CaixaBank on Tuesday placed £500 million of subordinated debt with a maturity of 10 years and 9 months.

This is the second issue in 2023 by the Spanish bank, which said it will have an early redemption option after 5 years and 6 months.

According to the bank, demand exceeded 1.3 billion pounds sterling and the interest rate was set at 370 basis points above the UKT (UK Treasury equivalent debt level).

With this operation, Caixabank strengthens its total capital ratio by 26 basis points (bps), to 17.13%.

Subordinated debt is debt in which investors, in the hypothetical case of a corporate liquidation, are behind the rest of the creditors in terms of collection preference or order of priority.

(Information by Tomás Cobos; edited by Darío Fernández)