MINISTRY
OF FINANCE
AND CIVIL SERVICE
COMPTROLLER GENERAL OF
THE STATE ADMINISTRATION
AUDIT OF CONSOLIDATED
ANNUAL ACCOUNTS
ICO - INSTITUTO DE CRÉDITO
OFICIAL (CONSOLIDATED
GROUP)
2024 Audit Plan -
Financial Year 2023
AUDInet Code 2024/57
PUBLIC AUDIT DIVISION I
Free translation of the auditor’s report originally issued in Spanish. In the event of a discrepancy, the Spanish-
language version prevails.
ANNUAL ACCOUNTS AUDIT. ICO - INSTITUTO DE CRÉDITO OFICIAL (CONSOLIDATED GROUP). 2024 AUDIT
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TABLE OF CONTENTS
I.
OPINION
II.
BASIS FOR OPINION
III.
KEY AUDIT MATTERS
IV.
OTHER MATTER PARAGRAPH
V.
OTHER INFORMATION
VI.
MANAGEMENT'S RESPONSIBILITY FOR THE CONSOLIDATED ANNUAL ACCOUNTS
VII.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED ANNUAL
ACCOUNTS
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AUDITOR’S REPORT OF CONSOLIDATED ANNUAL ACCOUNTS ISSUED BY THE
COMPTROLLER GENERAL OF THE STATE ADMINISTRATION (IGAE)
To the Chairman of the General Council of the Instituto de Crédito Oficial:
Opinion
The Comptroller General of the State Administration (IGAE), using the powers conferred upon it by
article 168 of the General Budget Law, has audited the consolidated annual accounts of Instituto
de Crédito Oficial (hereinafter, the Parent Company or the Institute) and its subsidiaries (together,
the Group), which comprise the consolidated balance sheet as at December 31, 2023, and the
consolidated profit and loss account, the consolidated statement of changes in equity, the
consolidated cash flow statement and the consolidated notes thereto for the year then ended.
In our opinion, based on our audit and the report of the other auditors listed in Appendix I, the
accompanying consolidated annual accounts present fairly, in all material respects, the equity and
financial position of the Group, and its consolidated results and cash flows for the year then ended,
in accordance with the regulatory financial reporting framework applicable to the Group (identified
in note 1.2 of the consolidated annual accounts) and, in particular, with accounting principles and
criteria set forth therein.
Basis for opinion
We conducted our audit in accordance with the audit regulations that apply to the Public Sector in
Spain. Our responsibilities in accordance with these regulations are further described in the
Auditor’s responsibilities for the audit of consolidated annual accounts section of our report.
We are independent of the Group in accordance with ethical and independence protection
requirements that apply to our audit of the consolidated annual accounts for the Public Sector in
Spain, as required by the regulations governing the audit activity of the Public Sector.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the consolidated annual accounts of the current period. These matters were
addressed in the context of our audit of the consolidated annual accounts as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
Estimated impairment losses of the portfolio of loans and advances
The impairment estimate of Financial Assets at Amortised Cost is one of the most significant
estimates in preparing the accompanying consolidated annual accounts.
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In order to estimate credit risk allowances, provisions of Circular 4/2017, of 27 November, and
other mandatory rules approved by the Bank of Spain are taken into consideration.
In general, the Institute estimates objective evidence of impairment when, after initial recognition,
an event or the combined effect of several events cause a negative impact on the future cash flows
from loans and advances to customers. Objective evidence of impairment is determined individually
for those debt instruments that the Institute has identified as significant and collectively for the
others. The Institute's collective assessment includes groups of debt instruments that have similar
risk characteristics, indicative of the debtors’ ability to pay principal and interest amounts, the type
of instrument, the debtor’s sector of activity, the type of collateral and the ageing of past due
amounts, among others.
The main audit procedures carried out have included the following:
•
Verifying the different internal control policies and procedures established in accordance
with applicable regulatory requirements.
•
Examining the different databases used, reviewing their reliability and the consistency of
data sources used in calculations.
•
For the detailed tests, for a sample of individualised loans, reviewing their proper accounting
records and classification and, where applicable, the corresponding impairment.
•
Recalculating the provisions for loans classified as Normal risk or Normal risk under Special
Surveillance, valued on the basis of alternative solutions established in the Bank of Spain Circular.
Valuation criteria used and the detail of information relating to the aforementioned items are
included in notes 2 and 10 of the accompanying consolidated report.
Risks associated with Information Technology
The very nature of the Institute’s activity and the process of the flow of financial information greatly
depends on information systems.
The overall internal control framework for information systems in relation to the processing and
recording of financial information is considered key to our internal control assessment.
In this context, it is considered necessary to assess the effectiveness of General Controls over
internal control on Information Technology Systems, regarding processes supporting the Institute’s
accounting registration and closing, in collaboration with our internal information systems
specialists.
Our audit approach has included the following procedures:
-
The evaluation of the most relevant general controls carried out by the Institute in key processes.
The main procedures carried out have consisted of general control tests on the main applications,
reviewing the following:
•
Change management.
•
Logical access
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•
IT Systems Operations.
-
Review of the existing interfaces between the main applications in the accounting reporting
process.
-
Analysis of the manual journal entry generation process, and selective testing of extraction and
filtering of unusual entries in the financial information systems.
The results of procedures have provided us with sufficient and adequate evidence to consider that
our conclusion on these facts as a key matter is appropriate.
Other matter paragraph
The audit firm Mazars Auditores, S.L.P., by virtue of the contract entered into with the Ministry of
Finance, at the proposal of the Comptroller General of the State Administration, has carried out the
audit work referred to in the first section. In this work, the Comptroller General of the State
Administration has applied the Technical Standard for relations with auditors in the public sector of
December 30, 2020.
The Comptroller General of the State Administration has drawn up this report on the basis of the
work carried out by the auditing firm Mazars Auditores, S.L.P.
Likewise, Mazars Auditores, S.L.P., in accordance with the stipulations of the second additional
provision of Law 22/2015, of 20 July, on Auditing, has issued, on April 11, 2024, another auditor’s
report on the consolidated annual accounts of the Institute and its subsidiaries, applying audit
regulations in force in Spain (ISA-ES). This report, intended to meet certain requirements laid down
in sectoral regulations, as well as for other commercial or financial reasons, has been issued with
the prior authorisation of the Comptroller General of the State Administration, by virtue of the
provisions of the collaboration contract.
The auditor’s report on the Institute’s consolidated annual accounts includes the "Report on other
legal and regulatory requirements - Single European Electronic Format", where the auditor
expresses an opinion on the digital files examined and whether they correspond in full with the
audited consolidated annual accounts, which are presented and have been marked up, in all
material respects, in accordance with the requirements set out in the ESEF Regulation.
Other information
The other information comprises the consolidated management report for the 2023 financial year,
the formulation of which is the responsibility of the Institute’s management body and is not an
integral part of the consolidated annual accounts.
Our auditor’s opinion on the consolidated annual accounts does not cover the management report.
Our responsibility regarding the management report, in conformity with the audit regulation,
consists of:
a)
Verifying solely that the non-financial information statement has been provided in the form
stipulated in the applicable legislation and, otherwise, reporting that fact.
b)
Assessing and reporting the consistency of the other information included in the management
report with the consolidated annual accounts, based on the knowledge of the Group obtained by
us during the audit of the aforementioned consolidated accounts, as well as reporting whether the
content and presentation of this part of the management report are compliant with applicable
regulations.
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If, based on the work that we have performed, we conclude that a material misstatement exists,
we are required to report that fact.
On the basis of the work performed, as described in the previous paragraph, we have checked that
the information referred to in section a) above is provided in the manner stipulated by the
applicable regulations, and that the remaining information contained in the management report is
consistent with that in the consolidated annual accounts for the 2023 financial year and that its
content and presentation are in accordance with applicable regulations.
Management’s responsibility for the consolidated annual accounts
The Institute’s Chairman is responsible for the preparation of the accompanying consolidated annual
accounts, such that they fairly present the Group’s equity, financial position and results, in
accordance with the financial reporting framework applicable to the Group in Spain, and for such
internal control as they determine is necessary to enable the preparation of consolidated annual
accounts free from material misstatement, whether due to fraud or error.
In preparing the consolidated annual accounts, the management committee is responsible for
assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis, unless the management committee
either intends or has a legal obligation to liquidate the Group or cease operations, or has no realistic
alternative.
Auditor’s responsibilities for the audit of the consolidated annual accounts
Our work did not include audits of the annual accounts of AXIS Participaciones Empresariales
Sociedad Gestora de Entidades de Capital Riesgo, S.A., Compañía Española de Reafianzamiento,
S.M.E., S.A., and COFIDES, Compañía Española de Financiación del Desarrollo, S.A., investees;
whose information is detailed in Appendix I of the consolidated annual accounts, and whose net
book value represents 0.10% and 4.78% of the Group’s total assets and net results, respectively.
The aforementioned annual accounts have been audited by the audit firm Ernst & Young, S.L., in
the case of AXIS Participaciones Empresariales Sociedad Gestora de Entidades de Capital Riesgo,
S.A., and by Mazars Auditores S.L.P., in the case of Compañía Española de Reafianzamiento, S.M.E.,
S.A., and COFIDES, Compañía Española de Financiación del Desarrollo, S.A., and our opinion
expressed in this report on the consolidated annual accounts is solely based, as regards the
shareholding indicated, on the report of the other auditors.
