Sustainable and Green Financing

ISIN ES00001010K8

The Community of Madrid has gone back to the capital markets in February 2023 to successfully place a new sustainable bond with a term of 10 years and for a volume of 1.000 million euros, being mandated to do so by BBVA, Banco Santander , Banco Sabadell, HSBC, Caixabank CIB and Crédit Agricole.

For the development of this financial operation, it has relied on the Sustainable Financing Framework, which has been qualified by the Sustainalytics Agency as solid, reliable and in harmony with the Green Bond Principles (GBP), the Social Bond Principles (PBS ) and the 2018 Sustainability Bond Guidelines published by the International Capital Market Association (ICMA), together with the Green Loan Principles (BPL) administered by the Loan Market Association (LMA), and aligned with the Sustainable Development Goals set by the UN.

With this new operation, the Community of Madrid further consolidates itself in the sustainable bond market as it is the seventh issuance of this type, with which it continues to advance in the construction of its sustainable curve and has been the Spanish region with the common regime that has reopened this market in 2022.

This issuance has been rated A/Baa1/A(low) /(S&P/Moody's/DBRS).

In the geographical distribution, it stands out that 83% of the bonds have been placed among foreign investors, Germany standing out with 29%, followed by France and Italy (10%) each and the United Kingdom, Portugal and Scandinavian countries with 8%.

By type of investor, the demand registered by banks stands out with 45% of the total volume of issuance, followed by insurers and pension funds with 25%, fund managers with 15% and official institutions with 13 %.

ISIN ES00001010L6

The Autonomous Community of Madrid has issued its fourth green bond in the capital market in June and its second public issue of 2023, with a term of 5 years and a volume of 600 million euros, being mandated to participate in the issue BBVA , CaixaBank, Credit Agricole CIB, ING and Santander. This transaction demonstrates the great commitment of the Community of Madrid with the green bond market and with the alignment with the green taxonomy of the European Union.

For the development of this financial operation, it has relied on the Sustainable Financing Framework, which has been qualified by the Sustainalytics Agency as solid, reliable and in harmony with the Green Bond Principles (GBP), the Social Bond Principles (PBS ) and the 2018 Sustainability Bond Guidelines published by the International Capital Market Association (ICMA), together with the Green Loan Principles (BPL) administered by the Loan Market Association (LMA), and aligned with the Sustainable Development Goals set by the UN.

 This issuance has been rated A/Baa1/A (all Stable) by S&P, Moody's, DBRS.

The transaction has had strong investor interest with a final book of around two billion euros from 78 different investors. International demand has represented 57% of the orders received, with the Nordic countries being the most representative international jurisdiction with 13%, followed by Germany (10%), England and Ireland with 7% and Portugal with 7%.

The book has had a high quality that can also be seen reflected in the awarding of the bonds by type of investor, with public and private banks being the investors with the highest allocation with 38%, followed by fund managers with 25%, insurers and pension funds with 16% and central banks and official institutions with 14%.

ISIN ES00001010I2

The Community of Madrid has gone to the capital markets again in March 2022 to successfully place a new sustainable bond with a term of 10 years and for a volume of 1.000 million euros, being mandated for it BBVA, Banco Santander , Banco Sabadell, HSBC, Caixabank and Crédit Agricole.

For the development of this financial operation, it has relied on the Sustainable Financing Framework, which has been qualified by the Sustainalytics Agency as solid, reliable and in harmony with the Green Bond Principles (GBP), the Social Bond Principles (PBS ) and the 2018 Sustainability Bond Guidelines published by the International Capital Market Association (ICMA), together with the Green Loan Principles (BPL) administered by the Loan Market Association (LMA), and aligned with the Sustainable Development Goals set by the UN.

With this new operation, the Community of Madrid consolidates itself even more in the sustainable bond market as it is the sixth issue of this type, with which it continues to advance in the construction of its sustainable curve and it has been the Spanish region that has reopened this market in 2022.

This issue has been rated Baa1 (st) / A- (st) / AL (st).

The demand was highly diversified geographically, placing 73% outside of Spain, and the high quality of the orders meant that 53% was represented by SRI accounts.

ISIN ES00001010J0

In October, the Autonomous Community of Madrid issued its third green bond on the capital market and its second public issue in 2022, with a term of 7 years and a volume of 500 million euros, being mandated to participate in the BBVA issue in its role as green structuring bank, CaixaBank, Credit Agricole CIB, ING and Santander. This transaction is the first issue of the Spanish public sector and one of the first in Europe fully aligned with the green taxonomy of the European Union.

