ICO successfully launches an issuance of 250 million pounds sterling
This issue represents ICO's successful return to the Sterling market after a 5 year absence.
It confirms the ongoing return to normality of financing conditions for Spanish issuers.
It shows an increase in demand for Spanish credit on the part of non-domestic investors.
Instituto de Crédito Oficial (ICO) completed its first operation in pounds sterling yesterday, to the amount of £250 million, which has meant a return to the Sterling market, after five years.
The issuance, with a maturity date of 15th December 2017, pays a coupon of 1.875%. Barclays and RBC Capital Markets were the banks in charge of managing this operation.
The success of this transaction, which was carried out mainly among European investors, shows the return to normality of financing conditions for Spanish issuers. In the geographical distribution of the issuance, the demand for UK account took more than half of the orderbook (62%). The rest of the issuance was distributed among investors from the rest of Europe ( 32%) and the United States (6%).
With regards to the type of investor, fund managers were the most active, purchasing 55% of the bonds, followed by banks (36%), insurance companies (5%) and central banks (4%).
This transaction, together with the issues launched in dollars and yen in the first half of the year, confirms the return of ICO to the financial markets in a currency other than the Euro. This deal, backed by the improvement in economic indicators and stability in the rating, shows that ICO continues to further expand its presence in international markets beyond their home market.