Our objectives are to obtain reasonable assurance about whether the consolidated annual accounts
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with audit regulations for the Public Sector in Spain will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence users’
economic decisions taken on the basis of the annual accounts.
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As part of an audit in accordance with audit regulations for the Public Sector in Spain, we exercise
our professional judgement and maintain professional scepticism throughout the audit.
We also:
•
Identify and assess the risks of material misstatement of the consolidated annual accounts,
whether due to fraud or error, design and perform audit procedures responsive to those risks and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher than one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the
override of internal control.
•
Obtain an understanding of the internal control relevant for the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purposes of expressing
an opinion on the effectiveness of the Group's internal control.
•
Assess the appropriateness of accounting policies used and the reasonableness of
accounting estimates and the related disclosures made by management.
•
Conclude on the appropriateness of the management committee of the audited entity’s use
of the going concern basis of accounting is appropriate and, based on the audit evidence obtained,
whether a material uncertainty exists related to the events or conditions that may cast significant
doubt on the group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report on the related
disclosures in the consolidated annual accounts or, if such disclosures are not adequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue
as a going concern.
•
Evaluate the overall presentation, structure and content of the consolidated annual
accounts, including disclosures, and whether the consolidated annual accounts represent the
underlying transactions and events in a manner that achieves fair presentation.
•
Obtain sufficient and appropriate evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for directing, supervising, and performing the audit of the Group
as outlined at the beginning of this section. We are solely responsible for our auditor’s opinion.
We communicate with the Institute’s Chairman regarding, among other matters, the planned scope
and timing of the audit and the significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
From the matters communicated to the governing body of the entity, we determine those matters
that were of most significance in the audit of the consolidated annual accounts of the current period
and are, therefore, the key audit matters.
We describe these matters in our auditor’s report, unless laws or regulations preclude public
disclosure about the matter.
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This auditor’s report was signed electronically through the CICEP.red application of the Comptroller
General of the State Administration by the Audit Director and by the Head of the Public Audits
Division I of the National Audit Office in Madrid on April 11, 2024.
INSTITUTO DE CRÉDITO OFICIAL
AND SUBSIDIARIES
Consolidated Annual Accounts at 31 December 2023 and
Consolidated Management Report corresponding to 2023
Free translation of consolidated annual accounts originally issued in Spanish.
In the event of a discrepancy, the Spanish-language version prevails
x
2 158 748
2 637 489
24 197
30 637
24 197
30 637
-
-
-
-
1 624 558
2 460 191
1 533 557
1 325 031
91 001
1 135 160
27 204 578
23 866 671
6 302 584
6 781 025
20 901 994
17 085 646
8 300 598
6 911 989
12 601 396
10 173 657
302 772
438 822
89 486
84 564
-
-
89 486
84 564
82 291
83 089
82 291
83 089
-
-
8 340
6 866
8 340
6 866
171 206
178 675
22 236
4 330
148 970
174 345
23 127
15 906
23 127
15 906
-
-
31 689 303
29 802 910
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AT 31 DECEMBER 2023 AND 2022
(Expressed in thousands of Euros)
1
ASSETS
2023
2022
Cash, deposits at central banks and demand deposits (Note 6)
Financial assets held for trading (Note 7)
Derivatives
Memorandum item: loaned or advanced as collateral
Financial assets not held for trading obligatorily valued at fair value through profit or loss
(Note 8)
Financial assets at fair value through other comprehensive income (Note 9)
Equity instruments
Debt securities
Loans and advances
Memorandum item: loaned or advanced as collateral
Financial assets at amortised cost (Note 10)
Debt securities
Loans and advances
Credit institutions
Customers
Memorandum item: loaned or advanced as collateral
Hedging derivatives (Note 11)
Investments in joint ventures and associates (Note 12)
Joint ventures
Associates
Property, plant and equipment (Note 13)
Property, plant and equipment
For own use
Memorandum item: Acquired under lease
Intangible assets (Note 14)
Other intangible assets
Tax assets (Note 15)
Current tax assets
Deferred tax assets
Other assets (Note 16)
Other assets
Non-current assets and disposable groups of elements qualified as held for sale (Note 17)
TOTAL ASSETS
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AT 31 DECEMBER 2023 AND 2022
(Expressed in thousands of Euros)
2
LIABILITIES
2023
2022
Financial liabilities held for trading (Note 7)
Derivatives
Financial liabilities at fair value through profit or loss
Financial Liabilities at amortised cost (Note 18)
Deposits
Central Banks
Credit Institutions
Customers
Marketable debt securities
Other financial liabilities
Hedging derivatives (Note 11)
Provisions (Note 19)
Pensions and similar obligations
Provisions for contingent exposures and commitments
Other provisions
Tax Liabilities (Note 15)
Current tax liabilities
Deferred tax liabilities
Other liabilities (Note 16)
TOTAL LIABILITIES
EQUITY
Equity (Note 20)
Capital or endowment fund
Accumulated reserves
Revaluation reserves
Other reserves
Profit attributable to owners of the parent
Less: Interim dividends
Other accumulated comprehensive income (Note 21)
Elements that cannot be reclassified at profit and loss
Changes in fair value equity inst. at fair value through other comprehensive income
Elements that can be reclassified at profit and loss
(175 076 )
(221 008 )
Hedging derivatives. Cash flow hedge reserve
(175 795 )
(192 695 )
Changes in fair value debt inst. at fair value through other comprehensive income
(28 313 )
TOTAL EQUITY
TOTAL EQUITY AND LIABILITIES
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AT 31 DECEMBER 2023 AND 2022
(Expressed in thousands of Euros)
3
MEMORANDUM ITEM
2023
2022
Granted financial guarantees (Note 22)
Other granted commitments (Note 22)
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS CORRESPONDING TO YEARS ENDED AT 31
DECEMBER 2023 AND 2022
(Expressed in thousands of Euros)
4
2023
2022
Interest and similar income (Note 24)
Interest and similar charges (Note 25)
(712 032 )
(200 270 )
NET INTEREST INCOME
Dividends income (Note 26)
Profit/(loss) from entities valued through equity method (Note 27)
Fee and Commission income (Note 28)
Fee and Commission expense (Note 28)
(9 467 )
(9 025 )
Gains or losses on financial assets and liabilities not measured at fair value through profit or loss (net) (Note
29)
(21 446 )
Financial assets at fair value through other comprehensive income
(20 946 )
Financial assets at amortised cost
(500 )
Other financial liabilities and financial assets
Gains or losses on financial assets and liabilities held for trading (net) (Note 30)
(259 )
Gains or losses on financial assets obligatorily at fair value through results (net) (Note 31)
Gains or losses resulting from hedge accounting (net) (Note 32)
Exchange differences (net) (Note 2.4)
(3 744 )
Other operating income and expenses (Note 33)
Administration expenses
(47 843 )
(45 340 )
Personnel costs (Note 34)
(26 977 )
(24 242 )
Other administration expenses (Note 35)
(20 866 )
(21 098 )
Depreciation and amortisation
(4 653 )
(5 662 )
Property, plant and equipment (Note 13)
(2 268 )
(2 167 )
Intangible assets (Note 14)
(2 385 )
(3 495 )
Provisions expense or reversal of provisions (Note 19)
(3 517 )
Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss
Financial assets at fair value through other comprehensive income (Note 9)
Financial assets at amortised cost (Notes 10)
Impairment or reversal of impairment on non-financial assets
(4 )
(77 )
Goodwill and other intangible assets (Note 14)
Other assets (Note 17)
(4 )
(77 )
Gains/ (Losses) on non-current assets and groups held for sale of elements classified as held for sale not
classified as discontinued operations (Note 17)
PROFIT OR LOSS BEFORE TAX FROM CONTINUING OPERATIONS
Income tax expenses (income) from continuing operations (Note 23)
(104 719 )
(57 033 )
PROFIT OR LOSS AFTER TAX FROM CONTINUING OPERATIONS
PROFIT OR LOSS AFTER TAX FROM DISCONTINUED OPERATIONS
CONSOLIDATED PROFIT OR LOSS FOR THE YEAR
Profit or loss attributable to the parent company
Memorandum item: GROSS MARGIN
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF RECOGNISED INCOME AND EXPENSES
CORRESPONDING TO YEARS ENDED AT 31 DECEMBER 2023 AND 2022
(Expressed in thousands of Euros)
5
2023
2022
Profit/(loss) for the year
Other comprehensive income
Elements not reclassified on income statement
Variations in fair value equity instruments at fair value through other comprehensive
income (Note 21)
Profit or loss hedge accounting
Income tax of elements not reclassified in profit or loss
(6 897 )
(92 176 )
Elements that can be reclassified in profit or loss
(59 717 )
Hedging of cash flows, effective portion (Note 21)
(39 663 )
Debt instruments at fair value through other comprehensive income (Note 21)
(45 647 )
Income tax of elements that can be reclassified on profit or loss
(19 685 )
Comprehensive income for the year
Attributable to the owners of the parent
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CORRESPONDING TO
YEARS ENDED AT 31 DECEMBER 2023 AND 2022
(Expressed in thousands of Euros)
6
At 31 December 2023
EQUITY
RESERVES
Capital /