For the development of this financial operation, it has relied on the Sustainable Financing Framework, which has been qualified by the Sustainalytics Agency as solid, reliable and in harmony with the Green Bond Principles (GBP), the Social Bond Principles (PBS ) and the 2018 Sustainability Bond Guidelines published by the International Capital Market Association (ICMA), together with the Green Loan Principles (BPL) administered by the Loan Market Association (LMA), and aligned with the Sustainable Development Goals set by the UN.

This issue has been classified with a rating of A-/Baa1/A-/BBB by S&P, Moody's, DBRS and Fitch respectively.

The transaction has received great support from the international investment community, representing 77% of the orders received, with France being the most representative international jurisdiction with 17%, followed by the United Kingdom and Ireland with 16%, Italy with 14%, Germany /Austria with 14%, BeNelux with 9% and other EU countries with 7%.

The quality of the book can also be seen in the allocation of the bonds by type of investor, with fund managers being the investors with the highest allocation with 49%, followed by banks with 46%, insurance companies and pension funds with 20%. % and finally “Hedge Funds” representing only 1% of the allocated volume.

In addition, 51% of the orders received came from investors who take sustainable criteria into account when making investment decisions.

ISIN ES00001010B7

The Community of Madrid has resorted to the capital markets again in March 2021 to successfully place a new sustainable bond with a 10-year term and a volume of 1.000 million euros, being mandated for this by BBVA, Banco Santander , Banco Sabadell, HSBC, Caixabank and JP MORGAN.

For the development of this financial operation, it has relied on the Sustainable Financing Framework, which has been qualified by the Sustainalytics Agency as solid, reliable and in harmony with the Green Bond Principles (GBP), the Social Bond Principles (PBS ) and the 2018 Sustainability Bond Guidelines published by the International Capital Market Association (ICMA), together with the Green Loan Principles (BPL) administered by the Loan Market Association (LMA), and aligned with the Sustainable Development Goals set by the UN.

With this new operation, the Community of Madrid is further consolidated in the sustainable bond market as it is the fifth issue of this type, thus continuing to advance in the construction of its sustainable curve. At the same time, the Community of Madrid achieved the lowest spread with respect to the Treasury, in an operation of this type carried out by it, thanks to a high-quality book that amounted to 3.500 million euros.

This issue has been rated Baa1 (st) / A- (st) / AL (st).

The demand was very diversified at a geographical level by placing 75% outside of Spain and by type of investor 69% was represented by real money accounts.

ISIN ES00001010G6

The Community of Madrid has resorted to the capital markets again in November 2021 to successfully place its second green bond with a term of 7 years and for a volume of 500 million euros, being mandated Banco Santander, Caixabank, Credit Agricole and Deutsche Bank.

With this issue, Madrid is positioned as the first Spanish region to have accessed the green bond market for the second time, a market in which entities with a greater global environmental commitment find financing from investors specialized in this field.

The issue has obtained a demand of over 1.000 million and has allowed obtaining a differential of 11 basis points over the Treasury bond, narrowing from the 14 basic points of initial guidance, obtaining a coupon of 0,16%. It has been the narrowest differential achieved to date in a public issue by the Community of Madrid at this time.

For the development of this financial operation, it has relied on the Sustainable Financing Framework, which has been qualified by the Sustainalytics Agency as solid, reliable and in harmony with the Green Bond Principles (GBP), the Social Bond Principles (PBS ) and the 2018 Sustainability Bond Guidelines published by the International Capital Market Association (ICMA), together with the Green Loan Principles (BPL) administered by the Loan Market Association (LMA), and aligned with the Sustainable Development Goals set by the UN.

This issue has been rated Baa1 (st) / A- / AL (st).

The demand was very diversified at the geographical level, placing 72% outside of Spain and by type of investor, 64% was represented by SRI accounts.

ISIN ES0000101933

The Community of Madrid has resorted to the capital markets again in February 2020 to successfully place a new sustainable bond with a 10-year term and for a volume of 1.250 million euros, being mandated for this by BBVA, Banco Santander , Banco Sabadell, HSBC, Bankia and Deutsche Bank.

For the development of this financial operation, it has relied on the Sustainable Financing Framework, which has been qualified by the Sustainalytics Agency as solid, reliable and in harmony with the Green Bond Principles (GBP), the Social Bond Principles (PBS ) and the 2018 Sustainability Bond Guidelines published by the International Capital Market Association (ICMA), together with the Green Loan Principles (BPL) administered by the Loan Market Association (LMA), and aligned with the Sustainable Development Goals set by the UN.

With this new operation, the Community of Madrid is further consolidated in the sustainable bond market as it is the fourth issue of this type, with which the Community of Madrid continues to advance in the construction of its sustainable curve. At the same time, the Community of Madrid achieved the lowest coupon in a 10-year syndicated issue in a Spanish region thanks to a high-quality book that amounted to 7.000 million euros.

