Kutxabank raises €750M in first mortgage bond sale since 2015
What's the deal? KutxabankDealroom has a profile for this one. Try Dealroom → has issued €750 million in mortgage bonds with a seven-year fixed maturity, its second debt operation of the year. The placement drew €1,800 million in demand, mainly from international investors.
Why now? The Basque lender is raising debt to fund the expansion targets in its Benetan 2025-2027 strategic plan. It is the bank's first mortgage bond issuance since 2015.
Who bought in? Up to 60 investors took part, with international buyers accounting for 88% of the total. Germany led at 25%, followed by Benelux (21%), the UK and Ireland (20%), the Nordic countries (17%), France (3%), and Portugal (2%).
By the numbers: Strong demand let Kutxabank cut the price by 6 basis points, to 29 basis points over the initial 35. BBVADealroom has a profile for this one. Try Dealroom →, CommerzbankDealroom has a profile for this one. Try Dealroom →, HSBC Continental EuropeDealroom has a profile for this one. Try Dealroom →, JPMorganDealroom has a profile for this one. Try Dealroom →, Kutxabank InvestmentDealroom has a profile for this one. Try Dealroom →, and NatixisDealroom has a profile for this one. Try Dealroom → coordinated the operation.
The signal: The deal follows a €500 million green senior preferred bond in June, which was oversubscribed 2.6 times. Together, the two operations show Kutxabank tapping capital markets to bankroll growth as international appetite for its debt holds firm.
Image credit: udalgintzalantaldea
