ICO issues its seventh green bond for 500 million euros to finance projects with a positive environmental impact

20 May 2025

  • ICO closes this issue with a spread of 5 basis points over the Treasury benchmark, the narrowest in its history on a public issue
  • More than 70% of the transaction has been placed with ESG investors and international accounts, contributing to ICO's positioning as a benchmark issuer of sustainable bonds
  • The operation brings the total volume issued by ICO in green bonds to 3.5 billion euros. With the first six green issues, Spanish companies' projects have been financed, generating savings of more than 1,250,822 tonnes of CO2 per year

Spain's Official Credit Institute (ICO - Instituto de Crédito Oficial) has launched its seventh green bond on the market, for an amount of 500 million euros over a seven-year term. With this operation, ICO brings to 3.5 billion the volume raised through green bond transactions and maintains its position as a benchmark issuer in the sustainable debt markets. 

The transaction has been extremely well received by investors, with demand in excess of 2.6 billion euros. In the end, the order book closed with a demand of approximately 1.7 billion euros, more than three times the volume issued. 

High demand from ESG and international investors

The high demand generated has allowed the spread over the Treasury benchmark at the same maturity, which was initially set at 10 basis points, to be adjusted to a spread of 5 basis points. In doing so, ICO has achieved the narrowest spread in its history on a public issue. 

The quality of the order book is reflected in the participation of international accounts, making up nearly 70% of the issue's distribution.  It should also be noted that 75% of the issue has been placed with ESG-qualified investors. 

This distribution once again demonstrates investors' confidence in ICO's role both as an issuer of sustainable bonds and its contribution to financing projects that drive the green transition.

The banks trading in this green issue were BBVA, BNP Paribas, Crédit Agricole (CIB), Deutsche Bank and Santander. The transaction pays a coupon of 2.8%.

In terms of geographic distribution, the investment share from France, Germany and Austria, which notably acquired 36% of the issue in total. The presence of Asian accounts is also significant, accounting for 10% of the volume issued. 

As regards the type of investor, it is worth pointing out the role of fund managers, which have acquired 41% of the total, followed by banks (21%), and insurance companies and pension funds (19%). As for central banks and official institutions, they bought up 14% and fund managers 5%.

ICO: a major issuer of sustainable bonds

The resources raised with this bond will be used to finance projects that empower the ecological transition and the development of sustainable finance, in line with the objectives of the Spanish Government's Recovery, Transformation and Resilience Plan.

With the issuance of the first six green bonds, for which information on fund allocation and impact has already been published, ICO has promoted 53 renewable energy and clean transport projects by Spanish companies, which have mobilised an investment of approximately 22.3 billion euros and will prevent the emission of more than 1,250,822 tonnes of CO2 per year.

ICO is a benchmark in the European sustainable bond market, with 18 issues (11 social and 7 green) amounting to 9.052 billion euros, which is channelled towards projects of Spanish companies to promote sustainable growth.