This issue has been rated Baa1 (st) / A- / AL (st).

The demand was very diversified at a geographical level by placing 80% outside of Spain and by type of investor 59% was represented by real money accounts.

ISIN ES0000101966

The Community of Madrid has resorted to the capital markets again in April 2020 to successfully place its first green bond with a term of 7 years and for a volume of 700 million euros, being mandated for this by BBVA, ING, Credit Agricole and Banco Santander, acting as Caixabank co-leader.

It is the first operation of this type for a Spanish Region. The great interest generated in the markets with the first issuance of a green bond from a Spanish Autonomous Community, which exceeded 3.500 billion euros, allowed it to drop from the rate from a differential of 25 basis points as an initial guide to 19 basis points over the benchmark Treasury bond with which the transaction was closed. Becoming a successful issue in a difficult environment due to the COVID-19 crisis and further consolidating the Community of Madrid in the financial markets and building its benchmarks trading curve.

For the development of this financial operation, it has relied on the Sustainable Financing Framework, which has been qualified by the Sustainalytics Agency as solid, reliable and in harmony with the Green Bond Principles (GBP), the Social Bond Principles (PBS ) and the 2018 Sustainability Bond Guidelines published by the International Capital Market Association (ICMA), together with the Green Loan Principles (BPL) administered by the Loan Market Association (LMA), and aligned with the Sustainable Development Goals set by the UN.

This issue has been rated Baa1 (st) / A- / AL (st).

The demand was very diversified at a geographical level by placing 61% outside of Spain and by type of investor 58% was represented by real money accounts.

ISIN ES0000101909

The Community of Madrid successfully carried out its third sustainable public issuance in February 2019, the largest sustainable issuance carried out by a Spanish issuer, amounting to 1.250 million euros over 10 years, being mandated for this by BBVA, Banco Santander, Banco Sabadell, ING and HSBC.

For the development of this financial operation, a new Sustainable Financing Framework has been prepared, which replaces the previous Sustainable Bonds Framework, and which has been qualified by the Sustainalytics Agency as solid, reliable and in harmony with the Green Bonds Principles ( GBP), the Social Bonus Principles (PBS) and the 2018 Sustainability Bonus Guidelines published by the International Capital Market Association (ICMA), together with the Green Loan Principles (BPL) administered by the Loan Market Association (LMA), and is aligned with the Sustainable Development Goals set by the UN.

This issue has been rated with a rating of Baa1 (st) / BBB + (pos) / BBB (st) / AL (st).

The demand was very diversified geographically and by type of investor the 63% was represented by real money accounts.

LOANS

In 2019, the Community of Madrid has begun the formalization of bilateral loans, the amount of which will be allocated to environmental and social projects, as well as the provision of services in these areas, that meet the eligibility criteria defined in the new Sustainable Financing Framework.

ISIN ES0000101875 

The Community of Madrid has successfully issued 1.000 million euros in February 2018, with a maturity of 10 years, being the first sustainable benchmark reference of the year of an Autonomous Community. BBVA, Banco Santander, ING, Barclays Bank PLC, and HSBC were mandated for the operation.

This issue has been rated with a rating of Baa2 (st) / BBB + (st) / BBB (st).

The demand was very diversified geographically and by type of investor the 70% was represented by real money accounts.

ISIN ES0000101891

The Community of Madrid has successfully issued 150 million euros in October of 2018, with an expiration of 40 years increasing the average life of its portfolio. Has had Banco Sabadell as a placement entity.

The amount of this financial operation will be allocated to environmental and social projects, as well as to the provision of services in these areas, which meet the eligibility criteria defined in the Sustainability Bond Framework developed by the Community of Madrid.

ISIN ES0000101842

Comunidad de Madrid has launched the first Sustainable Benchmark Bond of the year issued by a public administration in Spain. 

For that purpose, it has mandated Barclays, BBVA, Crédit Agricole CIB, ING and Natixis as Joint Bookrunners. The bond has a 5-year maturity and has been rated with Baa2/ BBB + / BBB ratio (Moody's / S & P / Fitch). Strong demand has made it possible to narrow the 29point spread to Treasury + 0,747 (XNUMX%).  

ISIN ES0000101750

The Regional Government of Madrid was the first Spanish Public Administration that resorted to the bond market to specifically finance social projects.

The first Social Bond of the Region of Madrid was issued in August 2016. The placement of 48 million euros for the next XNUMX years will be aimed at financing one portion of the Guaranteed Minimum Income.