The Junta de Andalucía has issued sustainable bonds worth 1,000 million euros to 10 years, consolidating its responsible and sustainable financing strategy. The issuance, the first public debt of 2025, has aroused an unprecedented interest, with more than 120 institutional investors from 12 different countries, reaching a total demand for 4.1 billion euros, the largest registered in the history of the community.
The Minister of Economy, Finance and European Funds, Carolina SpainHe stressed that the success of the operation responds to the credibility and trust that Andalusia projects in the financial markets. “The departure to the markets and the interest that the issuance has aroused is mainly due to the credibility and the trust offered by Andalusia to investors“He said.
The broadcast, made under the sustainable finance framework approved in 2021, has raised the total volume of Sustainable bonds issued by Andalusia at 4,850 million euros. The operation, with a nominal interest rate of 3.30%, has achieved a differential of 19 basic points on the Treasury, the lowest obtained by the community since its return to financial markets in 2018.
The interest of investors has been widely diversified, with an outstanding participation of entities of United Kingdom, Germany, Italy, Portugal, Austria, Switzerland, France, Luxembourg, Norway, Belgium and the Middle East. This response has allowed Andalusia to reduce its dependence on state financing and strengthen its autonomy in markets.
Financial solidity
The success of the placement has been supported by the Improvement in community credit qualificationrecognized by the main international agencies. Standard & Poor’s raised in 2023 the note from Andalusia to Single A, the highest since 2012, and Moody’s has improved the perspective of stable to positive in 2024. This evolution places the community in a strength position to continue capturing investment in favorable conditions.
Spain has stressed that “Andalusia can go to the markets because it has healthy accounts, which shows that We have financial solvency and that the debt forgiveness posed by the Government is not a priority. We are a managing community that is creating confidence in the markets, which is responsible and, most importantly, which is respected in financial markets. “
The counselor has insisted that the community maintains responsible and disciplined management of their public finances, which has allowed its debt below the regional average. According to the latest data from the Bank of Spain, The debt per inhabitant in Andalusia is at 4,618 euroscompared to 6,878 euros on average of the set of autonomous communities or the 11,085 euros in Catalonia. In terms of percentage on GDP, the Andalusian ratio is 19%, compared to 21.3% of the regional average and 40.4% of the Valencian Community.
Sustainable Financing Strategy
The 10 -year broadcast will allow to expand the half -life of the Andalusian debt, a key factor to guarantee long -term financial stability. Andalusia has achieved reverse the reduction of the half -life of your debt portfoliowhich had been shortened after adhesion in 2012 to state financing mechanisms.
Since 2018, the community has led The return to financial marketsconsolidating a strategy that has allowed it to be financed in more favorable conditions. “Andalusia what you need is a new financing system that is fair and stops undoing the Andalusians,” Spain concluded.
Andalusia’s commitment to a rigorous management of his public finances has been key to strengthening his position in the markets. In fact, the Board budget for 2025 has been designed with a BUDGET BALANCE PROVISIONavoiding an increase in debt and reinforcing the confidence of investors in the financial solidity of the community.
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