The authorization made effective after the Council of Ministers on May 27, will allow investors to have a new issue of public debt from the autonomous community worth 100 million euros, suitable for materializing the allocations charged to the Reserve for Investments in the Canary Islands (RIC). The operation is expected to take place in the last quarter of the year.
In February 2024, the Council of Ministers authorized the Canary Islands to formalize long-term debt operations for a maximum amount of 707,256,739 euros until December 31, 2025, which may be implemented through loans and/or bonds and obligations.
Within that amount, the Government of the Canary Islands already issued public debt last November suitable for materializing the allocations to the Reserve for Investments in the Canary Islands (RIC) worth 150 million euros. With this new issue, the department headed by Matilde Asián will have placed 250 million euros in the markets to facilitate access for entrepreneurs and small investors to this type of instrument, with the benefit they represent in terms of financial and fiscal profitability.
For Matilde Asián, the previous issue registered a success of applications and allowed a broad nominal distribution of the investment that she hopes will be repeated on this occasion.
In addition, the Minister wanted to remember that the issuance of RIC bonds implies "a lower financial cost in the indebtedness of the autonomous community, which is already very little indebted compared to the rest of the communities, and allows to allocate that saving of interests to other types of policies of a social nature".
In fact, as established by the authorization, the Government of the Canary Islands will allocate this debt issue to finance spending on projects that correspond to investments in infrastructure and equipment, or improvement and protection of the environment in the Canary Islands territory or rehabilitation of protected housing intended for lease in favor of people registered in the Public Registry of Applicants for Protected Housing in the Canary Islands, included in the General Budgets of the Autonomous Community of the Canary Islands for the year 2025.
This operation complies with the provisions of Law 19/1994, of July 6, amending the Economic and Fiscal Regime of the Canary Islands, regarding the destination of the issue to finance investments in infrastructure and equipment or improvement and protection of the environment in the Canary Islands territory with the limit of 50% of the allocations made in each year and other applicable regulations.
