Canary Islands' Government Debt Operations

Approved Funding and Purpose

• The Canary Islands' government received approval to raise a maximum of €707 million through long-term debt operations, including bonds and loans.
• The funds are intended for:
  • Infrastructure projects
  • Environmental improvements
  • Housing projects

Specific Authorization Details

• Granted in a cabinet meeting held on February 18, 2025.
• A designated €100 million for financing investments and housing rehabilitation, particularly for protected homes.

Bond Issuance Details

• The government will issue 5-year bonds.
• Maximum nominal value of bonds: €100 million.
• Sale schedule: from November 13 to November 19, 2025.
• Payment date: December 4, 2025.
• Interest rate: fixed annual interest of 0.2%, paid annually.

Subscription Process

• Subscription period accessible to both individuals and entities.
• Minimum subscription: €1,000.
• Provisions for prorated allocations if oversubscribed.

Listing and Regulatory Compliance

• Bonds will be listed on the AIAF Fixed Income Market.
• The entire operation aligns with regional and national financial regulations.

Objectives and Benefits

• Ensuring funds go directly to projects that:
  • Boost infrastructure
  • Promote environmental sustainability
  • Increase housing availability in the islands
• The move aims to provide the Canary Islands with greater financial flexibility to support regional development initiatives while maintaining fiscal discipline.

"This move aims to provide the Canary Islands with greater financial flexibility to support regional development initiatives while maintaining fiscal discipline."