Andorra issues 500 million in sustainable notes to refinance public debt

The Government of Andorra has approved a public debt issuance for a nominal amount of €500,000,000 in sustainable Notes destined for international markets, maturing on October 7, 2029, with an interest rate of 3.875%. The decision is formalized through Decree 386/2026, dated September 30, 2026, signed by the Head of Government, Xavier Espot Zamora, and published in the Official Bulletin of the Principality of Andorra (BOPA) no. 113, dated October 7, 2026, within the section of Other Government provisions.

The operation is framed within the base prospectus approved by the Government on September 23, 2026, which covers a public debt issuance program in international markets for an amount up to a maximum of €1,200,000,000. According to the explanatory memorandum of the decree, the objective is to continue having an instrument that allows for meeting the refinancing needs of the State’s public debt and, if appropriate, formalizing new borrowing operations. With this, Andorra accumulates seven public debt issuance programs since December 4, 2013.

Financial characteristics of the issuance

The issuance is officially named “Sustainable Notes of the Principality of Andorra in international markets, issuance of October 7, 2026”. The final terms, annexed to the decree, detail the conditions:

• Total nominal amount: €500,000,000, corresponding to series 4, tranche 1.
• Issue date: October 7, 2026; maturity date: October 7, 2029.
• Interest rate: 3.875% fixed annually, with payments on October 7 of each year starting from 2027.
• Issue price: 99.958% of the nominal amount; indicative yield of 3.890% annually.
• Denominations: €100,000 and whole multiples above this amount.
• Expected credit rating: A- from Standard & Poor’s Global Ratings Europe Limited.
• Estimated net proceeds: €498,665,000; estimated admission to trading expenses of €2,650.

The notes are admitted to trading on the Luxembourg Stock Exchange and are subject to Luxembourg law, under the supervision of the Luxembourg Financial Sector Supervisory Commission. Euroclear, as the international central securities depository, has assigned the common code 352838098 and the ISIN code XS3528380986 to the issuance.

Use of funds and debt management

The funds raised are destined for the refinancing of the €500,000,000 sustainable notes issuance maturing on February 23, 2027. Additionally, and without prejudice to the final terms, the resources may be allocated to the financing or refinancing, total or partial, of eligible social or sustainable projects selected by the Government, aligned with Regulation (EU) 2020/852 and with Law 21/2018, of September 13, for the promotion of energy transition and climate change.

The decree also regulates active debt management mechanisms. The minister in charge of finances may carry out repurchase operations, with the prior oversight of the General Comptroller, to manage public debt positions while respecting the limits of financial sustainability and budgetary and fiscal stability. The regulation is framed within the General Law of Public Finance, of December 19, 1996, Law 1/2026, of January 22, on the budget for 2026, Law 10/2013, of May 23, of the Andorran Financial Authority, and Law 32/2014, of November 27, on the sustainability of public finances.

Placement and sales restrictions

The placement is carried out through a syndicate of financial entities. According to the final conditions, the distributors are:

• Banco Santander, S.A., Citibank Europe PLC and Crédit Agricole Corporate and Investment Bank, as directors.
• Andorra Banc Agrícol Reig, S.A., Crèdit Andorrà, S.A. and Mora Banc Grup, S.A., as joint directors.

The issuance is not intended for retail investors in the European Economic Area or the United Kingdom, and the target market is limited to eligible counterparties and professional clients. In Andorra, the notes may only be publicly offered, marketed, promoted, or traded by operating entities of the Andorran financial system authorized by the Andorran Financial Authority, in accordance with Law 7/2013 and Law 7/2024. The decree enters into force on the day of its publication in the BOPA.

The operation is relevant because it sets the State’s refinancing cost for three years and provides continuity to the Principality’s sustainable financing strategy, with a framework program that still has room up to 1,200 million euros. For investors, the A- rating and admission to the Luxembourg Stock Exchange place Andorran notes within the standards of regional issuers.

Fuente: Official Bulletin of the Principality of Andorra, no. 113, October 7, 2026, Government – Other provisions, p. 1/11 (official reference: Decree 386/2026, of 30-9-2026).