Investor Presentaiton
Region of Madrid Inaugural Green Bond
Final Terms and Conditions
Issue Ratings
Baa1/A-/BBBu/AL (Sta/Pos/Sta/Pos)
Moody's/S&P/Fitch/DBRS
Regs, Bearer Dematerialised (No sales into
Canada)
Senior, Unsecured
Format
Ranking
Size
EUR 700MM
Maturity
30th July 2027
Settlement
Coupon
Reoffer Price
Reoffer Spread
8 May 2020 (T+7)
0.827% Fixed, Annual, Act/Act - Short first
100.001% (Yield 0.827%)
SPGB (mid yield 0.637%) +19bps area
Ref SPGB 0.8 07/30/27 HR 98%
Benchmark
Listing
AIAF
Min Denoms
Bookrunners
ISIN
CB
5%
INS & PF
18%
€1k+ €1k
BBVA (B&D), CACIB, ING, Santander
ES0000101966
Investor Type
BENELUX
3%
REST
1%
GBR
5%
ITA
FUND
40%
SWI
3%
7%
FRA
7%
NOR
7%
Geography
Transaction Highlights
.
On Tuesday April 28th 2020, the Autonomous Community of
Madrid successfully launched their first Green bond (EUR
700MM due 30th July 2027), following 5 days of OoO calls with
over 20 European ESG investors
• One day before, on April 27th mid-day the mandate was
announced together with IPTS of SPGB +28 bps. By the EoD,
lols were over 1.8bn from 119 accounts.
Given this extraordinary reception from investors, books opened
the next day at 9:00 am with a guidance of SPGB +25 bps area.
Just 1 hour from book opening (10:00 am) an update was
released, indicating books over €3 Bn (excl. JLMs) and revising
Guidance to SPGB +22 bps area. At 11.10 CET a second update
was released, setting the spread at SPGB +19 bps, with Books
exceeding € 3.5 Bn (excl JLMs) and going subject at 11.35 CET
• At 12.15 pm Final Terms were announced, setting the size at
€700 Mill. The landing Pricing level of SPG +19 bps shows a
tightening of 6 bps vs. Guidance (-11 bps vs IPTS) and is Flat
vs the Issuer Secondary curve (No NIP)
•
DEU
41%
•
The total demand for the deal exceeded 3.5bn from 172
investors. Comunidad de Madrid managed to print a very
successful deal (4.1x oversubscription) in a very challenging
environment due to the COVID 19 crisis at Zero New Issue
Premium, thanks to the high oversubscription facilitated by the
Green Bond category
The excellent quality of the book was reflected in the strong
demand from dedicated ESG investors (64%), international
accounts (61%), and real money investors (58% from Investment
& Pension Funds and Insurance Companies).
BANKS
37%
ESP
26%
63
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