The proceeds of the EUR 1.4 billion bond will be used as funding for the Castor project, a strategically important project aiming to store gas underground off the Spanish coast and to assist in ensuring Spain’s energy supply. The European Investment Bank provided a EUR 200 million liquidity line in order to ensure a better rating for the issue. It will also purchase EUR 300 million of the bonds as an anchor investor.

The bond matures in 2034 and has an annual coupon of 5.756%, payable semi-annually, and was issued at par.

Watercraft Capital is a Luxembourg-registered special purpose vehicle that will on-lend the bond proceeds to Spanish company Escal, which in turn will use them for the refinancing of the project.

The Project Bond Initiative is a joint initiative by the European Commission and the European Investment Bank. Its objective is to stimulate capital market financing for large-scale infrastructure projects.