By Ronan Martin | Updated on Jun 09, 2026 at 04:08 PM
The Basque government raised €500 million ($577 million) in a sale of bonds to support the Spanish region’s industrial investment strategy.
The notes, due in October 2035, priced with a spread of 4 basis points over Spanish government bonds, tightened from the around 9 basis points offered earlier, according to a person familiar with the matter who asked not to be identified discussing private information. The deal pulled in more than €2.1 billion of final investor demand, the person said.
The bond issue is part of the region’s Industrial Strategy 2030 and Financial Alliance’s plan to borrow €1 billion from bonds and bilateral loans, alongside a goal of attracting €3 billion of private investment, officials from the Basque finance department said at a briefing.
The regional government operates differently to other parts of Spain as per an agreement to collect tax revenue and manage its own funds, known as the Concierto Económico. It pays an agreed amount to the national government in Madrid, the Cupo.
Thanks to its ring-fenced finances, the region has credit ratings of A2, AA- and A+, at Moody’s, S&P and Fitch, a level higher than those of Spain.
The Basque government typically raises a sustainable bond about once a year. Tuesday’s deal is additional to its regular funding, the finance team said. The region’s most recent issue, of April 2036 notes, priced in January at a yield of 4 basis points more than Spanish government bonds, which Tuesday’s deal matched and is the tightest to the nations debt the region has sold, data compiled by Bloomberg show.
Banco Bilbao Vizcaya Argentaria SA and Kutxabank SA acted as global coordinators, along with Banco de Sabadell SA, CaixaBank SA, Deutsche Bank AG, ING Groep NV and Banco Santander SA as bookrunners.