CaixaBank successfully places a €1 billion Tier 2 social subordinated debt issuance, aimed at financing social projects

• The entity has achieved the lowest spread in its history and the tightest issued by a Southern European bank since 2021 for a Tier 2 bond of this maturity or longer 

• The issuance attracted strong demand with significant international diversification, with the final order book exceeding €1.9 billion, representing an oversubscription of twice the offer 

• This transaction marks CaixaBank’s first euro-denominated Tier 2 social bond, with the use of proceeds aligned with the ICMA Social Bond Principles. It is the bank’s seventh social bond and the second ESG-bond issued in 2025 

CaixaBank has today completed its seventh public debt issuance in 2025, with a €1 billion Tier 2 subordinated bond featuring social characteristics. This reinforces its leadership in sustainable financing and its diversified access to capital markets.

The bank successfully took advantage of a favourable market window amid growing macroeconomic uncertainty and during a record week in terms of primary market supply. The pricing was set at 145 basis points (bps) over midswap, representing a tightening of 20–25 bps from the initial price range of MS+165–170 bps, thanks to strong demand, with the final order book exceeding €1.9 billion. CaixaBank achieved the lowest issuance spread in its history and the tightest spread for a Tier 2 bond of this maturity or longer issued by a Southern European bank since 2021. The coupon was set at 3.875%. The bond has a maturity of 12.5 years and includes a call option at year 7.5 (12.5NC7.5).

This is the bank’s fourth capital instrument issuance so far this year, strengthening its solid solvency position as part of its capital structure optimization strategy. As of the end of 3Q2025, the bank has an MDA of 376 bps, a CET1 ratio of 12.4%, and a total capital ratio of 16.9%, well above the minimum requirements set by the SREP, which stand at 8.7% and 12.9%, respectively.

Since CaixaBank’s last Tier 2 issuance in February this year, the instrument’s rating has been upgraded to Baa2 by Moody’s and to BBB by S&P, reflecting the continued strength of the bank’s credit profile. Fitch and DBRS maintain their ratings at BBB and A low, respectively.

This transaction represents CaixaBank’s first social Tier 2 bond issuance and its sixteenth ESG bond overall, consolidating its position as one of Europe’s leading institutions in environmental, social, and governance (ESG) bond issuance. The bank’s most recent ESG-format issuance was in June 2025, when it placed €1.25 billion in a green senior preferred bond.

Commitment to social development

Through the issuance of this new social bond, CaixaBank will channel funds to finance activities and projects that contribute to fighting poverty and promoting economic and social development in the most disadvantaged areas of Spain. In addition, CaixaBank identifies as eligible those projects and activities focused on promoting gender equality, reducing inequality, and supporting social housing.

As of December 31, 2024, CaixaBank’s eligible social portfolio amounted to more than €9.7 billion, distributed as follows: €4.59 billion in sustainable employment generation projects; €2.26 billion in financial inclusion projects; €1.22 billion in projects that promote access to essential health-related services; €977 million in projects that foster gender equality; €297 million in local social projects aimed at promoting socioeconomic progress and empowerment, managed by NGOs, religious organizations, foundations, or for-profit entities investing in rural communities in Spain or in emerging or developing countries; €185 million in affordable housing projects; and €179 million in projects that improve access to essential education-related services.

Nine green bonds and seven social bonds

Today’s issuance marks CaixaBank’s seventh social bond. The bank was the first Spanish financial institution to issue a social bond in support of the UN Sustainable Development Goals (SDGs) in September 2019. Since then, CaixaBank has issued one social bond per year, demonstrating the bank’s social commitment: July 2020 (Social Covid-19), May 2021, January 2022, May 2023, September 2024, and November 2025. In total, the nominal amount placed in the market in social format reaches €7.25 billion.

Since the publication of its SDG-linked bond issuance framework in August 2019, CaixaBank has strengthened its position as one of Europe’s leading institutions in ESG bond issuance, with 16 own issuances: nine green bonds and seven social bonds, totalling €14.5 billion, £500 million, and CHF 300 million.