Endowmen
t fund
Share
premium
Accumulated
reserves
(losses)
Reserves
(losses) of
entities valued
through equity
method
Other capital
instruments
Less:
Treasury
shares
Profit/(loss)
for the year
attributable
to the
parent
company
Less:
dividends and
remunerations
Total
equity
Other
accumulated
comprehens
ive income
Minority
shareholders
Total
Equity
Closing balance at 31
December 2022
Total recognised income and
expenses
Other variations of equity:
(146 832 )
(127 238 )
(127 238 )
Capital increases / endowment
fund
Capital decreases
Transfers between equity items
Other increases (decreases) of
equity
(146 832 )
(127 452 )
(127 452 )
Closing balance at 31
December 2023
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CORRESPONDING TO
YEARS ENDED AT 31 DECEMBER 2023 AND 2022
(Expressed in thousands of Euros)
7
At 31 December 2022
EQUITY
RESERVES
Capital /
Endowmen
t fund
Share
premium
Accumulated
reserves
(losses)
Reserves
(losses) of
entities valued
through equity
method
Other capital
instruments
Less:
Treasury
shares
Profit/(loss)
for the year
attributable
to the
parent
company
Less:
dividends and
remuneration
s
Total
equity
Other
accumulated
comprehens
ive income
Minority
shareholder
s
Total Equity
Closing balance at 31
December 2021
(26 734 )
Total recognised income
and expenses
Other variations of equity:
(139 861 )
(122 609 )
(122 609 )
Capital increases /
endowment fund
Capital decreases
Transfers between equity
items
(139 861 )
(139 861 )
(139 861 )
Other increases (decreases)
of equity
Closing balance at 31
December 2022
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS CORRESPONDING TO YEARS
ENDED AT 31 DECEMBER 2023 AND 2022
(Expressed in thousands of Euros)
8
2023
2022
A. CASH FLOWS FROM OPERATING ACTIVITIES
(473 359 )
(6 606 242 )
1. Consolidated profit/(loss) for the year
2. Adjustments to obtain operating cash flows
Depreciation and amortisation
Other adjustments
3. Net increase /(decrease) in operating assets
(2 367 005 )
Financial assets held for trading
(19 935 )
Other financial assets at fair value through profit or loss
Financial assets at fair value through other comprehensive income
(67 684 )
Financial assets at amortised cost (2019)
(3 337 908 )
Other operating assets
4. Net increase/(decrease) in operating liabilities
(8 221 849 )
Financial liabilities held for trading
(6 104 )
Other financial liabilities at fair value through profit or loss
Financial liabilities at amortised cost
(8 892 592 )
Other operating liabilities
(270 676 )
5. Collections/(payments) for income tax
(26 754 )
(5 810 )
B. CASH FLOWS FROM INVESTMENT ACTIVITIES
(5 597 )
(13 161 )
6. (Payments)
(6 395 )
(13 161 )
Property, plant and equipment (Note 13)
(1 212 )
Intangible assets (Note 14)
(1 474 )
(3 806 )
Investments in subsidiaries and associates (Note 12)
(4 921 )
(8 143 )
Non-current assets and liabilities associated for sale (Note 17)
Other payments related to investing activities
7. Collections
Property, plant and equipment (Note 13)
Intangible assets (Note 14)
Shareholdings (Note 12)
Non-current assets and liabilities associated for sale (Note 17)
Debt securities at amortised cost (Note 10.1)
Other collections related to investing activities
INSTITUTO DE CRÉDITO OFICIAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS CORRESPONDING TO YEARS
ENDED AT 31 DECEMBER 2023 AND 2022
(Expressed in thousands of Euros)
9
2023
2022
C. CASH FLOWS FROM FINANCING ACTIVITIES
(122 753 )
8. (Payments)
(122 960 )
Dividends
Subordinated liabilities
Amortisation of own equity instruments
Acquisition of own equity instruments
(122 960 )
Other payments related to financing activities
9. Collections
Subordinated liabilities
Issue of own equity instruments
Disposal of own equity instruments
Other collections related to financing activities (Note 20)
D. EFFECT OF EXCHANGE RATE FLUCTUATIONS
E. NET INCREASE/DECREASE IN CASH OR CASH EQUIVALENTS
(478 741 )
(6 742 156 )
F. CASH OR CASH EQUIVALENTS AT BEGINNING OF THE YEAR
G. CASH OR CASH EQUIVALENTS AT END OF THE YEAR
MEMORANDUM ITEM
COMPONENTS OF CASH AND EQUIVALENTS AT THE END OF THE PERIOD
Cash (Note 6)
Cash equivalent balances with central banks (Note 6)
Other financial assets (Note 6)
Less: bank overdrafts repayable
10
AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
corresponding to the year ended at 31 December 2023
11
1. INTRODUCTION, BASIS OF PRESENTATION AND OTHER INFORMATION
1.1 Introduction
Credit Organisation and System was regulated, up until the publication of Royal Decree Law 12/1995
on Urgent Budget, Tax and Financial Measures, by the provisions of Article 127 of Law 33/1987 on
the General State Budgets for 1988 and some provisions not repealed of Law 13/1971.
The Institute is domiciled at Paseo del Prado, 4, in Madrid , Spain place where it carries out all of its
activities without having any other office network in Spain.
the Secretary of State for Economy and Company Support; it is a credit institution by law and is
considered to be a State Finance Agency with its own legal personality, assets and finance, as well
as management autonomy to fulfil its purpose.
The Secretary of State for Economy and Company Support is responsible for the strategic
management of the Institute, as well as for the evaluation and control of the results of its activities.
The Institute is governed by the provisions of the Law 40/2015 on the Legal Regime of the Public
Sector, through Additional Provision Six of Royal Decree-Law 12/1995, on Urgent Budget, Tax and
Financial Measures; by applicable provisions of Law 47/2003, of 26 November, General Budget, by
its bylaws, approved by Royal Decree 706/1999, on the adaptation of Instituto de Crédito Oficial to
Law 6/1997 (14 April) and the approval of its bylaws, and any other matter not covered by the above
regulation, are governed by the special legislation applicable to credit institutions and general civil,
mercantile and employment legislation.
Concerning the Corporate Governance, in addition to the abovementioned Law 40/2015, Royal
Decree 1149/2015, of 18 December, is applicable to the Institute. Since its entry into force, the
General Council is made up by the President and 10 Members (9 until then), in whose appointment
objective selection criteria are applied, such as the prestige and training, regulating incompatibilities,
and establishing a three-year period, renewable (only once) for three more. Independent Members
have double vote in financial business matters and will therefore be majority in the ICO’s General
Council. The Members’ appointment and cessation is the responsibility of the Council of Ministers, at
the proposal of the Minister of Economy, Commerce and Business.
The requirements to be appointed as independent Director include: recognised commercial and
professional honourability, have appropriate knowledge and experience, not incurring potential
permanent conflicts of interest and refrain from developing activities by self-employed or employed
which involve effective competition with the ICO. Furthermore, it is required not be linked to credit
institutions; financial credit establishments; investment firms; collective investment schemes, risk
capital entities, its subsidiaries and the group which they belong to or associations.
The General Board members will have to perform their functions always attending to the ICO interest,
as well as keeping secret on information, data, reports and confidential backgrounds to which they
have had access in the performance of their duties, even after ceasing their duties. The dismissal can
occur by resignation accepted by the Minister of Economy, Commerce and Business, expiry of the
mandate for the independent Members or termination in the case of Members from the public sector.
Unexpected lack of suitability in the case of independent members will be cause of dismissal, just like
serious breach of confidentiality duties or conflict of interest.
12
The Institute's purposes are to sustain and promote economic activities that contribute to growth, and
the improvement of national wealth distribution, especially, of all those activities that deserve some
support due to their social, cultural, innovative or ecological importance.
When pursuing these aims, the Institute must completely respect the principles of financial balance
and the adaptation of the means to purposes.
The Institute has also the following functions:
a) Contribute to the mitigation of the economic effects deriving from serious economic
recessions, natural catastrophes or similar situations, in accordance with the instructions
received in this aspect from the Council of Ministers or the Government Commission for
Economic Matters.
b) Act as the principal instrument for executing certain economic policy measures, in line with the
fundamental guidelines established by the Council of Ministers or the Government
Commission for Economic Matters, or the Ministry of Economy, Commerce and Business,
subject to the rules and decisions adopted by its General Board.
Within the framework of these purposes and duties, the following types of operations are included:
1. Direct and mediation activities, modalities that count with a wide catalogue of financing
products and collaterals through which ICO contributes to promoting feasible business
projects, favouring the growth of companies, their long-term investments, and international
activity, in order to promote the sustainable growth, employment generation, and wealth
distribution.
2. Reciprocal Interest Adjustment Agreement (CARI for its initials in Spanish). This exportation
support system ensures a good performance for the member financial institution, domestic or
foreign. The Institute merely acts as an intermediary in the operation, charging the State for
its management costs, in accordance with the provisions of the General State Budget Act for
each year.
The net result of interest adjustments with member banks is regularly offset by the State or
through a payment by the Institute to the State, depending on which part is the debtor or
creditor, respectively.
