Updated on Tuesday, 7 September 2021 – 14:33
It is the first instrument of its kind that the Government takes to the markets. The demand has reached 60,000 million euros
The Vice President of Economic Affairs, Nadia Calvio.
The Spanish Public Treasury has started this Tuesday with the first issuance of green bonds to 20 years for a volume of about 5,000 million euros for which it has received a demand of 60,000 million euros, a sign of the high interest of investors.
The premium of this bond over the equivalent is 6 basis points and the issuing banks have been Barclays, BBVA, Credit Agricole CIB, Deutsche Bank, JP Morgan and Santander, according to data collected by Bloomberg.
Spain’s first sovereign green bond issuance program will be used to finance a “wide” variety of environmental programs. Specifically, the Executive has identified more than 13,600 million euros of eligible green spending to finance these projects.
Green bonds are debt securities that are used entirely in green projects that have a positive impact on the environment, among which the construction of renewable facilities, energy efficiency, clean transportation or proper waste management stand out.
Specifically, investments will be financed in the electric rail transport network, R + D + i projects for mitigation and adaptation to climate change, investments to improve water management or expenses for fire prevention and defense of native species, among others.
5.194 million in words
The Public Treasury has also placed this Tuesday 5,194.83 million euros in 6 and 12-month bills, within the expected midrange, and has done so by charging investors more for 12-month debt, according to data published by the Bank of Spain.
Despite having to pay more, investors continue to show interest in Spanish debt securities, since the joint demand for both references has exceeded 10,513.25 million euros, double what was finally placed on the markets.
Specifically, the body dependent on the Ministry of Economic Affairs has placed 923.99 million euros in six-month bills, compared to a demand of 3,245.47 million, and the marginal interest rate has been placed at -0.568%, less negative than the -0.589% above.
In 12-month bills it has placed 4,270.84 million, below the 7,267.78 million requested by investors, and has deepened in negative rates, with a marginal profitability of -0.563%, compared to -0.559% previously.
After the auction on Tuesday, the agency dependent on the Ministry of Economic Affairs and Digital Transformation will return to the debt markets the third week of September with two issuances of 3 and 9-month bills and bonds and obligations of the State.
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