The Madrid regional government has registered a new benchmark sustainable bond issue with AIAF, the fixed income market of the Spanish stock market operator BME, for €1.25bn.
The bond, whose final redemption date is 30 of April 2019, has an individual value of €1,000 and a fixed annual interest rate of 1.571%.
This is the fifth sustainable bond issue registered with AIAF by this regional government, following those launched started in 2016.
The Spanish issuers rank an outstanding sixth position worldwide"
Gonzalo Gómez Retuerto, managing director of BME Fixed Income, said: "Green and social bonds have become an asset class in its own right and are highly demanded by international investors. The total volume issued in 2018 of this type of asset exceeded $167bn. The Spanish issuers rank an outstanding sixth position worldwide".
BME actively participates in the development of this market through the UN's Sustainable Stocks Exchanges initiative, of which it is a member together with other institutions and global exchanges.
The Madrid regional government was the first Spanish public administration to launch an issue in the bond market to specifically finance social projects, demonstrating the region's serious commitment about those issues that are not strictly financial, such as climate change and social development, said BME.