ICO issues its eighth green bond for €500 million and strengthens its market strategy to finance environmental projects
13 mayo 2026
- Strong international backing, which accounted for 83% of the issue, together with ESG investors, reinforces ICO’s role as a green bond issuer and demonstrates confidence in the Spanish economy
- With this transaction, ICO reaches €4 billion in green debt and exceeds €10 billion in sustainable bond issuances
- ICO expands its Green Bond Framework with two new categories of eligible environmental projects and greater alignment with the Sustainable Development Goals and the European Union Taxonomy
The Instituto de Crédito Oficial (ICO) has launched its eighth green bond on the market, amounting to €500 million with a five-year maturity. Following this transaction, ICO reaches a total of €4 billion raised through green debt transactions and €10.05 billion in sustainable issuances – both green and social – consolidating its position as a benchmark issuer in the green and social bond markets.
The public transaction attracted strong investor demand, with orders exceeding €3.3 billion. The order book ultimately closed at over €3.25 billion, more than six times the issued volume.
Strong demand from ESG and international investors
The high level of demand enabled the spread over the equivalent Treasury benchmark to tighten from the initially indicated 9 basis points to 4 basis points — the narrowest spread achieved by ICO in a public issuance — resulting in more favourable financing conditions for green projects.
The quality of the order book is reflected in the strong participation of international accounts, which were allocated 83% of the issue. In addition, more than 52% of the transaction was placed with investors incorporating ESG criteria into their investment decisions, once again demonstrating investor confidence in the Spanish economy overall, and in ICO in particular as an issuer of sustainable bonds aimed at financing projects that support the green transition and sustainable growth.
The joint lead managers for this green issuance were BNP Paribas, Crédit Agricole (CIB), Citi, HSBC and Santander. The bond carries a coupon of 3.05%. In terms of geographical distribution, the transaction saw notable participation from Asia and the Middle East (28%), followed by Spain (17%) and the Benelux countries (13%). Other participating regions included Switzerland, the United Kingdom and France, among others.
Regarding investor type, central banks and official institutions accounted for 45% of the total allocation, followed by banks and asset managers, with 21% and 20% respectively. Insurance companies and pension funds took 12%, while hedge funds accounted for 2%.
ICO strengthens its green bond strategy with an updated framework
ICO has recently updated its Green Bond Framework in order to reinforce its commitment to environmental protection and the fight against climate change through the financing of projects with a positive environmental impact. Two new categories of eligible projects have been included in the framework: Circular Economy and Climate Change Adaptation.
Furthermore, the framework enhances transparency in aligning projects with the Sustainable Development Goals (SDGs), the EU Environmental Objectives and the EU Taxonomy.
ICO: a key issuer in the sustainable bond market
ICO is a leading player in the European sustainable bond market, with 20 issuances (12 social and 8 green) totalling €10.05 billion, channelled into projects undertaken by Spanish companies to promote sustainable growth and the green transition.
The proceeds from this green bond will be used to finance projects that foster the ecological transition and the development of sustainable finance. Through the first six green bond issuances, ICO has supported 53 renewable energy and clean transport projects by Spanish companies, mobilising an estimated €22.368 billion in investment and preventing the emission of more than 1,250,822 tonnes of CO₂ annually.