Canary Islands issue 100 million in bonds to materialize the RIC Reserve

The Regional Ministry of Finance and Relations with the European Union of the Government of the Canary Islands has ordered the issuance of 100 million euros in Public Debt Bonds of the Autonomous Community of the Canary Islands suitable for materializing the allocations to the Reserve for Investments in the Canary Islands (RIC) in 2026. The decision is formalized in the Order of September 29, 2026, published in the Official Gazette of the Canary Islands (Boletín Oficial de Canarias) no. 201, of October 7, 2026 (provision no. 3467, section III. Other Resolutions, pages 36323-36328). The regulation establishes the characteristics of the issuance and its placement through a public subscription offer.

The operation is supported by article 27.4.D.4.º of Law 19/1994, of July 6, amending the Economic and Fiscal Regime of the Canary Islands, and by article 94 of Law 11/2006, of December 11, of the Canary Islands Public Treasury, which empowers the counselor competent in treasury matters to issue securities and to do so through a public subscription offer. The Council of Ministers, in its meeting on December 23, 2025, authorized the Canary Islands to carry out long-term borrowing operations during 2026 for a maximum amount of 703,028,536 euros, valid until December 31, 2026.

Within that limit, an Agreement of the Council of Ministers of April 14, 2026, authorized the issuance of 100 million euros suitable for materializing allocations to the RIC, on the condition that the funds be allocated to investments in infrastructure and equipment, improvement and protection of the environment in Canary territory, or the rehabilitation of protected housing for rent, with a limit of 50% of the allocations for each financial year. The authorization only covers operations formalized by December 31, 2026.

Characteristics of the five-year bonds

• Issuer: Autonomous Community of the Canary Islands.
• Denomination: 5-year Bonds of the Autonomous Community of the Canary Islands.
• Maximum nominal amount: 100,000,000 euros.
• Minimum trading amount: 1,000 euros.
• Issuance and disbursement date: November 25, 2026; maturity: November 25, 2031.
• Issuance and redemption price: 100% of the nominal value, with a single redemption at maturity.
• Coupon: fixed at 0.20% nominal per annum, Actual/Actual ICMA basis, payable annually starting November 25, 2027.
• ISIN Code: ES0000093510.
• Trading: AIAF Fixed Income Market, represented by book-entry records through IBERCLEAR.

The maximum total cost of the operation, including commissions and other expenses, may not exceed the State’s financing cost for the average term increased by 50 basis points. The Bank of Spain acts as the issuance, management, and payment agent, and Analistas Financieros Internacionales, S.A. (AFI) as the technical coordinating entity.

Open subscription and placing entities

Any natural or legal person may participate in the offer between 8:00 AM on November 5, 2026, and 2:00 PM on November 11, 2026 (official Canary Islands time), through the placing entities authorized by Resolution No. 274/2024, of October 8, of the General Directorate of the Treasury and Financial Policy:

• Arquia Bank, S.A.
• Banca March, S.A.
• Banco Bilbao Vizcaya Argentaria, S.A.
• Banco Cooperativo Español, S.A. (Cajasiete, S.C.C.)
• Banco Santander, S.A.
• Bankinter, S.A.
• Banco Inversis, S.A. (Cajamar, S.C.C.)
• CaixaBank, S.A.
• CBNK Banco de Colectivos, S.A.
• Kutxabank Investment, Sociedad de Valores, S.A.U.
• Renta 4 Banco, S.A.

The minimum amount for applications is 1,000 euros, in whole multiples, and no application from the same subscriber may exceed 5,000,000 euros. If demand exceeds the offered nominal amount, pro-rata allocation will be applied, with priority for individual applications over joint applications and a minimum initial allocation of 50,000 euros (50 bonds) for individual ones. The result will be published by resolution of the General Directorate of the Treasury and Financial Policy in the Official Gazette of the Canary Islands.

Use of funds and liquidity

The resources will be used to finance investments in infrastructure and equipment, environmental improvement and protection actions in the Canary territory, or the rehabilitation of protected housing for rent in favor of persons registered in the Public Registry of Applicants for Protected Housing of the Canary Islands, with a limit of 50% of the allocations for each financial year and with credits provided for in the General Budgets of the Autonomous Community of the Canary Islands for 2026. The Community will also offer an annual liquidity window on coupon payment dates, through the repurchase of securities in the secondary market and their subsequent partial early redemption.

The Order, signed in Las Palmas de Gran Canaria on September 29, 2026, by the deputy counselor Gabriel Andrés Megías Martínez by delegation of the counselor, takes effect from the day of its publication.

The issuance offers Canary investors and companies a five-year fixed-income instrument with regional backing and, at the same time, channels 100 million toward productive investment and protected housing in the islands within the authorized debt limit for 2026. The schedule is tight: subscription opens on November 5 and the disbursement is set for November 25, 2026.

Source: Official Gazette of the Canary Islands, no. 201, of October 7, 2026, III. Other Resolutions, pages 36323-36328 (official reference: provision no. 3467).