ICO consolidates its leadership in the sustainable bond market as part of its corporate strategy
- The 5th edition of the ICO Sustainable Bonds Forum was attended by international investors and issuers who debated and analysed the present and future of green and social bond markets.
- ICO has strengthened its position in international sustainable bond markets with the launch of its first green bond issue last April and the fifth social bond operation last November.
- The amount of sustainable bond issues made by ICO since 2015 amounts to 3,050 million euros. Approximately one third of the total volume has been issued in the last twelve months.
- The financing granted by ICO to projects and companies thanks to these issues, makes it possible to multiply by between three and four times the mobilisation of resources, in many cases with co-financing from the EIB and other national, international and multilateral entities.
The Chairman of the Instituto de Crédito Oficial (ICO), José Carlos García de Quevedo, and the Secretary General of the Treasury and International Finance, Carlos San Basilio, today inaugurated the ICO Sustainable Bonds Forum.
This forum, organised by ICO in collaboration with BBVA, Banco Santander Crédit Agricole, ING and HSBC, brought together in Madrid for the fifth consecutive year issuers, investors, banks, agencies and other participants in the sector to analyse the current situation and new opportunities in the green bonds and social bonds market.
The funds raised through these types of issues are used to finance operations that generate a positive social or environmental impact. ICO financing makes it possible to multiply the mobilisation of resources by between three and four times, in many cases with co-financing from the EIB and other national, international and multilateral bodies.
José Carlos García de Quevedo and Carlos San Basilio explained the public sector's support for the development of sustainable finance, a growing market that has become an efficient financing alternative. Over the past year, the sustainable bond market has experienced strong growth, reaching USD 247 trillion issued in 2018, representing 26% growth over 2017.
ICO's role in the sustainable bond market
ICO aligns its corporate strategy with the fulfilment of the Sustainable Development Objectives of the 2030 Agenda. Within this framework, the ICO's commitment to the development of sustainable bond issues, a market in which the public bank was a pioneer, is particularly relevant. ICO is currently one of the benchmark issuers in this sector.
To date, the Institute has launched this type of operations for a total amount of 3,050 million euros; approximately one third of the volume has been issued in the last twelve months:
- Green bonds:
Recently, ICO has launched its first green bond issue amounting to 500 million euros to finance activities, investments and projects of Spanish companies that contribute to environmental protection and the fight against climate change. ICO promotes sustainability and consolidation of the green bond market as a growing and efficient financing alternative.
The programme incorporates the measurement of the impact of eligible projects and their contribution to the United Nations Sustainable Development Goals, all within the framework of the "Green Bond Principles" issued by ICMA.
- Social bonds:
ICO was a pioneer in the social bond market. Since 2015 it has carried out five transactions amounting to more than 2,550 million euros to finance projects by the self-employed and SMEs located in Autonomous Communities with a GDP per capita lower than the Spanish average. With the volume raised in the first four issues (2,050 million euros) 46,500 projects were financed.
With these two modalities of bonds, ICO is contributing to financing social and environmental projects of companies, with the aim of reducing inequalities and achieving a fair and inclusive growth that facilitates the sustainability of economic growth in Spain.