ICO returns to the dollar market with a $500 million issue
ICO returns to the dollar market with an issue for which demand easily exceeded expectations.
This bond achieved significant uptake in Asia and among central banks and official institutions.
The deal further diversifies ICO¿s investor base and allows it to access funding at very competitive rates equivalent to -0.098% in euros.
Instituto de Crédito Oficial (ICO) has launched a two-year, $500 million benchmark in the capital markets.
Goldman Sachs International, J.P. Morgan and Société Générale were the lead arrangers for the deal, which pays an annual coupon of 1.625%. The issue generated great interest among nearly 60 investors, with an order book of more than $750 million, making it possible to reduce the initial spread by 5 basis points to the mid-swap rate plus 65 basis points, equivalent to a fixed euro rate of -0.098% at time of issue.
Central banks and official institutions were the most significant investors, accounting for 51% of the uptake. The rest was placed with investment funds (33%), banks (10%) and insurance companies and pension funds (6%). Geographically, 85% of the operation was placed outside of Spain, notably in Asia (24%), the rest of Europe (18%) and the United States (16%).
This deal means that the Institute has completed 70% of its funding programme, which is estimated to reach around €4 billion in 2016.
ICO has once again underscored its commitment to diversifying its investor base using the capital markets and a range of currencies and terms.