Calyon acted as sole bookrunner for the EUR 700 million bond issue of the Basque Government (AAA). The transaction went very smoothly with strong investor demand over three times the initial amount, with significant participation from non-Spanish investors. The positive market response allowed the issuer to increase the size from the original EUR 500 million to EUR 700 million and to print at the low end of the initial guidance.

The deal was awarded to a joint team of Bankoa (subsidiary of Caisse Régionale Pyrénées Gascogne) and Calyon for two fundamental reasons. First, Bankoa is a Basque bank domiciled tax wise in the Basque country and, secondly, Calyon has a proven expertise in fixed income with Spanish local authorities.

This benchmark deal represents the return of the Basque regional government (Aaa, AAA, AAA) to the capital markets after ten years of consistent fiscal consolidation.