3. Development Promotion fund (FONPRODE for its initials in Spanish). This Fund was
established in 2010 under Act 36/2010. It is designed to finance development projects and
programs in under developed countries in the form of State-to-State grants. The Institute acts
as a Government agent. The structure, administration and accounting of these operations is
kept separated from all other operations, in independent accounts maintained by the Institute,
and for what the ICO is reimbursed for the cost of management in accordance with the General
State Budget for each year. As of December 2010, this particular Fund, acquired the Fund for
micro-credits granting, also managed by the Institute since 1998 until its merger into
FONPRODE.
4. Companies Internationalisation Fund (FIEM for its initials in Spanish). This Fund was
established in 2010 under Act 11/2010. Its activity consists on providing reimbursable
financing for projects, under concessions or market terms, tied to the acquisition of Spanish
goods and services and to the execution of Spanish investment projects or those of national
interest. The Institute acts as a Government agent and the structuring, administration and
accounting for these operations is kept separate from all other operations, in independent
accounts maintained by the Institute and for what the ICO is reimbursed for the cost of
13
management in accordance with the General State Budget for each year.
5. Water and Sanitation Cooperation Fund. It was created through the Sixty-First Additional
Provision of Law 51/2007, 26 December, of the 2008 General State Budget to fund water and
sanitation projects under the financing arrangements with the national authorities of the Latin
America Countries, considered a priority for the Spanish cooperation.
6. Finance Fund to Local Entities, resulting from the 17/2014 Royal Decree-Law, of 26
December, measures of financial sustainability of the autonomous communities and local
entities and others of economic nature, in order to ensure financial sustainability of the
municipalities attached, by addressing its financial requirements. The equity of the Fund is
endowed by the result of the liquidation of the Fund for the Financing of Payments to Suppliers
(created by Royals Decrees 4/2012 and 7/2012), which happens in all its rights and
obligations, effective January 1, 2015. ICO plays the trader role, without registering any of
these operations on its accounting records. This activity generates for the Institute a pertinent
trading commission.
7. Finance Fund to Autonomous Communities resulting from 17/2014 Royal Decree-Law of 26
December, measures of financial sustainability of the autonomous communities and local
entities and others of economic nature, in order to ensure financial sustainability of the
autonomous communities attached. The equity of the Fund is endowed by the result of the
liquidation of the Autonomous Region Liquidity Fund (created by Royal Decree 21/2012),
which happens in all its rights and obligations, effective January 1, 2015. Also, it included in
the equity part of the funding mechanism for payment to suppliers in the part corresponding to
Autonomous Communities. ICO plays the trader role, without registering any of these
operations on its accounting records. This activity generates for the Institute a trading
commission.
8. ICO COVID-19 surety lines, established and regulated by RD Law 8/2020, of 17 March, RD
Law 25/2020, of 3 July, RD Law 11/2020, of 31 March, RD Law 34/2020, of 17 November and
RD Law 5/2021, of 12 March. This regulation, developed through the corresponding
Agreements of the Council of Ministers, approved the establishment of several State surety
lines, subject to the EU State aids regulations, for an amount above 140,000 million Euros, in
order to ease the maintenance of employment and palliate the economic effects of the health
crisis caused by the COVID-19. Sureties were granted to financing granted by financial entities
to ease the access to credit and liquidity for businesses and employers (liquidity surety lines),
as well as to face the financial needs derived from the performance of new investments
(investment surety lines). Additionally, specific tranches were enabled, establishing sureties in
issues of promissory notes made by companies in the Alternative Fixed-Income Market
(MARF). Sureties have a term of up to 8 years. Lastly, a surety line was also contemplated for
lessees, in the modality of liquidity loans, guaranteed and subsidised by the State to face the
lease of the families’ main residences. By Council of Ministers Agreement of June 21, 2022,
the possibility of extending the maturity of guarantees managed on behalf of the State was
enabled, in the liquidity and investment lines, throughout the operations’ life. In this activity,
ICO acts on behalf of the State, exercising management and administration functions, for
which the Institute accrues the corresponding commissions, registered as income in the
income statement.
9. UKRAINE surety line. This line is included in the Plan to respond to the Russian war in Ukraine,
and is allocated with up to 10,000 million Euros. The line is subject to EU state aid regulations
and is regulated by Royal Decree Law 6/22 of 19 March and, as regards the tranches managed
by the ICO, by the MCA of May 10, 2022 (subsequently amended by the MCA of October 11,
2022), and by the MCA of November 22, 2022, the MCA of December 27, 2022 and the MCA
of December 5, 2023, subsequently amended by the MCA of December 27, 2023. In this
14
activity, the ICO also acts in the name and on behalf of the State, performing management
and administration functions for which the Institute earns the corresponding fees which are
recorded as income in the income statement.
Except for the direct and mediation activity, which is included in the Institute’s accounts, its
remaining functions are management operations of public funds, performed by ICO as State’s
Financial Agency, and therefore are not included in the Institute’s accounts, by virtue of regulations
applicable to them.
1.2 Bases of presentation of the consolidated annual accounts
The Group presents its consolidated annual accounts according to the International Financial
Reporting Standards adopted by the European Union (hereinafter, IFRS-EU), taking into account
accounting principles and standards established by Circular 4/2017, of 27 November (hereinafter,
Circular 4/2017), of Bank of Spain, on public and reserved information standards and models of
financial statements. This Circular 4/2017 is compulsorily applicable to individual annual accounts of
the Spanish Credit Institutions.
Accordingly, the preparation of the accompanying consolidated annual accounts has been based on
the Group Companies’ accounting records and in agreement with the International Financial
Reporting Standards (IFRS) adopted by the European Union (IFRS-EU) and Circular 4/2017 of Bank
of Spain, and subsequent amendments, and with the Commercial Code, Capital Corporations Act or
other applicable Spanish regulations, to show the true and fair view of the Group’s consolidated equity
and consolidated financial situation at December 31, 2023 and results from its operations, changes
in consolidated equity and consolidated cash flows corresponding to the year therein ended.
The information contained on in these consolidated annual accounts corresponding to 2023 is solely
and exclusively presented for comparison purposes with information related to 2023 and, accordingly,
does not constitute the Group’s formulated annual accounts of 2022.
Note 2 summarises the most significant accounting principles, policies and valuation criteria, applied
in the preparation of the Group’s annual accounts corresponding to the year ended at December 31,
2023.
Main regulatory changes during the period from January 1 to December 31, 2023
Bank of Spain Circular 1/2023, of 24 February
This rule establishes information to be sent to Bank of Spain on guaranteed funds and other loan
mobilisation instruments, and amends Circulars 4/2017 and 4/2019. The rule has not had a significant
impact on ICO.
Bank of Spain Circular 2/2023, of 17 March
This rule updates Bank of Spain Circular 1/2013, of 24 May, on the Central Risk Information Centre.
It has not had a significant impact on ICO.
Bank of Spain Circular 3/2023, of 31 October
This rule amends Circular 2/2016, of 2 February, completing the adaptation of the Spanish legal
system to Directive 2013/36/EU and Regulation (EU) No 575/2013, and Circular 1/2022, of 24
January, to financial credit institutions, on liquidity, prudential rules and reporting obligations. It has
not had a significant impact on ICO.
15
IFRS 17: “Insurance contracts”
IFRS 17 establishes the principles of registration, valuation, presentation and disclosure of insurance
contracts. Its objective is to ensure that an entity provides relevant information, fairly representing
such contracts. IFRS 17 substitutes IFRS 4 on insurance contracts and enters into force for years
beginning from January 1, 2023.
Modifications of IAS 1: “Presentation of financial statements”
It introduces clarifications on requirements to be applied in the classification of liabilities as current or
non-current, and enters into force in years beginning from January 1, 2023.
All compulsory accounting principles and standards with a significant effect have been applied in their
preparation, including on Note 2 a summary of accounting principles and standards and the most
significant valuation criteria applied on the present consolidated annual accounts. The Chairman of
the Group’s Parent Company is responsible for the information contained on the present consolidated
annual accounts.
The Group’s consolidated annual accounts of 2023 have been formulated by the Parent Company’s
Chairman on March 26, 2024, awaiting approval by the Institute’s General Board, Group’s Parent
Company, expecting their approval without significant changes. The present consolidated annual
accounts, unless otherwise indicated, are presented in thousands of Euros.
1.3 Responsibility for information and estimates.
The information contained in the Group’s consolidated annual accounts for the year ended at
December 31, 2023 and the accompanying consolidated Notes are responsibility of the Institute’s
Chairman. In the preparation of these annual accounts, some estimates have been made by the
Group to quantify certain assets, liabilities, income, expenses, and commitments included in those
statements. These estimates basically refer to the following:
- Impairment losses of financial assets (Note 2.7).
- Assumptions used in actuarial calculations of liabilities and commitments related to post-
employment benefits and other long-term commitments with employees (Note 2.10.2).
- Useful life of fixed assets and intangible assets (Notes 2.12 and 2.13).
- Losses on future obligations derived from granted contingent commitments (Note 2.14).
- The fair value of certain unlisted assets (Note 2.2.3).
- Recoverability of tax assets (Note 2.11).
Although these estimates were made based on the best information available at December 31, 2023
in relation to the analysed facts, future events could lead significant adjustments to be made (upward
or downward) in coming years. These changes would be made prospectively, to recognise the impact
of the change in the estimate of the consolidated income statement for the specific years.
