Caixabank did the first Debt placement in dollars in the American market. The bank has placed $1.25 billion of 6-year priority non-preferred debt in a prime non-preferred bond format, with a fifth-year early repayment option.
The price was determined as 250 basis points (bps) over the US Treasury maturity (5-year US Treasury) reference, and was 25 basis points below the 275 basis points presented in the announcement due to the high demand experienced in the past weeks. It exceeded 3.4 billion dollars. Nearly 90 institutional investors participated in CaixaBank’s first issuance in dollars.
CaixaBank with this issue Taking the first step to become a regular issuer in the American marketIn order to diversify the investment base by creating a liquid issue in the secondary market, which serves as a reference point for future issuance exercises in the North American market.
This diversification It allows reaching a larger number of investors and thus lower financing costs and the capacity to appeal to more markets. In the case of dollar-denominated issuance, it provides access to a broad and stable investment base allowing the ability to issue in almost any market condition.
Jump to the American market
For an organization the size of CaixaBank, which has experienced massive growth in recent years to become Spain’s largest bank, a leap into the American market was highly recommended. with its balance sheet size and one of the largest retail banks in Europe approximately 29,000 million euros, based on business volume and market value.
CaixaBank continues to strengthen the position of ‘dancing’ liabilities with this issuance (reconfigurable), comfortably above the MREL requirement set for January 1, 2024, and reaffirms the bank’s commitment to continue to build a reconfigurable debt buffer that enhances the protection of senior creditors and depositors. The institutions responsible for the placement were Barclays, BNP Paribas, BofA Securities, CaixaBank, JP Morgan and Morgan Stanley.
That $1,250 million adds up to emissions. British Pound and Swiss Franc made in previous years. Specifically, in March 2022, CaixaBank issued a £500 million non-preferred senior loan; Issued CHF 200 million priority non-preferred debt in June 2021; and placed a £500m premium non-preferred green bond in May 2021. In addition, they exported three new yen worth more than 180 million euros in the Japanese market.
Source: Informacion
James Sean is a writer for “Social Bites”. He covers a wide range of topics, bringing the latest news and developments to his readers. With a keen sense of what’s important and a passion for writing, James delivers unique and insightful articles that keep his readers informed and engaged.