CaixaBank places €1 billion of preferred senior debt, attracting demand in excess of €2.3 billion

• This is CaixaBank's first issue of the year and it is the fourth in the preferred senior debt format since 2017
• The positive reception from the investors has allowed CaixaBank to avoid paying a new issuance premium and to reduce the interest rate down by 22 bps to midswap +58 bps with respect to the level offered in the announcement
• The 0.375%-coupon is the lowest reached by CaixaBank in a senior debt issue
• CaixaBank has successfully placed the debt in a very active market and has received orders from 126 institutional investors, which underlines its widespread following among the main European investors and the acknowledgement of its credit strength

CaixaBank has made the most of the good market conditions to raise €1 billion of five-year bonds in preferred senior debt format. The price has been set at 58 bps over the mid-swap, and the coupon has been established at 0.375%. It is the lowest coupon reached by CaixaBank in senior debt.

The operation's success is evidenced by the demand, which has exceeded €2.3 billion and has brought the interest rate down by 22 bps to midswap + 58 bps with respect to the level offered in the announcement.

CaixaBank did not have to pay a new issuance premium due to the high quality demand. Other recent issues in preferred senior debt format have required conceding between 5-7 bps, which reflects CaixaBank's widespread following and, especially, the acknowledgement of its credit strength.

CaixaBank has successfully placed the debt in a very active market, which saw a very active day yesterday with an offering of €31 billion in the primary market, setting a historic issuance record for a single day in the euro market. A record followed by a highly active day in the market today as well.

The outstanding demand was matched by the book's quality. The transaction accumulated orders from 126 institutional investors and highlighted CaixaBank's consolidated granular investor base. As has become customary in the bank's last issues, the significant participation of foreign investors particularly stands out, amounting to 77% of the total, and includes the main investment funds in the UK, France and Germany, as well as the main insurer's and European banks treasuries.

Since 2018, CaixaBank has issued €10.8 billion of mortgage-covered bonds, preferred senior debt, non-preferred senior debt, Tier 2 subordinated debt and contingent convertible (CoCos) AT1 debt.

First issue of the year

This is the first institutional debt issue in 2020 by CaixaBank, led by Chairman Jordi Gual and with Gonzalo Gortázar as CEO, and the fourth preferred senior debt issue since 2017, a market it has called on every year since. CaixaBank's last preferred senior debt issue was in March 2019, placing €1 billion with a 7-year maturity at a price of 90 bps over the midswap. Today's issuance completes CaixaBank's credit curve, establishing a new short-term benchmark in a moment when there is a robust medium-term demand.

The issue will have ratings of Baa1, BBB+, BBB+ and A by Moody’s, Standard & Poor’s, Fitch and DBRS, respectively.

The underwriting banks of this issue have been Barclays, BNP Paribas, CaixaBank, Commerzbank and Credit Suisse.