“la Caixa” Group issues 1,250 million euros in five-year Spanish mortgage covered bond. Demand for the issue was of 1,600 million euros, attracting interest from 100 investors around the world.
"la Caixa" today finalised the placement on capital markets of a five-year Spanish mortgage covered bond issue, worth a total of 1,250 million euros. This issue is part of the “la Caixa” 2011 financial plan and will serve to enhance the group’s excellent liquidity position, which as per 31 December 2010 had liquidity of 19,638 million euros, representing 6.9% of assets, one of the highest levels in the Spanish financial system.
Just like "la Caixa"'s two other bond issues this year, the issue was very well received by major national and international investors. The securities issued today attracted interest from a total of 100 investors around the world and generated demand of 1,600 million euros. Investors taking part in the placement included investment and pension funds, central banks, insurance companies and banks.
80% of total demand came from international buyers. In geographic terms, there was strong demand from France (19%), United Kingdom (15%), Germany and Austria (22%) and Asia (9%). Non-European investors (Asian and American) also played a significant role in the operation, demonstrating the market's excellent reception of "la Caixa"'s restructuring and the quality of the institution's balance sheet. Meanwhile, 20% of demand was generated by Spanish investors. This strong demand and the issue's success are evidence of "la Caixa"'s international recognition as a high-quality issuer. The issue price was set at 195 basis points over the midswap rate, the benchmark for such issues.
As with other "la Caixa" mortgage bond issues, Moody's and Standard & Poor's ratings agencies are expected to grant the issue 'Aaa' and 'AAA' long-term ratings, respectively the highest ratings for this type of issue. This is considered a benchmark issue, allowing the securities to be traded on leading global debt markets.
la Caixa
Date: 12.04.2011
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