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

The Andorran government approved a new public debt programme on Wednesday, authorizing emissions of up to €1.2 billion on international markets to refinance maturities, including €500 million due on 23 February 2027.

This framework, the seventh since 2013, allows the executive to issue a new €500 million bond at an opportune moment based on market conditions. Officials emphasized that the operation will renew the maturing debt without increasing overall public debt levels, providing flexibility amid current geopolitical and financial challenges.

Public debt stood at 29.4% of GDP at the end of last year, its lowest since 2011 when it reached 46.5%. Projections indicate it will continue declining.

The programme builds on the previous one from 2021, which first opened access to international markets and enabled social and sustainable bonds. Future issuances can qualify as social or sustainable, aligning with EU Regulation 2020/852 on sustainable finance taxonomy and Andorra's Law 21/2018 on energy transition and climate change. These support the country's commitments under the UN Framework Convention on Climate Change, to which it has been a party since 2011, and its ratification of the Paris Agreement by the General Council in 2016.

Governed by Luxembourg law and overseen by that country's Financial Sector Supervisory Commission, the initiative reinforces Andorra's standing in global capital markets as a transparent borrower.