ICO consolidates its position as a leading issuer in the Social Bonds Market
Instituto de Crédito Oficial has issued €1.5 billion in the Social Bonds market to date. The purpose of this type of bond is to finance SMEs in regions with a per capita GDP below the national average, in order to encourage job creation and retention.
In April ICO launched its second social bond issue in the market, totalling €500 million. As was the case in ICO's first issue, investors demonstrated high levels of interest for this product and the order book exceeded €2 billion. The issue, with a two-year maturity, was led by BBVA, Crédit Agricole and HSBC.
Commitment to investors
To certify that the funds raised via these issues are used to finance companies that meet the eligibility criteria, ICO has agreed to publish reports that state how the investment is being used. These reports, which are produced one year after the issue is completed, are reviewed by a ratings agency to ensure that the loans comply with the established criteria.
The report on the first social bond issue, which raised €1 billion in January 2015, was published in February 2016.
Second ICO Sustainable Bonds Forum
As a major player in the market and in line with its Corporate Social Responsibility policy, ICO encourages activities and discussions that promote and raise awareness of the social bond market among investors.
On 29 June, the Institute will host the 2nd ICO Sustainable Bonds Forum, which will bring together a large number of experts in Madrid.
The purpose of the forum is to analyse the market for green and social bonds with issuers, investors, agencies and other market participants. The theme will focus on new opportunities and the challenges faced by sustainability bonds market.