1.4 Transfer of assets and liabilities from the former Argentaria
The extinct entities Argentaria, Caja Postal y Banco Hipotecario, S.A., were the result of the merger
between Corporación Bancaria de España, S.A., Banco Externo de España, S.A. (BEX), Caja Postal,
S.A. and Banco Hipotecario de España, S.A. (BHE), in accordance with the public merger document
dated September 30, 1998. Banco de Crédito Agrícola, S.A. (BCA), which was previously taken over
by Caja Postal, S.A. and Banco de Crédito Local de España, S.A. (BCL), which also pertained to the
first entity, Argentaria, maintains its legal personality.
16
Based on what was established in the A.C.M. on February 15, 1993, the Institute acquired on
December 31, 1992, assets and liabilities pertaining to BCL, BHE, BCA and BEX derived from
economic policy operations that were guaranteed by the State or the Institute and, specifically, the
loans and guarantees provided to companies in conversion (covered by the conversion and re-
industrialisation legislation). Also, exceptional loans granted to victims of floods were acquired, as
well as loans granted by these entities prior to their transformation into public limited liability
companies, and other assets, rights and equity investments.
Furthermore, on March 25, 1993, a management contract was signed with the relevant banks,
regarding the assets and liabilities transferred, including its administration as well as its correct
accounting in accordance of the current banking legislation.
On January 2019, both the management, and the administration and bookkeeping of transferred
assets and liabilities was assumed by the Institute. At December 31, 2023, the balance of net assets
was of 8 thousand Euros and the amount of results generated in the year was of 109 thousand Euros
(12 thousand Euros of net assets and 112 thousand Euros of results at December 31, 2022).
1.5 Presentation of individual annual accounts
In accordance with Article 42
nd
of the Spanish Code of Commerce, the Institute has formulated, at the
same date as the present consolidated annual accounts, individual annual accounts, prepared in
accordance with the same accounting principles and standards and valuation criteria applied on the
Group’s present consolidated annual accounts. The consolidation effect on the accompanying
balance sheet at December 31, 2023 and 2022, the income statement, the statement of total changes
in equity, the statement of recognised income and expenses, and the statement of cash flows of 2023
and 2022, implies the following differences:
Thousands of Euros
2023
2022
Individual
Consolidated
Individual
Consolidated
Assets
31 656 823
31 689 303
29 774 943
29 802 910
Equity
5 689 068
5 776 071
5 514 563
5 589 018
Profit/(loss) for the period
240 215
252 265
127 951
146 832
Total income and expenses recognised in equity
302 241
314 291
283 312
302 193
Net increase / (Decrease) of cash
and cash equivalents
(478 455)
(478 741)
(6 742 060)
(6 742 156)
1.6 Environmental impact and greenhouse gas emission rights
The Group’s global operations follow the laws on environmental protection. The Institute considers
that it substantially complies with these Laws and maintains procedures designed to ensure and
encourage its compliance.
Also, the Group considers that appropriate environmental protection and improvement measures
have been taken, and to minimise, when possible, the environmental impact following rules regarding
this matter. In 2023 and 2022, the Group has not carried out significant environmental investments
and has not considered it necessary to register any provision for environmental risks and charges.
Furthermore, the Institute has not considered any significant contingencies in relation to
environmental protection and improvement, and has not had greenhouse gas emission rights.
17
1.7 Minimum coefficients
1.7.1 Minimum equity ratio
Bank of Spain, on May 22, 2008, issued Circular 3/2008 on identification and control of minimum
equity. The aforesaid Circular is the final development in the field of credit institutions, on the
legislation on equity and supervision on a consolidated basis of the credit institutions issued from Law
36/2007 of 16 November. It amends Act 13/1985, of 25 May, of the investment ratio, equity and
information obligations of financial intermediaries and other financial system that includes the Royal
Decree 216/2008, of February 15 of credit institutions’ equity. This also completes the process of
adapting the legislation of Spanish credit institutions to EU Directives 2006/48/EC of the European
Parliament and the Council of June 14, 2006 concerning the business of credit institutions (recast)
and 2006/49/EC of the European Parliament and the Council of June 14, 2006 on capital adequacy
of investment services companies and credit institutions (recast). The two Directives have been
deeply revised, following the equivalent agreement adopted by the Basel Committee on Banking
Supervision (known as Basel II), the minimum capital requirements due to credit institutions and their
consolidated groups.
Law 10/2014 of 26 June, concerning management, supervision and solvency of credit institutions, has
replaced, from January 1, 2014, the former legal body concerning prudential banking regulation (Law
13/1985, from 25 May, and Circular 3/2008 of the Bank of Spain). Previously, the European Union
moved to its legal system Basel III accords, as of December 2010, by Regulation (EU) No 575/2013
of the European Parliament and of the Council from 26 June on the prudential requirements for credit
institutions and investment services companies, amending Regulation (EU) No 648/2012 and
Directive 2013/36/EU of the European Parliament and of the Council of 26 June, relating to the activity
of credit institutions and the prudential supervision of credit institutions and investment services
companies, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC
as transposed into our system started with Royal Decree-Law 14/2013, of 29 November, on urgent
measures for adaptation of Spanish law with the norms of the European Union supervision and
solvency of credit institutions.
The main purpose of Law 10/2014, of 26 June, was to adapt Spanish law to regulatory changes
imposed on the international stage and the European Union, directly incorporating the provisions of
Regulation (EU) 575/2013 of 26 June (CRR), and making the proper transposition of Directive
2013/36/EU of 26 June (CRD). These Community rules have led to a substantial alteration of the rules
applicable to credit institutions, since aspects such as the supervisory regime, capital requirements
and penalty system has been extensively modified.
The CRR and CRD regulate capital requirements in the European Union and include the
recommendations set out in the Basel III capital regulatory framework or agreement, specifically:
- The CRR, which is directly applicable to Member States, contains prudential requirements for
credit institutions and covers, inter alia, the following:
- The definition of elements of eligible equity, establishing requirements for hybrid
instruments to be included and limiting the eligibility of minority interests.
- The definition of prudential filters and deductions of items in each capital levels. In this
respect, the Regulation includes new deductions compared to Basel II (deferred tax
assets, pension funds) and introduces changes to existing deductions. Nevertheless, it
notes that the Regulation establishes a phase calendar until its final full implementation
between 5 and 10 years.
18
- Establishment of minimum requirements (Pillar I), with three levels of equity: a Common
Equity Tier 1 capital ratio of 4.5%, a Tier 1 capital ratio of 6% and a minimum requirement
total capital ratio of 8%.
- Requirement of credit institutions to calculate a leverage ratio, defined as Tier 1 capital
divided by total exposure unadjusted for risk. The disclosure requirement will be
applicable from 2016 onwards and the final definition was established in 2017 by
supervisors.
- The aim and main purpose of the CRD, which must be transposed into national legislation by
the Member States according to their criteria, is to coordinate national legislation regarding the
access to the activity of credit institutions and investment firms and their governance and
supervisory framework. The CRD includes, inter alia, additional capital requirements to those
established in the CRR, which will be phased in gradually until 2019. Failure to comply will
imply restrictions on the discretionary distributions of profit, specifically:
- A capital conservation buffer and a countercyclical capital buffer, extending the
regulatory framework of Basel III, to mitigate pro-cyclical effects of financial regulation.
All credit institutions must maintain a capital conservation buffer of 2.5% above Common
Equity Tier 1 and an institution-specific countercyclical capital buffer above Common
Equity Tier 1.
- A systemic risk buffer. For global systemically important institutions and other
systemically important institutions to mitigate systemic or macro prudential risks; i.e.,
risks of disruptions in the financial system with the potential to have serious negative
consequences for the financial system and the real economy in a specific Member State.
- In addition, the CRD, within the oversight responsibilities, states that the Competent
Authority may require credit institutions to maintain a larger amount of equity than the
minimum requirements set out in the CRR (Pillar II).
Pursuant to Additional Provision 8
th
of Law 10/2014, of 26 June, on management, supervision
and solvency of credit institutions, the Instituto de Crédito Oficial will apply Titles II (Solvency
of credit institutions), III (Supervision) and IV (Legal penalties) of that Law, except as
determined by regulations, and the provisions regarding duty of confidentiality of information.
From the period 2015, according with Circular 2/2014 of Bank of Spain, capital buffers
established in this standard are applicable. To date, no amount has been established for the
specific countercyclical capital buffer by the Banking Supervisor this year. ICO is not an entity
of global systemic importance (EISM for its initials in Spanish) nor is it considered as a
systemically important entity (EIS for its initials in Spanish).
In 2019, Regulation EU 2019/876, of 20 May, was approved, amending Regulation (EU)
575/2013 (CRR II) of Credit Entities’ solvency. Although the standard will enter into force, in
general, from June 28, 2021, certain provisions entered into force on June 27, 2019 (field of
application, supervision powers, definitions, equity and admissible liabilities and definitions of
the leverage ratio). These provisions did not affect ICO.
In 2020, Regulation EU 2020/873, of 24 June, was approved, amending Regulations EU
575/2013 and EU 2019/876 concerning certain adaptations made in response to the COVID-
19 pandemic (including, among other measures, the extension of transitory provisions in
relation to the effect of the IFRS 9 on provisions, for the purpose of solvency, establishment
of new temporary prudential filters, and advancement of the new treatment for certain
exposures, and application of the support factor to SMEs and Infrastructures). This standard’s
19
provisions have had a scarce impact in ICO.
