Kutxabank has issued a €500 million Senior Preferred Green Bond with a six-year maturity and a call option after five years. The bond was priced at 73 basis points over the mid-swap rate, a spread that tightened from the initial price guidance due to strong investor demand. The annual coupon was set at 3.50%.
The transaction attracted significant investor interest, with demand exceeding €1.3 billion and an oversubscription ratio of 2.6 times the allocated amount. The order book included nearly 90 institutional investors.
The bond is expected to be rated A3 / A / A by Moody’s, Fitch, and DBRS, respectively. The proceeds will be used to finance eligible green projects under Kutxabank’s Sustainable Finance Framework, which is aligned with the ICMA Green Bond Principles.
In this transaction, Kutxabank Investment acted as Joint Lead Manager alongside Barclays, Citi, Crédit Agricole CIB, Nomura, and Santander, playing an active role in the distribution of the issuance among the investor base. This transaction further strengthens Kutxabank Investment’s track record in the debt capital markets and reinforces its position as a leading institution in the execution of sustainable bond issuances.
Purpose of the Issuance
Through this transaction, Kutxabank continues to advance its strategy of diversifying funding sources and broadening its investor base, while further strengthening its liquidity position.
Issuer Overview
Kutxabank is the parent company of the Kutxabank Group, which was established in 2012 following the merger of BBK, Kutxa, and Caja Vital, the three former Basque savings banks. The Group has a strong social commitment and a firm focus on sustainability, integrating ESG (Environmental, Social, and Governance) criteria into its business model.
As of year-end 2025, the Kutxabank Group reported a record net profit of €641.3 million, representing a 19.7% increase compared to the previous year. This performance was driven by strong commercial momentum and the solid execution of its key strategic growth and diversification initiatives. Core revenues reached €1,886.2 million, while total business volume amounted to €145.75 billion (+8.6%). The Group is supported by credit ratings of A3 (Moody’s), A (Fitch), and A (DBRS), all with stable outlooks.
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