Instituto de Crédito Oficial (ICO), the Spanish Public Sector Agency, placed a new €1bn 5-year bond issue on March 4th. BBVA acted as lead manager of the issue, having achieved great success in pricing, good support from international accounts and an oversubscription ratio that doubled the initial offer.

The unit of Credit at BBVA Corporate & Investment Banking has taken advantage of stable market conditions and investor's willingness of yield in peripheral economies to allocate successfully ICO's debt.

The offering started with an official price of 35/40 basic points over the Spanish sovereign bonds and, within the first hour, orders already exceeded €1bn. On the back of a high demand, issuer was allowed to fix the final spread at 33bps over Spanish sovereign bonds, being the tightest spread achieved by ICO since September 2010.

More than 100 accounts were present in the deal, with a strong support form international investors. Approximately the 36% of the deal was allocated abroad, mostly in Germany, followed by United Kingdom, Italy and Nordic countries. In terms of investor type, Fund Managers took 38% of the allocated volume, followed by Banks, 36%, and Pension Funds, 24%.