CaixaBank places its second dual-tranche US dollar issue for an amount of 2 billion

• The bank has placed an 11-year 1 billion dollar bond and a 6-year 1 billion dollar bond, both in senior non-preferred format.
• Demand has exceeded 9.3 billion dollars. Upwards of 155 institutional investors participated in this dual US dollar issue by CaixaBank.

CaixaBank has completed its second dual-tranche placement of US dollar-denominated debt in the US market. The first issue was an 11-year senior non-preferred bond at 1 billion euros, with an early redemption option in the tenth year. The starting price was 220 basis points over the IPT (US Treasury benchmark). The high demand received (9.3 billion dollars for both tranches) has led to a price cut of 25 bps to 195 points over the IPT. The coupon has been set at 6.037%.

In parallel, CaixaBank placed another senior non-preferred bond with a shorter maturity: 6 years, with an early redemption option in the fifth year. Here, too, it placed 1 billion dollars, at a price of 160 basis points over the IPT, 27.5 points below the starting price (IPT+187.5 bps) on the back of the above-mentioned high demand. The coupon for this bond has been set at 5.673%.

This is CaixaBank’s second US dollar issue in the US market, following a 1,250-million-euro senior non-preferred bond placement in January and the dual senior non-preferred tranche of 2 billion dollars in September 2023. This enables the bank to further its goal of diversifying its investor base in the large and stable US market. Diversification enables it to reach a larger number of investors and, therefore, to achieve lower funding costs and a greater capacity to appeal to the market.

This issue enables CaixaBank to continue to strengthen its position in bail-inable liabilities, comfortably above the MREL requirement, and reasserts the bank’s commitment to continue building the bail-inable debt buffer in order to increase protection for senior creditors and depositors.

The banks in charge of the placement were Barclays, BofA Securities, CaixaBank, J.P. Morgan, Morgan Stanley, RBC and Wells Fargo.

CaixaBank is a recurring issuer, having made four public issues so far this year in euros, Swiss francs and US dollars, and in various asset classes (senior preferred, senior non-preferred and AT1) under its regular funding plan.