CaixaBank Launches €1,000M 5-Year Bond Issue

5 November 2015 – Expansión

The financial sector is issuing debt once again, with the launch of five-year mortgage bonds by the Catalan entity CaixaBank. Yesterday, the bank issued bonds amounting to €1,000 million after receiving demand for almost €1,900 million, which allowed it to reduce the price of the operation. Thus, the debt placement closed at 43 basis points above the mid-swap rate, the reference index for this kind of operation. The initial price ranged between 45 and 47 basis points.

“The strength of the demand has allowed us to narrow the initial spread by almost 4 basis points, placing the coupon at 0.625%”, said CaixaBank yesterday. 72% of the demand came from international investors, from 20 countries. The entity already issued another €1,000 million of mortgage bonds during the first quarter of the year; in that case the bonds had a ten-year term. CaixaBank, Crédit Agricole, Credit Suisse, HSBC and Deutsche Bank were the underwriting banks.

Original story: Expansión

Translation: Carmel Drake