SANTA CRUZ DE TENERIFE 25 Oct. (EUROPA PRESS) –
The Deputy President of the Government of the Canary Islands, Manuel Domínguez, along with the Minister of Finance and Relations with the European Union, Matilde Asián, revealed on Friday a new public debt issuance for the Autonomous Community, capped at 150 million euros, aimed at realising the contributions drawn from the Canary Islands Investment Reserve (RIC).
This issuance will take the form of five-year bonds with a fixed annual nominal interest rate of 0.5 per cent.
The Council of Ministers sanctioned the agreement on February 27, 2024, which permits the autonomous community to undertake long-term debt transactions up to a total of 718.4 million euros.
Subsequently, the Council of Ministers agreed on July 9, 2024, to allow the issuance of public debt for the purpose of funding allocations to the Canary Islands Investment Reserve (RIC) for a maximum of 150 million euros.
According to the authorisation, the Government of the Canary Islands intends to utilise the funds from this issuance to finance investments in infrastructure and equipment, as well as to enhance and protect the environment within the Canary Islands, as stated in an official note from the Executive.
In regard to the approved amount, the counsellor emphasised that out of the new financing designated for the 2024 fiscal year, 21% is now accessible for investment in the RIC, bringing resultant benefits for Canarian businessmen in terms of financial and fiscal returns.
“Moreover, this issuance of RIC bonds implies that the debt of the Canary Islands incurs a lower financial cost for the autonomous community, allowing us to allocate these interest savings to various social policies,” Matilde Asián remarked.
The last issuance eligible for the RIC occurred in 2014, amounting to 50 million euros.
The window for the public offer to subscribe for securities will open on Monday, November 4 at 8:00 a.m. and will close on Tuesday, November 12 at 2:00 p.m. (Canary Islands time).
The placement institutions will not accept subscription requests post the specified deadline.
The date for issuance and disbursement is set for November 28, 2024, while the results of this issuance will be released in the Official Gazette of the Canary Islands on November 19, 2024.
SUBSCRIBERS, MINIMUM AND MAXIMUM AMOUNT
Any individual or legal entity may engage in this offer by obtaining prior information and submitting the relevant request through approved public debt placement institutions in the Autonomous Community of the Canary Islands, as authorised by the General Directorate of the Treasury and Financial Policy: Abanca Corporación Bancaria, Arquia Bank, Banca March, Banco Bilbao Vizcaya Argentaria, Banco Cooperativo Español (Cajasiete), Banco Santander, Bankinter, Banco Inversis (Cajamar), Caixabank, CBNK Banco de Colectivos, and Deutsche Bank.
The minimum amount for subscription requests made by a single subscriber is set at 1,000 euros, with higher amounts needing to be in whole multiples of this sum.
Additionally, a maximum request limit of 10 million euros has been imposed.
To promote a wide distribution of the nominal value of the issuance, it is anticipated that all requests meeting the minimum allocation threshold of 100,000 euros or less will be favourably considered and fully allocated. Otherwise, a prorating procedure will apply.
An explanatory brochure detailing the characteristics of the issuance is available at the placement entities and on the website of the Ministry of Finance and Relations with the European Union.
As of the end of the 2023 financial year, the Canary Islands holds the lowest public debt per capita ratio, at 2,928.13 euros, in comparison to the average of 6,745.64 euros for the rest of the Spanish communities.
Furthermore, the rating agency Standard & Poor’s (S&P) has assigned the Canary Islands an ‘A rating’, equivalent to that of the Kingdom of Spain.
The agency has maintained a stable outlook for the Canary Islands since March 25, 2022. “Our finances are robust; we lead Spain with the lowest public debt levels, thereby meeting our financial stability objectives,” concluded the counsellor.
