Highlights

• €1 billion Tier 2 social subordinated debt placed with strong investor interest.
• Funds channelled into poverty reduction, gender equality, financial inclusion, health, education, and social housing.
• CaixaBank reaches seven social bonds and nine green bonds, standing among Europe’s diligent ESG bond issuers.

CaixaBank, the leading financial group in retail banking in Spain, completed a €1 billion Tier 2 social subordinated debt issuance, which is its seventh public debt transaction in 2025.

The instrument is classified as a social bond, linked to financing social projects under the bank’s sustainability strategy.

The placement reached a final order book of over €1.9 billion, which allowed pricing at 145 bps over midswap, lower than the initial range. The coupon stands at 3.875%, with a 12.5-year maturity and a call option at year 7.5.

Read More: Green Bonds Explained: Definition, Types, Benefits & Risks

At the same time, the financial group holds a CET1 ratio of 12.4% and a total capital ratio of 16.9%, levels that exceed SREP requirements.

Credit rating agencies such as Moody’s, S&P, Fitch, and DBRS recognise the instrument within investment-grade territory. The pricing outcome stands as the tightest spread recorded for a similar Tier 2 maturity from a Southern European institution since 2021.

The bank has already issued nine green bonds and seven social bonds, thereby accumulating volumes of €14.5 billion, £500 million, and CHF 300 million. The previous ESG issuance happened in June 2025, involving a €1.25 billion green senior preferred bond.

Also Read: What Are ESG Bonds? Benefits & Future of Green Investing

Funds from this new social subordinated debt are channelled into economic and social development in disadvantaged areas of Spain. The bank identifies priority areas such as poverty reduction, gender equality, financial inclusion, access to health services, access to education, and social housing.

CaixaBank lists an eligible social portfolio of more than €9.7 billion, including €4.59 billion for sustainable employment generation, €2.26 billion for financial inclusion initiatives, €1.22 billion for health-related services, and €977 million for gender equality programmes.

Since 2019, CaixaBank has continued to issue one social bond each year, beginning with the first social bond linked to the UN Sustainable Development Goals. The sequence spans issuances in 2020, 2021, 2022, 2023, 2024, and now 2025, and this has brought the total issued in social format to €7.25 billion.

See Also: Blue Bonds: Catalysing Investment in Marine Conservation

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Source: CaixaBank