Caixa Geral de Depósitos to issue green bonds for the first time. It wants to raise €500 million

  • ECO News
  • 10 September 2021

CGD is the first bank in Portugal to go ahead with this type of operation. The institution led by Paulo Macedo aims to raise €500 million.

Caixa Geral de Depósitos (CGD) announced on Friday its first green bond issuance, being the first bank in Portugal to carry out this type of operation. The institution led by Paulo Macedo aims to raise a total of €500 million.

The funding raised from this issuance will be allocated to “credit operations of its clients in the environmental and socio-economic development areas,” said the bank.

The operation should be carried out next week, depending on market conditions. It involves a senior preferred green bond issuance with a 6-year maturity (September 2027) and a call after year 5 (2026).

“It will be an important milestone in achieving CGD’s commitments in the field of sustainable financing, creating value for its customers and reducing the environmental impact of its activity,” stresses the state bank.

The agency Moody’s has assigned a “Ba3” rating to CGD’s green bond issuance, positioning it at a level considered “investment grade”, while DBRS has assigned a “BBB” rating.

Caixa Geral de Depósitos closed the first half of the year with profits of €294 million, up 18% compared to the same period last year.