Andorra Approves €1.2B Public Debt Programme to Refinance 2027 Notes

The Andorran government has approved a decree authorizing up to €1.2 billion in public debt issuance on international capital markets to refinance upcoming maturities, including €500 million in sustainable notes due on 23 February 2027.

This marks the seventh such programme since 2013 and maintains the framework for prudent financial management amid geopolitical and economic uncertainties. Officials stressed that the refinancing will not raise overall debt levels, which remain at their lowest since 2011 and are forecast to drop from 46.3% of GDP in 2021 to 21.4% by the end of 2026.

The move equips the government to approve a new issuance at the most suitable time, ensuring compliance with international market standards and efficient risk handling. The prior decree, dated 23 April 2021, opened Andorra's access to these markets for the first time and enabled social and sustainable bonds.

The new programme preserves that option, allowing issuances to qualify as social or sustainable under EU Regulation 2020/852 on sustainable finance taxonomy and Andorra's Law 21/2018 on energy transition and climate change. These align with the country's role as a party to the UN Framework Convention on Climate Change since 2011 and its ratification of the Paris Agreement by the General Council in 2016.

Governed by Luxembourg law and supervised by that country's Financial Sector Supervisory Commission, the initiative bolsters Andorra's reputation as a transparent participant in global capital markets.