issue will have ratings of Ba2, BB+, BBB- and BBBH from Moody's, Standard & Poor's, Fitch and DBRS respectively.
The underwriting banks for this new issue were BofA Merrill Lynch, CaixaBank, Goldman Sachs International and HSBC.
This was the second institutional issue from CaixaBank so far this year. In January it placed 1.5 billion euros in 10-year covered bonds, attracting demand in excess of 2.4 billion euros.
