Spain's 20-Year Green Bond Draws Over €82 Billion in Orders

Spain's syndicated 20-year green bond has drawn overwhelming investor interest, with orders surpassing €82 billion on Tuesday. The strong demand allowed the Treasury to tighten pricing on the €4 billion issue, setting the final spread at 7 basis points over Spain's 3.45% July 2043 bond, down from an initial guidance of around 10 basis points.

The Treasury highlighted that the order book saw significant participation from central banks, international organisations, insurers, and pension funds. Officials described the response as a clear demonstration of investor confidence in the Spanish economy. Demand had already exceeded €55 billion shortly after books opened, underscoring sustained appetite for Spanish sovereign debt.

The bond, maturing in July 2047, is issued under Spain's green bond programme, which channels proceeds into environmentally sustainable expenditure. Order books were scheduled to close at 1000 London time (1100 CET), with final pricing expected later on Tuesday.

Barclays, BBVA, Credit Agricole CIB, J.P. Morgan, Morgan Stanley, and Santander are serving as lead managers on the transaction.