CaixaBank has carried out its first public issuance in a non-euro currency, placing £500 million maturing in 5.5 years with an early redemption option in the last year by the issuer. It is its fourth issuance in 2021 and the seventh under the bank’s Sustainable Development Goals (SDGs) Bond Issuance Framework.
This issuance enables the bank to diversify its funding sources in the capital markets, expanding its investor base, as announced in its recent results presentation in April.
With this issuance, CaixaBank will finance renewable energy and energy-efficient building projects that contribute to environmental sustainability, through greenhouse gas reduction, pollution prevention, and the adaptation to climate change.
The price of the issuance is set at 132 basis points over the UK Treasury (UKT), 20 points under 150-155 basis points offered in the announcement and the coupon has been set at 1.50%.
The success of the issuance is reflected in the level of demand, which exceeded £2 billion, and the high quality of the placement, with 73.6% of the bonds awarded to investors recognised in the market as socially responsible investors (SRI). More than 100 investors participated in the issuance.
The entities in charge of the placement were CaixaBank, HSBC, Natwest and Nomura.
Leader in green, social and sustainable bond issuances
In August 2019, CaixaBank approved the Sustainable Development Goals (SDG) Bond Issuance framework, with the validation of Sustainalytics, featuring the mission of supporting the United Nations’ SDGs. Since the approval of this framework, not including today's issuance, CaixaBank has made six own bond issuances worth €6 billion.
The first Social Bond issued by CaixaBank in 2019 contributed to creating more than 1,000 companies and 8,200 jobs. In 2020, it issued its first Green Bond to fund renewable energy projects and energy-efficient buildings, and its second Social Bond to curb the effects of COVID-19. Furthermore, in the first months of 2021, it has already issued two Green Bonds through which it will channel funds to finance projects that contribute to environmental sustainability, and a social bond identifying assets to promote the SDGs 1 “No poverty”, 3 “Good health and well-being”, 4 “Quality education” and 8 “Decent work and economic growth”. These figures position CaixaBank as the European bank with the highest volume of ESG bonds issued in the euro market.
CaixaBank continues to consolidate its status as a leading institution in ESG issuances and a benchmark in socially responsible banking, a strategy that is being acknowledged by bonds investors. Noteworthy in this respect are the awards given by Environmental Finance publication, which recognised the first issuance conducted in September 2019, as the “Social Bond of the Year 2019”, and the inaugural Green issuance in November 2020, as the “Green Bond of the Year 2020”.
