New sustainable issue: ICO bolsters its market position with a new issue of social bonds, amounting to 500 million euros

30 October 2025

  • International investors bought up 87% of the issue and demand soared to 2.2 billion euros
  • This is ICO's twelfth social bond issue, equivalent to a total volume of social bonds issued of 6.05 billion euros, and maintains ICO's position as a benchmark among European issuers in this market
  • To date, the resources raised by the ICO with these issues have contributed to financing more than 76,500 business projects that foster job creation and generate a positive social impact on Spanish SMEs, companies and the self-employed

Instituto de Crédito Oficial (ICO) (A/+/A/A/A3 from S&P/ Fitch/Scope/ Moody’s) has launched its twelfth issue of social bonds, amounting to 500 million euros, certifying the national development bank as the leading European issuer in the sustainable bond market.  

The transaction has generated a great deal of interest among investors, who have filed orders for up to 2.2 billion euros. This over-subscription has allowed the operation to close with a spread of 5 basis points over the Treasury benchmark at the same maturity, thus narrowing the starting price which had been set at a benchmark of 9 basis points. 

It is worth noting that 87% of the operation has been placed among international accounts, particularly from Asia, followed by Spain and other countries such as Switzerland, Belgium, the Netherlands, Luxembourg and the Scandinavian countries. 43% of the investors who took part in this transaction are investors who use ESG criteria in their investment decisions.

By type of investor, central banks and official institutions accounted for 57% of the issue, followed by fund managers, with 25% of the total issue volume. Insurers and banks each registered a 9% share.
 
The transaction, which matures on 30 April 2030, pays a 2.45% coupon. The banks leading the deal were Citi, Deutsche Bank, JP Morgan and Santander.

ICO Social Bonds

After today's operation, ICO’s volume issued in social bonds now stands at 6.05 billion euros. In this type of transactions, ICO undertakes with its investors to promote projects that generate a positive social impact in Spanish SMEs, companies and the self-employed.  To this end, it channels the funds it raises towards the business fabric through its public-private partnership financing programmes.

To date, ICO's social bond issues have helped to finance more than 76,500 business projects, which have helped to create or maintain more than 550,000 jobs, as well as the construction of social infrastructure such as hospitals and housing. The aim is to promote economic activities that contribute to the country’s growth and development and to an improved distribution of the national wealth.

The ICO's activity in the sustainable bond market is complemented by green bonds to raise funds to finance projects that boost the green transition. In total, it has already launched 19 sustainable operations (12 social and 7 green), with a total issued amount of 9.55 billion euros. 

In addition, ICO is a sponsor of the International Capital Market Association (ICMA) social bond benchmarks and is a member of the Advisory Council of the GBP and SBP Executive Committee.