Andorra will issue up to 1.2 billion in public debt on international markets

The Government has approved the base prospectus covering a new public debt issuance program of the Principality of Andorra in international markets, for an amount of up to a maximum of €1,200,000,000. The measure is formalized through Decree 375/2026, of September 23, 2026, published in the Official Bulletin of the Principality of Andorra (BOPA no. 111, of September 30, 2026), within the Other provisions section. This is the highest figure authorized to date for a program of this type.

The text recalls that the Government has approved six public debt issuance programs since 2013 (decrees of December 4, 2013, March 30, 2016, September 20, 2017, May 8, 2019, March 25, 2020, and April 23, 2021). The 2021 program opened international capital markets to Andorran debt for the first time and introduced the possibility of issuing social and sustainable bonds; under its framework, three issuances were approved (April 28, 2021, October 5, 2021, and February 23, 2022).

The new program responds to the need to address the refinancing of the State’s public debt and, if applicable, the formalization of new borrowing operations. The regulation is framed within articles 50, 51, and 52 of the General Law of Public Finance, of December 19, 1996, article 18 of Law 1/2026, of January 22, on the budget for the 2026 financial year, and article 4.2.i of Law 10/2013, of May 23, of the Andorran Financial Authority.

A medium-term note program in euros

• Maximum amount: €1,200,000,000 in total accumulated amount of notes.
• Instrument: medium-term note program in euros.
• Validity of the base prospectus: twelve months; expires on September 25, 2027.
• Listing: request for admission to the official list and the regulated market of the Luxembourg Stock Exchange.
• Applicable law: Luxembourg law, under the supervision of the Luxembourg Financial Sector Supervisory Commission (CSSF).
• Legal Entity Identifier (LEI) of the issuer: 549300ZPD490G9UI0A49.

The terms and conditions of the program can be consulted at www.finances.ad, written in English, and are available at the Ministry of Finance - General Audit, at Carrer Prat de la Creu, 62-64, Andorra la Vella. The Catalan version attached as an annex to the decree is for informational purposes: the English version prevails in transactions.

Green, social, and sustainability bonds

Article 2 of the decree provides that the funds raised may be used to finance or refinance, totally or partially, social and sustainable projects aligned with Regulation (EU) 2020/852 and Law 21/2018, of September 13, for the promotion of energy transition and climate change.

Eligible green expenditure categories:

• Renewable energy.
• Energy efficiency.
• Clean transport.
• Sustainable water and wastewater management.
• Pollution prevention and control and circular economy.
• Sustainable management of living natural resources, land use and biodiversity protection.
• Climate change adaptation.

Eligible social expenditure categories:

• Access to essential services: health and healthcare.
• Access to essential services: education.
• Job creation.
• Affordable housing.
• Socioeconomic advancement and empowerment.

The selection of expenditures is carried out in two phases: an inter-ministerial working group coordinated by the Ministry of Finance prepares the preliminary list and a steering committee composed of representatives from the same ministry validates the final list. Sustainable Fitch issued a second independent opinion on September 24, 2026, and Crédit Agricole Corporate and Investment Bank acts as the sustainability coordinator.

Organizers, distributors and ratings

• Organizers: Santander Corporate and Investment Banking, Citigroup and Crédit Agricole CIB.
• Distributors: Andbank, Citigroup, Crédit Agricole CIB, Creand, MoraBanc and Santander Corporate and Investment Banking.
• Long-term debt ratings: A- by S&P Global Ratings and Fitch Ratings, and Baa1 with a positive outlook by Moody’s.

The notes have not been and will not be registered under the United States Securities Act and cannot be offered, sold or delivered to retail investors in the European Economic Area or the United Kingdom.

Debt starting point

According to the prospectus, the General Government’s total gross debt closed 2025 at 1,206.75 million euros, 30.30% of GDP, with State debt of 1,170.55 million. The average interest rate of the bonds is 1.31% and the weighted average maturity is 5.18 years. In April 2026, Law 4/2026, of April 30, reduced the maximum public and administrative debt thresholds relative to GDP from 40% to 35%.

With this program, Andorra consolidates its presence in international capital markets and provides itself with a financing instrument of up to 1,200 million euros, the highest authorized to date, intended both for refinancing existing debt and for green and social projects. For investors, the prospectus establishes the legal framework, credit ratings and conditions for future issuances.

Source: Official Bulletin of the Principality of Andorra, no. 111, of September 30, 2026, Other provisions, p. 1 (official reference: Decree 375/2026).