The Basque Government has liked sustainable bonds, a type of upward issues both in banking and private companies and in public administrations. Suffice it to recall that the Community of Madrid has just placed 1,250 million in such an operation.

The Urkullu Executive launches a third issue with the experience that the previous two were a success. In 2018 the demand tripled the offer, until completing 1,583 million euros; and in 2019 it quadrupled, until 2,508.

The Basque Government announced yesterday that it is “finalizing the details” of the third issue of the Euskadi Sustainable Bond, which is expected to launch in March, this time with a value of 500 million to ten years.

The issue will be used to finance initiatives in the field of housing, employment, social policies and renewable energy

On March 17 a delegation will present the bond in London. It will be headed by the Minister of Finance, Pedro Azpiazu, “after checking the high interest that exists on the part of English investors”. With the aim of positioning the product in different markets, the team of the Department of Finance and Economy will be divided into two groups in order to carry out ‘road shows’ on March 16 and 17. Thus, meetings with investors will be arranged in Paris, London, Frankfurt, Munich, Dusseldorf and Cologne. This year, the Euskadi Sustainable Bond will be operated by BBVA, Banco Santander, CaixaBank, Natixis and Nomura, the latter in order to start working on the Asian market.

Social programs

The categories to be financed correspond in 83% to social programs and in 17% to environmental plans. The areas of action are affordable housing, access to services such as education and health, social policies, employment, renewable energy, sustainable transport, prevention and control of environmental pollution; and water management.

The Basque Government on Tuesday approved the indebtedness for 2020. Considering the operations at the end of 2019 and the amortizations in 2020, the maximum amount to be formalized in this year is 886 million euros. Basque public accounts are 1 billion below the allowed debt.


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