ICO launches a €1 billion bond issue

ICO launches a €1 billion bond issue

Instituto de Crédito Oficial (Baa2/BBB+/BBB+/AL) has launched its third benchmark bond issue of 2017 for the sum of €1 billion.

The transaction, managed by BBVA, Santander, Société Générale and Unicredit, pays a coupon of 0.25% and has a term of five years.

Over demand registered in the order book, which eventually came to more than €1.5 billion, has meant that the transaction has finally been closed at €1 billion with a spread of 0.08% above the Spanish treasury reference for the same term.

The strong uptake of the issue has allowed ICO to continue to diversify its investor base both in terms of investor type and geographic location. In terms of distribution by country, the interest shown by European investors is worth particular note, especially those from Germany, who have acquired 29% of the transaction and those from Italy, accounting for 11%. Furthermore, the role of Asian accounts has been important, which represent 12% of the bonds.

In terms of distribution by investor type, the involvement of banks has been particularly noteworthy, who have purchased 37% of the issue, followed by fund managers (34%), central banks (18%) and insurers and pension funds (11%).