Bankinter closes €750M senior non-preferred green bond, 3.2x oversubscribed
What's the deal? Spanish bank BankinterDealroom has a profile for this one. Try Dealroom → has closed a €750M senior non-preferred green bond issue, its second of this kind. The eight-year bonds, with an optional early redemption in year seven, drew €2.4B in demand from more than 110 institutional investors — 3.2 times the amount offered.
The final pricing came in at midswap plus 95 basis points, well below the initial guidance of midswap plus 125–130 basis points. International investors accounted for 95% of subscriptions, with the coupon to be paid annually each June 2.
Proceeds will finance or refinance renewable energy project finance, green buildings, pollution prevention, energy efficiency, sustainable mobility, and circular economy projects, as defined in Bankinter's Green Bond Framework.
BarclaysDealroom has a profile for this one. Try Dealroom →, Crédit Agricole CIB, Deutsche BankDealroom has a profile for this one. Try Dealroom →, and NatixisDealroom has a profile for this one. Try Dealroom → acted as joint bookrunners alongside Bankinter. Banco SabadellDealroom has a profile for this one. Try Dealroom → and HelabaDealroom has a profile for this one. Try Dealroom → co-managed the deal.
Why now? The issuance fits within Bankinter's 2024–2026 strategic plan, dubbed "ADN," which places sustainable finance at its core. Investor appetite for green-labelled debt instruments remains strong, allowing the bank to tighten pricing significantly during the bookbuilding process.
What could go wrong? Senior non-preferred bonds sit lower in the capital structure than standard senior debt, meaning holders face greater risk in a resolution scenario. If credit conditions deteriorate or green bond standards tighten, future issuances could prove harder to price as favourably.
The signal: Bankinter, a mature Spanish banking group that has also operated a venture capital programme since 2013, is leveraging its green bond framework to tap deep pools of international institutional capital — 95% of subscribers were non-domestic. The 3.2x oversubscription and 30-basis-point pricing compression suggest that, even as credit markets tighten elsewhere, ESG-labelled instruments from established mid-cap lenders continue to command a scarcity premium across Europe.
Read more: bolsamania.com
