Daily Management Review

ICO Issues The First & The Largest ‘Social Bonds’ In Spain Market


03/18/2016


ICO has come up with the largest ‘Social Bond’ in Spanish market which addresses the issues of unemployment, underperformance, and wealth distribution.



Towards the end of January 2015, ICO “issued its debut EUR 1bn December 2017” which is a three years’ “Special Bond”. The said bond supports ICO’s “extending credit to ‘small, medium or micro enterprises’” related activities with the help of ICO’s “second-floor facilities”.
 
The latter, however, emphasises on two areas of employment issues like “creating and retaining” in the regions of Spain that are “underperforming”. Sustainalytics which is a research firm that specialises in governance, environment and social topics also gave a “positive second opinion” on the same issue.
 
Likewise, it reinforces ICO’s target areas as “most beneficial” ones that requires “employment creating”, whereby it is necessary to focus on regional scale that involves persistent “high unemployment” since the “financial crisis” that took place in the year of 2009. Moreover, the said bond was the first of social kind to the issued by the ICO, while it is also the “largest” one in the capital markets that come with a “social objective”.
 
Furthermore, it is also a testament towards the commitments made by the institute in support of “economic activities” which will “increase” besides improving the wealth distribution in Spain, whereby promoting the same as well.
 
During the time of issuing the notes ICO had agreed to publish a “Social Bond report showing” on its first anniversary. Keeping the promise, the institute has come up with the report that shows “how the proceeds had been allocated”. A “compliance review” was carried out by Sustainalytics which confirmed that “recipient SMEs fulfilled the criteria to receive the funds in all material respects”.
 
The total funding programme of ICO amounts to “€4-5bn” for the year of 2016. Moreover, it is also “guaranteed by the Kingdom of Spain” and is applicable to “all ICO debt”. The terms of the guarantee are “explicit, irrevocable, unconditional and direct”. In fact, ICO has plans of issuing another “Social Bond” in the year of 2016.
 
Talking about ICO, the Digitallook writes:
“Instituto de Crédito Oficial –ICO– (www.ico.es) is a state-owned bank attached to the Ministry of Economy and Finance of the Spanish Government. With more than 30 years’ experience, ICO has become a leading credit institution in financing SMEs and large-scale infrastructure projects in Spain and abroad. The Institute’s purpose is to boost any economic activity which, on account of its social, cultural, innovative or ecological significance, merits promotion and development”.






References:
http://www.digitallook.com/
 







Science & Technology

Motorola’s New Patent Will Self-Heal A Cracked Smartphone Screen

Auto Parts Out Of Wood Is What Japan Is Looking At Making

Security Firm Claims Hotel Guests Across Europe Were Targeted By Russia-Linked Hackers

World’s First Genetically-Modified Animal To Enter Food Supply Is Salmon

In The Future, UBS Analyst Says, Multiple Planes Could Be Operated From The Ground By Today’s Pilots

Will Germany save diesel?

How China became a pioneer of the solar industry

CNBC: Intel leaves the wearable gadgets market

Oculus Rift falls in price…again

Ukraine Police Official Says Likely Cover For Malware Installation Was Global Cyber Attack: Reuters

World Politics

World & Politics

China counts losses from sanctions against the DPRK

OCP Group Vs South African Courts: A storm is brewing on international maritime trade

Britain to conduct a study on labor migration after Brexit

CNN: Rex Tillerson may leave the post of US Secretary of State

Its South China Sea Territory Being Protected By Indonesia From 'Foreign' Threats

A Swarm-Like Attack From North Korea Could ‘Overwhelm’ South Korea's THAAD Missile Shield

Powerty in Italy tripled in 10 years

Hackers steal a businessman's reputation in Sweden