At December 31, 2023 and 2022, the Group’s computable capital is as follows:
Thousands of Euros
2023
2022
Common Equity Tier 1 (*)
4 749 323
4 897 422
- Capital
4 314 901
4 314 687
- Reserves and prudential filters (*)
434 422
582 735
Tier 2
-
-
- Other reserves (*)
-
-
- Adjustments for general credit risk
-
-
Total computable capital
4 749 323
4 897 422
Total minimum capital (**)
2 710 544
2 478 267
(*) The sum of the reserves used to calculate the Group's eligible capital differs from those recorded in the consolidated balance sheet because the
calculation of eligible capital takes into account adjustments for intangible assets and adjustments for prudential filters.
(**) calculated as 15.16% of risk-weighted assets (RWA), the level of the total capital requirement (OCR) established by the Bank of Spain for the Group
for 2023 (17.05% for 2022)
At December 31, 2023 and 2022, the most important data of the minimal capital of the Group are (in
thousands of Euros):
Thousands of Euros
2023
2022
Tier 1
4 749 323
4 897 422
Risk-weighted assets (RWA)
17 879 576
14 535 290
Tier 1 ratio (%)
26,56%
33,69%
Computable total Capital
4 749 323
4 897 422
Computable total Capital ratio (%)
26,56%
33,69%
Minimum computable capital ratio (%) (*)
15,16%
17,05%
(*) The total minimum capital ratio from December 31 2023, established by Bank of Spain for the ICO Group, is 15.16%, considering
both the requirements established by the Regulation EU 575/2013 (8%), and additional capital needs (4.66%) and the capital buffer
(2.5%)
At December 31, 2023 and 2022, the Group’s computable capital exceeds minimum requirements
required by applicable regulations in 2,038,779 thousand Euros and 2.419.155 thousand Euros,
respectively.
1.7.2 Minimum reserves ratio
The Institute must maintain a minimum level of funds deposited in a central bank of a Euro country to
cover the minimum reserve requirements. At December 31, 2023, this level was 2% of computable
liabilities. On November 24, 2011, Regulation (EU) No 1358/2011 came into effect, requiring 1% for
additional computable liabilities (time deposits of over two years drawable subject to a notice period
of more than two years, sales under repurchase agreements and securities other than shares with
maturities of over two years). This amendment was applied following the maintenance period that
started on January 18, 2012.
At December 2023 and 2022, and throughout financial years of 2023 and 2022, ICO complied with
20
minimum ratios required by applicable Spanish regulations.
1.7.3 Capital management
The Group considers as capital, for management purposes, Tier 1 and Tier 2 computable regulated
by the legislation which is applicable to it for solvency purposes (EU Regulation 575/2013).
In this sense, regulatory capital requirements are incorporated directly in the management, thereof in
order to maintain at all times a solvency ratio not below the minimum established for the entity by
Bank of Spain. This objective is met through a proper capital planning.
1.8 Post-balance sheet events
The Council of Ministers of February 27, 2024 has approved an agreement establishing the general
conditions for the implementation of five facilities under the loans of the addendum to the Recovery
Plan, amounting to 40,000 million Euros, and instructing Instituto de Crédito Oficial (Official Credit
Institute) to manage them.
Specifically, the Institute will participate in the following initiatives:
• ICO-Green Facility of 22,000 million Euros
• ICO-Empresas y Emprendedores Facility, of 8,150 million Euros (7,000 million to boost the
business fabric and 1,000 million to finance the tourism sector towards a more sustainable
model)
• 4 billion Next Tech Fund (already existing fund, but with an increased amount in MRR)
• Audiovisual Hub Facility of 1,712 million Euros, and
• Facility for the Promotion of Social Rental Housing of 4,000 million Euros.
This launches the second phase of the Recovery Plan, which will enable the transformation and
modernisation process of the Spanish productive fabric and economy to be completed. The five
approved facilities will be used to finance investment projects that favour the dual green and digital
transition of companies, thereby strengthening their competitiveness. Specific facilities will also be
implemented to boost the audiovisual sector and disruptive technologies, as well as to increase the
stock of public social housing for rent.
On the other hand, on February 13, 2024, the Council of Ministers approved an agreement
establishing the conditions for the Ministry of Housing and Urban Agenda (MIVAU) to sign with the
ICO a line of 2,500 million Euros in guarantees for the purchase of first homes for young people under
35 years of age and families with dependent minors. The guarantees will be managed by ICO on
behalf of MIVAU under the terms established in the Agreement to be formalised between both parties
for a period of up to 15 years.
In accordance with Additional Provision of Law 24/2001, of 27 December, on Tax, Administrative and
Social Security measures, amended by aforementioned Law 42/2006, the amounts recovered
following the repayment by Central Government of the debts incurred with ICO as a result of certain
credit and guarantee facilities granted by the former Entidades Oficiales de Crédito and the Institute
itself, will form part of the Institute's equity. The amount estimated for 2023 totals 207 thousand Euros,
which will be registered in 2024.
No significant events other than those described in the previous paragraphs have occurred since the
21
end of the reporting period (December 31, 2023) until the date these consolidated annual accounts
were issued (March 26, 2024).
1.9 Information per business segment
The Group’s activity is the granting of credit lines and direct loans. Therefore, in accordance with
relevant legislation, it is considered that the information regarding the segmentation of operations into
different lines of business at ICO is not relevant.
In addition, the Group develops its activity both inside and outside the Spanish territory. All operations
are granted to fund Spanish interests.
1.10 ‘ICO Direct’ lending activities
On June 2010, ICO launched a new business segment known as “ICO Direct”, designed to provide
financing to self-employed individuals, SMEs, and non-profit entities residing in Spain (which have
been operating for more than one year) in order to make new investments in machinery, furniture, IT
equipment and buildings. This business segment complements ICO’s normal lending activities
conducted through mediation lines to credit institutions and represents a broadening of the finance
channels aimed at SMEs and self-employed individuals. ICO Direct line was renewed for 2011 and
2012, finishing at June 2012.
Operations derived from ICO Direct activities were formally processed and administered by Banco
Santander (BS) and Banco Bilbao Vizcaya Argentaria (BBVA). These credit institutions were awarded
in the public tender held by ICO for this purpose.
The balance at December 31, 2023 of total net assets was nil (35 thousand Euros at December 31,
2022). Net results generated in 2023 have amounted to 4,346 thousand Euros (3,816 thousand Euros
in 2022).
1.11 ICO local corporation lending activity in 2011
The 2011 ICO-Local Corporation Facility started as a consequence of Royal Decree-Law designed to
foster the stability of public accounts and social protection approved in July 2011 by the Spanish
Council of Ministers. Its aim was to alleviate the problems of many self-employed professionals and
small businesses that, in light of the struggling economy, were suffering from major problems settling
their charging rights on supplies, works and services provided to local entities.
This facility was designed to provide local corporations (local and municipal governments) with
liquidity to settle their pending invoices until April 30, 2011. It was mostly designed to help them repay
debts with self-employed individuals and SMEs based on the age of certifications or documents.
ICO-Local Corporation Facility was in operation from July 2011 to November 2011. During this time,
the facility enabled 1,029 local, regional and inter-island town councils through Spain to settle 222,975
outstanding invoices, accounting a total amount of 967 million Euros for supplies, constructions and
services provided by 38,338 self-employed individuals and SMEs during 2011. The formalisation and
administration of the 2011 ICO-Local Corporation Facility operation is carried out through several
EECC added to the project.
At December 31, 2023, the balance of these assets (classified as doubtful assets) has been of 28
thousand Euros (2,370 thousand Euros at December 31, 2022).
This line is guaranteed to the Institute with the Participation in State Income (PTE for its initials in
Spanish) of the borrowing EELL. The reduction in the outstanding balance of this line, from the
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beginning of it and until December 31, 2023, under the PTE, is 65.31 million Euros (62.97 million
Euros at December 31, 2022). Out of the 1,029 hosted entities to December 31, 2022, a total of 409
entities have had to resort to the PTE. At December 31, 2023, PTE deductions are still being claimed
to 4 EELL, for an outstanding amount of 28 thousand Euros.
2. ACCOUNTING PRINCIPLES, POLICIES AND VALUATION METHODS APPLIED
During the development of the Group’s consolidated annual accounts for the year ended at December
31, 2023, the following accounting principles, policies and valuation methods have been applied:
a) Going concern principle
In preparing the financial statements, it has been considered that the management of the Institute will
continue in a foreseeable future. Therefore, the application of accounting standards is not designed
to determine the net asset value for the purpose of global or partial transfer in the event of liquidation.
b) Accruals principle
The present annual accounts, except in relation to the statements of cash flows, have been elaborated
based on the current flow of goods and services, regardless of their date of payment or collection.
c) Other general principles
The annual accounts have been prepared under the historical cost approach, but modified due to the
revaluation, if any, of land and buildings (only at January 1, 2004) (Note 13), available for sale financial
assets and financial assets and liabilities (including derivatives) at fair value.
2.1 Shareholdings
2.1.1 Group Companies
Subsidiaries are those over which the Institute has control. It is understood that an entity controls an
investee when it is exposed, or has rights, to variable returns about its involvement with the investee
and has the ability to affect those returns through the power exercised over the investee.
