The autonomous community of the Canary Islands has successfully completed the issuance of its first benchmark sustainable bond for a value of 500 million euros with a ten-year maturity. The autonomous community received bids for 2.1 billion euros, a figure that quadruples the issued offer.
The operation marks the return of the Government of the Canary Islands to the capital markets in benchmark format after a five-year absence. The issuance received robust support from more than 70 investors, with significant international participation. In this regard, international demand accounted for 66% of the allocated volume, led by the United Kingdom and Ireland (20%), Germany (16%), the Nordic countries (8%), and Italy (8%), compared to 34% of national demand.
By type of investor, the weight of investment funds stands out, leading with 47%, followed by banks and private banking (40%), central banks and official institutions (6%), and insurers and pension funds (5%).
For the Minister of Finance and Relations with the European Union, Matilde Asián, this good market response demonstrates that “international and national investors trust in the solvency of the Canary Islands and its economic and financial policy.”
Sustainable bonds are debt instruments (fixed income) whose objective is to finance or refinance projects that simultaneously generate both environmental and social benefits. “With the issuance of its first sustainable bond, the autonomous community manages to diversify funding sources beyond traditional credit,” added the minister.
According to the ministry, "the success of the issuance responds to the financing strategy set by the ministry and the General Directorate of Treasury and Financial Policy, which seeks long-term cost optimization and risk management. Furthermore, this operation improves the transparency and solvency image of the region, by once again having a presence and impact in the global financial world."
The operation is part of the recently published Sustainable Financing Framework of the Autonomous Community of the Canary Islands. The framework aims to integrate sustainability into the financing strategy, support the Canary Agenda 2030, attract new investors, and contribute to the market for sustainable finance. The framework is fully aligned with the principles and guidelines of the International Capital Market Association (ICMA) and the EU Taxonomy. The external assessment of the framework by Moody´s was “Very Good”.
The transaction, with an issue date of June 16, 2026, demonstrated strong market appetite. Initial Price Indications (IPs) started at SPGB +20 basis points. Despite market competition, demand grew steadily, allowing the spread to be adjusted. Demand exceeded 1.4 billion euros in the morning, and 1.6 billion euros at midday, finally closing the books with a total demand of more than 2.1 billion euros. This allowed the spread to be set at SPGB +15 basis points, representing a 5 basis point cut from the initial indications.
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