The sustainable issuance calendar was launched again this Wednesday, September 1, with two placements by financial institutions, BBVA and Abanca. The first issued with great success – the demand multiplied the offer by almost 5 – a 2-year social bond of 1,000 million euros (senior preferential debt at floating rate). For its part, the Galician entity put a 500 million green bond on the market. See more news about sustainability in the Economist Sustainable Investment and ESG.
With these two operations, Spanish entities have already asked the market so far this year for 6,578 million euros in green, social and sustainable bonds (the latter combine characteristics of the previous two). That figure represents 50.8% of the amount issued by companies in this country, which amounts to 12,952 million.
With this operation, BBVA puts its first ESG bond on the market of 2021, which is the fifth in its history. “The response of the market far exceeds any expectation,” they said yesterday from BBVA. Demand reached 4,750 million euros , which allowed the price to be reduced to 15 basis points above the 3-month Euribor, 20 basis points below the initial price indication. According to sources from the entity explained to elEconomista , the operation attracted more than 100 investors, 85% of which are focused on ESG investment. 65% of them are French, and 80% are mutual funds.
The entity ?? that has the commitment to carry out at least one operation of this type every year ?? It has already carried out senior non-preferred green bond issues in 2018 and 2019, while in 2020 it launched a social bond and a green CoCo (contingent convertible bond) . The bond placed yesterday will finance projects related to access to essential services (such as health and education) and basic infrastructures (such as telecommunications or transportation).
After a more prolific 2020 in social emissions due to the needs uncovered by the Covid-19 pandemic, in 2021 green placements predominate. BBVA’s is the first social issue of the year. Sacyr already placed 174 million in an operation of this type in April, but in Colombia.
Among the companies and financial entities that have issued responsible debt in 2021, CaixaBank has been the dominant entity: it has gone to the market on 4 occasions to place responsible debt for almost 3,600 million , and currently accounts for about 28% of the total placed by companies from this country.