CaixaBank issues 1 billion euros in five-year mortgage-backed securities

The issue attracted strong demand from Asian investors

• Demand for the issue exceeded 2.7 billion euros from 120 investors worldwide.
• This is the first 5-year issue from a Spanish bank this year.

CaixaBank today successfully placed a 1 billion euro five-year mortgage-backed securities issue on capital markets. This is the first 5-year issue from a Spanish bank this year and comes as part of the 2012 financial plan to improve CaixaBank's excellent liquidity position, which as at 31 December 2011 totalled 20.948 billion euros, 7.7% of total assets.

The issue price was established at 248 basis points over the midswap rate, the benchmark index for such issues. The coupon rate was 4%, which represents a spread of just 8 basis points over Spanish 5-year government bonds.

CaixaBank took advantage of favourable market conditions to re-establish contact with domestic and international investors, while demonstrating its ability to access wholesale markets. The issue was very well received by leading domestic and international investors, with standout demand coming from the Asian market, particularly China.

Specifically, the securities issued today attracted interest from a total of 121 investors worldwide and generated demand in excess of 2.7 billion euros. There was standout interest from investors such as investment fund managers, pensions, central banks, insurance companies and banks.

64% of the issue was placed amongst international investors. In terms of geographic distribution, highlights included France (22%), Germany (15%), United Kingdom (9%) and Asia and other countries (18%). Demand from Spanish investors represented 36%.

As with other mortgage-backed securities issuances from CaixaBank, the credit ratings agencies Moody's and Standard & Poor's are expected to give the issue long-term ratings of Aaa and AAA respectively, the highest for these issues. The operation is considered a benchmark issue, meaning the securities will be tradable on the leading global bond markets.

The underwriters were Barclays, CaixaBank, Crédit Agricole, JP Morgan and UBS.