Consideration as subsidiaries requires:
- Power: An investor has power over an investee when the investor has existing rights that give
it the current ability to direct the relevant activities; i.e., the activities that significantly affect the
investee’s returns;
- Returns: An investor is exposed, or has rights, to variable returns from its involvement with the
investee when the investor’s returns from its involvement have the potential to vary as a result
of the investee’s performance. The investor’s returns can be only positive, only negative or
both positive and negative;
- Link between power and returns: An investor controls an investee if the investor not only has
power over the investee and exposure or rights to variable returns from its involvement with
the investee, but also has the ability to use its power to affect the investor’s returns from its
involvement with the investee.
These subsidiaries’ annual accounts are consolidated with the Institute’s in application of the global
integration method, as defined on the regulation. Consequently, all balances derived from operations
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between significant companies consolidated through this method have been eliminated in the
consolidation process. The Institute, the Group’s parent company, represents 99% of total
consolidated assets.
Furthermore, shareholding by third parties, if any, in:
• The Group’s equity is presented on caption “Minority shareholders” of the consolidated
balance sheet, there not being any balance at December 31, 2023 and 2022.
• Consolidated results of the year are presented on caption “Results attributed to minority
shareholders” of the consolidated income statement, there not being any balance at December
31, 2023 and 2022.
The consolidation of results generated by subsidiaries acquired on a year only takes into
account those related to the period comprised from the acquisition date and the year’s closing
date.
Annex I provides relevant information on these entities, all of which close their financial year
at December 31.
2.1.2 Associates
Associates are entities over which the Institute holds significant influence, although they are not part
of a decision unit together with the Institute nor are they under joint control. Normally, significant
influence generally accompanies a direct or indirect shareholding of 20% or more of the voting rights.
Shareholdings in associates are presented in these consolidated annual accounts under the heading
“Investments in subsidiaries, joint ventures and associates - Associates” in the accompanying
consolidated balance sheet and are valued at acquisition costs, adjusted impairment that they may
have undergone.
Results generated from operations between the associate and Group Companies are written off from
the percentage represented by the Group’s shareholding on the associate.
Results obtained in the year by the associate, after the abovementioned write-off, increase or reduce,
as applicable, the value of the investment on the consolidated annual accounts. The amount of these
results is registered on the caption of “Profit/(loss) in entities valued through the equity method” of the
consolidated income statement (Note 27).
Variations in the associate’s valuation adjustments, following the acquisition date, are registered as
increase or decrease of the investment value. The amount of these variations has been registered on
caption “Other accumulated comprehensive income” as valuation adjustments of the consolidated
equity.
Annex I provides relevant information on these entities.
2.2 Financial instruments
2.2.1 Initial recognition of financial instruments
Financial instruments are initially recognised in the balance sheet when the Group becomes part of
the relevant contract, in accordance with the terms of that contract. Specifically, debt instruments such
as loans and deposits in cash are recognised as from the date on which, the legal right to receive or
the legal obligation to pay the cash is generated, respectively. In general, financial derivatives are
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recognised on the date they have been contracted.
Purchases and sales of financial assets arranged through conventional contracts, understood as
those contracts under the parties’ reciprocal obligations must be fulfilled with a timeframe established
by regulations or market conventions and which may not be settled by differences, such as stock
market contracts or currency forwards, are accounted for from the date on which the benefits, risks,
rights and duties inherent in all ownership are transferred to the acquirer. Depending on the type of
financial asset, purchased or sold, this may be the date of the contract or the date of settlement or
delivery. Specifically, operations effected in the foreign exchange spot market are recognised at the
settlement date, operations affected using equity instruments traded in Spanish securities markets
are recorded at the contract date and operations affected using debt instruments traded in Spanish
securities markets are recognised at the settlement date.
2.2.2 Transfers and disposal of financial instruments
Transfers of financial instruments are recorded taking into account the way in which risks and benefits
associated with the transferred financial instruments are transferred, based on the following criteria:
- If risks and benefits are substantially transferred to third parties, as in unconditional sales,
sales and repurchase at fair value at the date of the acquisition, sales of financial assets with
a purchase option or sales gained issued deeply out of money, the securitisation of assets in
which the grantor retains no subordinate financing or grant any credit enhancement to the new
owners, etc., the transferred financial instrument is removed off from the balance sheet,
recognising both any right or obligation retained or created as a result of the transfer.
- If risks and benefits associated with the transferred financial instrument are retained, such as
sales of financial assets with repurchase agreements for a fixed price or the sale price plus
interest, the loan contracts of values in which the borrower must return the same or similar
assets, and so on., the transferred financial instrument is not removed off from the balance
sheet and continues being measured with the same criteria used before the transfer. However,
the associated financial liability by an equal amount to the consideration received is
recognised, which is then valued at amortised cost, the transferred financial asset income, but
not recognised and the new financial liability costs.
- If neither the risks and benefits associated with the transferred financial instrument are
transferred nor substantially retained, such as sales of financial assets with a purchase option
bought or sold that are neither inside nor outside money, securitisations in which grantor
assumes a subordinated financing or other credit enhancements for a share of transferred
assets, and so on, distinction is made between:
- If the Entity does not retain control over the transferred financial instrument, in which case
it is removed off from the balance sheet and recognises any right or obligation retained or
created as a result of the transfer.
- If the Entity retains control over the transferred financial instrument, in which case it
continues recognising it on the balance sheet at an amount equal to its exposure to value
fluctuations that can experience and a financial liability associated to an amount equal to
the consideration received is recognised. Such liabilities are subsequently valued at
amortised cost, unless it meets the requirements to be classified as financial liabilities at
fair value through profit or loss. To calculate the amount of financial liabilities, the amount
of its financial instruments (such as asset-backed securities and loans) that constitutes
funding for the entity to which financial assets have been transferred will be deducted, in
the exact amount as these financial instruments finance transferred assets specifically.
The net amount between transferred assets and associated liabilities will be the amortised
25
cost of the rights and obligations retained, if the transferred asset is measured at
amortised cost, or fair value of the rights and obligations retained, if the transferred asset
is measured at its fair value.
Therefore, financial assets are only removed from the balance sheet when the generated cash
flows have been extinguished or when the implicit risks and benefits have been transferred to
third parties.
Similarly, financial liabilities are only removed off the balance sheet when generated
obligations have been extinguished or when they are purchased with the purpose of being
cancelled or repositioned again.
2.2.3 Fair value and amortised cost of financial instruments
Financial assets
The fair value of a financial instrument at a given date is understood as the amount at which it may
be purchased or sold at that same date between some informed parties, in an arm’s length operation.
The most objective and common reference value for a financial instrument’s fair value is the price that
would be paid in an organised, transparent and deep market (“quoted price” or “market price”).
In the absence of a market price for a specific financial instrument, its fair value is estimated on the
basis of recent operations involving similar instruments or, if failing this, using valuation techniques
that have been accepted from the international financial community, taking into account the specific
features of the instrument to be measured and, above all, the different types of associated risks.
Specifically, the fair value of a held-for-trading derivative financial instrument traded in organised,
transparent and deep markets is the same as their daily market price. If, in exceptional circumstances,
the price cannot be established on a given date, they are measured using similar methods to those
applied to derivatives not traded in organised markets.
The fair value of derivatives not traded in organised markets, or traded in organised markets that are
not deep or transparent, is equal to the sum of the future cash flows generated by the instrument,
discounted at the measurement date (“present value” or “theoretical close”), employing valuation
techniques accepted by the financial markets: “net present value” (NPV), option pricing models, etc.
Amortised cost is the acquisition cost of a financial asset or adjusted liability (upward or downward)
for capital and interest repayments and, when applicable, for the (higher or lower) portion (recognised
in the income statement applying the effective interest method) of the difference between the initial
amount and the repayment value of the financial instruments. The amortised cost of financial assets
also includes impairment adjustments that may have occurred.
The effective interest rate is the discount rate that brings the initial value of a financial instrument
exactly into line with total estimated cash flows through its residual life. In the case of fixed-income
financial instruments, the effective interest rate is equal to the contractual rate defined on acquisition,
adjusted for commissions and operation costs that, in accordance with the provisions of Bank of Spain
Circular 4/2017, must be included in the calculation of the effective interest rate The effective interest
rate for variable-rate financial instruments is estimated in the same way as for fixed-income
operations, and is recalculated at each interest review date stated in the contract, taking into
consideration changes in the operation’s future cash flows.
Other entities’ shareholdings, whose fair value cannot be determined objectively and financial
derivatives that have this instrument as its underlying assets and are settled by their delivery, are kept
at cost, adjusted, where appropriate, by impairment losses experienced.
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Variations in financial assets amounts are registered, in general, with a counterpart in the income
statement, differentiating the ones that are caused by the accrual of interest and similar items that are
recorded in the heading of “Interest and similar income”, and those corresponding to other causes
that are recorded by the net amount under the heading of “Gains or losses on financial assets and
liabilities” of the income statement.
However, changes in instruments’ value included under the portfolio of financial assets valued at fair
value through other comprehensive income are temporarily recorded on caption “Other accumulated
comprehensive income”, unless they come from exchange differences. Amounts on caption “Other
accumulated comprehensive income” for changes in the fair value of these financial instruments
remain part of net equity until they are removed from balance sheet’s assets where they are
originated, moment when they are registered against an income statement, unless they are financial
instruments which valuation changes are never reclassified to the income statement.
