ICO’s sustainable bond issues are part of its 2022-2027 Strategy to contribute to the growth of the sustainable bond market and ensure that funds are channelled to finance projects linked to social and environmental sustainability.
To date, it has launched seventeen sustainable bond issues (11 social and 6 green) for an amount of 8,552 million euros to finance projects that drive sustainable growth.
The promotion of sustainability is one of the strategic axes of the ICO Group’s strategy, with the objective that 40% of the volume of its new operations should be made under sustainability criteria in the period 2022-2027.
ICO’s role in the sustainable bond market
ICO has already launched 17 sustainable issues (11 social and 6 green), with a total amount issued of 8,552 million euros. This has made ICO one of the benchmark issuers in its category in the international sustainable bond market.
The Institute channels the funds it raises with these issues towards the Spanish business fabric through its direct financing programs, ICO Second-floor Facilities, and funds managed by AXIS, its venture capital subsidiary.
ICO routinely reports, in line with best market practice, on the impact generated by the funds used to finance projects that qualify for ICO’s Social Bond Issuance Framework or the Green Bond Issuance Framework.
In line with its commitment to transparency and best practice, ICO distributes a report to the investment community and publishes a breakdown and impact assessment on its website.
- Green Bonds
Last March, ICO launched its sixth green bond, which, together with the previous five, totals 3 billion euros to finance activities, investments and projects of Spanish companies that contribute to the ecological transition, in line with the objectives of the Spanish government’s National Recovery, Transformation and Resilience Plan.
This sixth green issue of 500 million euros was very well received by the markets, attracting more than 3.9 billion euros of demand. 75% of the operation has been placed among international accounts and 47% of the issue among ESG-qualified investors. This distribution demonstrates investors’ confidence in ICO’s role, both as an issuer of sustainable bonds and in the activity it carries out by financing projects that promote the green transition.
With the first five operations, the impact reports of which have already been published and are available on our website, ICO has so far supported 44 renewable energy and clean transport projects by Spanish companies, which will prevent the emission of more than 1,164,000 tonnes of CO2 per year.
- Social Bonds
ICO launched its activity in the sustainable bond market in 2015 with its inaugural 1 billion euro social bond issue, the first international issue bearing the ‘social’ name.
To date, ICO has already launched eleven social bond issues worth 5,552 million euros. Social bonds promote social and territorial cohesion and have a positive impact on employment.
Of the 11 social bonds issued, ICO has already published the impact reports of the first 10 bonds, available at the following link. With the social bonds reported to date, ICO has financed more than 76,700 projects by the self-employed, SMEs and companies, which have contributed to generating or maintaining more than 523,900 jobs.
In its role as one of the benchmark issuers in the European sustainable bond market, ICO holds the annual ICO Sustainable Bond Forum which has reached its eighth edition this year. This Forum aims to analyse the current state of the sustainable bond market, as well as the evolution, new opportunities and challenges facing the sector. This event held in Madrid brings together the main national and international players in sustainable finance: issuers, investors, agencies, banks and other industry players.
