CaixaBank issues €1bn in 3-year senior bonds, attracting demand for over €5bn

The issue attracted more than 300 orders from institutional investors

• The price established for the issue, 285 basis points over the midswap rate, was better than anticipated thanks to significant oversubscription.
• The issue will strengthen CaixaBank's excellent liquidity levels. At the close of the third quarter the bank's liquidity stood at 48,755 million euro.
• 80% of the issue was placed among international investors.

CaixaBank, Spain's leading retail bank, today successfully issued €1bn in 3-year senior bonds, which attracted demand in excess of €5bn.

The issue price was established at 285 basis points over the midswap rate, the benchmark index for this kind of issue, which was below the initial price (310 bp) as a result of strong demand. The coupon rate was 3.25%, while the issue cost means a spread of 25 basis points over Spanish 3-year government bonds.

The issue come as part of the 2013 financial plan to reinforce CaixaBank's excellent liquidity position, a key feature of the bank's strategy of financial prudence. As per 30 September 2012 CaixaBank's liquidity stood at €48,755 million, nearly all of which is immediately available, which represents 14.2% of total assets. Furthermore, at the end of the third quarter the bank's solvency stood at 10.8% of core capital (Basel II).

CaixaBank took advantage of favourable market conditions to resume its program of institutional issues, while demonstrating the confidence that wholesale markets place in the bank and the value they see in its strengths. The issue, the first senior bond issue since 2010, was very well received by institutional investors, attracting more than 300 orders. The interest shown by international investors was particularly striking, demonstrating the interest that CaixaBank issues attract outside of Spain.

International investors take up 80% of the placement

80% of the issue was placed among international investors, mainly countries such as France, United Kingdom and Germany, with a strong showing from investment and pension fund managers, central banks, insurance companies and private banks. Take-up among Spanish investors stood at 20%.

CaixaBank expects the senior bond issue to receive long-term credit ratings from Moody's, Fitch and Standard & Poor's of Baa3, BBB and BBB- respectively. The operation is considered a benchmark issue, meaning the securities will be tradable on the leading global bond markets.

The underwriters were Barclays, CaixaBank, JPMorgan, Banco Santander and UBS.