Also, value changes of the items included under the heading “Non-current assets held for sale” are
recorded under “Other accumulated comprehensive income” as valuation adjustments in consolidated
equity.
Related to financial instruments, valuations at fair value reflected in the annual accounts are classified
using the following fair value ranking:
i) Level I: reasonable values are obtained from quoted prices (not adjusted) in active markets
for the same instrument.
ii) Level II: fair values are obtained from valuation techniques in active markets for similar
instruments, recent operation prices or expected cash flows, or other valuation techniques in
which all significant inputs are based, directly or indirectly, on observable market data.
iii) Level III: fair values are obtained from valuation techniques in which some significant inputs
are not based on observable market data.
In financial assets designated as hedged items and hedging accounting, valuation differences are
recorded taking into account the following criteria:
- In fair value hedges, the differences occurring in hedging items and in hedged items, in relation
to the type of hedged risk are recognised directly in income statement.
- Differences in valuation related to inefficiency of cash flows hedging and net foreign
investments are sent directly to the income statement.
- In cash flow hedges, the valuation differences arising on the effective hedging of the hedging
items are temporarily registered under the heading of ‘Other accumulated comprehensive
income’ as adjustment in net equity.
- In net foreign investments hedging, valuation differences arising on the effective hedging of
the hedging items are temporarily registered under the heading of ‘Other accumulated
comprehensive income’ as adjustment in net equity.
In the last two cases, valuation differences are not included in results until hedged item’s gains or
losses are recorded in the income statement or until the hedged item’s expiration date.
In interest rate risk’s fair value hedges of a financial instruments portfolio, gains or losses that arise
when assessing the hedging instruments are recognised directly in the income statement, whereas
27
the gains or losses in the amount covered fair value changes, regarding the hedged risk, are
recognised in “Other accumulated comprehensive income” as adjustment in financial assets by macro
hedging.
In interest rate risk cash flows hedging of a financial instruments portfolio, the effective part of the
hedging instrument’s value fluctuation is recorded temporarily in “Other accumulated comprehensive
income” as adjustment in net equity until expected operations occur, being then recorded in the
income statement. The ineffective portion of the hedging derivative’s value fluctuation is directly
registered on the income statement.
Financial liabilities
Financial liabilities are recorded at amortised cost, as defined for financial assets in the note above,
except in the following cases:
- Financial liabilities included in captions ‘Financial liabilities held for trading’ and ‘Financial
liabilities at fair value through profit or loss’, are recorded at fair value, as defined for financial
assets in the note above. Financial liabilities covered by fair value hedging operations are
adjusted, being registered those fair value variations in relation to the hedged risk covered by
the hedge operation.
- Financial derivatives whose underlying assets are equity instruments whose fair value cannot
be determined in a sufficiently objective and be settled by delivery of these contracts are
valued at cost.
Financial liabilities amount’s variations are recorded, in general, offset by the income statement,
differentiating between those that are caused by interest accrual and similar items that are recorded
in the heading of “Interest and similar income”, and those corresponding to other causes, which are
recorded under the heading ‘Gains or losses on financial assets and liabilities measured at fair value
through profit or loss’ of the consolidated income statement.
Financial liabilities designated as hedged items and hedging accounting valuation differences, are
recorded taking into account the above criteria for financial assets, included in the previous note.
2.2.4 Classification and valuation of financial assets and liabilities
Financial instruments are classified into the following categories in the Institute’s balance sheet:
- Central bank and credit institutions deposits, which are cash balances and amounts held in
Bank of Spain, other central banks and other credit institutions;
- Financial assets and liabilities at fair value through profit or loss: this category is made up with
financial instruments classified as trading portfolio and other financial assets and liabilities
classified at fair value through profit or loss:
• Financial assets are those financial assets included in the trading portfolio acquired in
order to be realised in the short term or which form part of a portfolio of identified financial
instruments for which there is evidence of recent actions taken to obtain short-term
gains. Also, derivative financial instruments not designated as hedge instruments are
considered as part of this category, including instruments segregated from hybrid
financial instruments in accordance with applicable accounting rules.
• Financial liabilities are those liabilities included in the trading portfolio issued in order to
be repurchased in the near future or that form part of a portfolio of financial instruments
28
identified or jointly managed for which there is evidence of recent actions to obtain short-
term gains, short positions in securities arising from sales of assets acquired under non-
optional repurchase agreements and loans of securities, and derivative financial
instruments not denominated as hedge instruments, including segregated from hybrid
financial instruments. The fact that a financial liability is used to finance trading assets
does not entail its own inclusion in this category.
• Other financial assets or liabilities at fair value through profit or loss are the following:
- Financial assets that, not being included in the Trading portfolio, are considered
as hybrid financial assets and are valued at fair value, and those that are jointly
managed with Liabilities under insurance contracts valued at their fair value or with
financial derivatives whose purpose and effect is to reduce its exposure to
fluctuations in fair value or which are jointly managed with financial liabilities and
derivatives in order to reduce the overall exposure to interest rate risk.
- Financial liabilities designated at its initial recognition by the entity or when
recognising them more relevant information is obtained because:
- With it, inconsistencies in the recognition or appreciation arising from the
asset or liabilities valuation or recognising the gains and losses will be
deleted or significantly reduced, using different criteria.
- A group of financial liabilities or both financial assets and liabilities is
managed and their performance is evaluated based on their fair value,
according to a risk management or investment information strategy.
Documented information about groups is issued also on the basis of the fair
value to the key Management staff.
- Assets valued at amortised cost. This category includes the following:
• Debt securities with fixed maturities and cash flows of a determined or determinable
amount. Debt securities included in this category are initially valued at fair value, adjusted
for operation costs directly attributable to the acquisition of the financial asset, which are
recognised in the income statement using the effective interest method, defined in
applicable accounting legislation as of Bank of Spain, 4/2020. They are subsequently
valuated at amortised cost, based on the effective interest ratios.
• Loans and receivables: this category includes financing provided to third parties arising
from the ordinary credit and loan activities carried out by the Institute and debts incurred
by asset buyers and by service users. It also includes financial lease operations in which
entities act as lessors.
Financial assets included in this category are initially carried at fair value, adjusted for
commissions and operation costs directly attributable to the acquisition of the financial asset
and which, under applicable accounting legislation as of Bank of Spain, 4/2020, must be
recognised in the income statement using the effective interest rate method. Once these
assets are acquired, they are valued at amortised cost.
Assets acquired at discount are registered for the amount paid and the difference between the
repayment value and that cash amount is recognised as a financial income, applying the
effective interest rate method until maturity.
The accrued interest for assets included in this category, calculated using the effective interest
29
rate method, is recognised in the caption “Interest and similar income” in the income statement.
Exchange differences on securities denominated in foreign currency, other than the euro
included in this portfolio, are accounted as it is mentioned in Note 2.4. Possible impairment
losses on these securities are recorded as indicated in Note 2.7. Debt securities included in
fair-value hedging are recorded as mentioned in Note 2.3.
- Financial assets at fair value through other comprehensive income: this category includes debt
securities not classified as instruments at amortised cost or at fair value through profit or loss,
owned by the Institute, as well as equity instruments owned by the Institute corresponding to
entities which are not subsidiaries, joint ventures or associated entities, which have not been
classified as at fair value through profit or loss.
Instruments included in this category are initially measured at fair value, adjusted for operation
costs directly related to the acquisition of the financial asset, which are recognised in the
income statement using the effective interest rate method defined in applicable accounting
legislation as of Bank of Spain, 4/2020, to maturity, unless the financial assets have no fixed
maturities. In such cases, they are taken to the income statement, when they become impaired
or are written off the balance sheet. Subsequently, financial assets included in this category
are valued at fair value.
Nonetheless, equity instruments whose fair value cannot be determined in a sufficiently
objective way are valued at cost in these annual accounts, net for impairment calculated as
explained in Note 2.7.
Products corresponding to interests or dividends accrued from these financial assets are
registered with counterpart on captions “Interests and similar income” (calculated using the
effective interest rate method) and “Dividends income” in the income statement, respectively.
Impairment losses on these instruments are recorded as mentioned in Note 2.7. Exchange
differences on financial assets denominated in foreign currency other than the euro are
accounted as mentioned in Note 2.4. Changes in fair value of financial assets covered by fair-
value hedges are stated as mentioned in Note 2.3.
The remaining changes in the fair value of financial assets from acquisition are registered with
counterpart in the Institute’s equity under caption “Other accumulated comprehensive income”
as valuation adjustments, until the financial asset is written off, moment at which the balance
registered on such caption is booked on the income statement under caption “Profit and loss
for write-off of financial assets and liabilities valued at fair value through profit or loss”.
- Financial liabilities at amortised cost: This category of financial instruments includes financial
liabilities that are not included in any of the previous categories.
Financial liabilities included in this category are initially carried at fair value, adjusted for
operation costs directly attributable to the issue of the financial liability, which will be
recognised in the income statement using the effective interest rate method, defined in
applicable accounting legislation (Bank of Spain Circular 4/2017) to maturity. Subsequently
they are measured at amortised cost, calculated by applying the effective interest rate method
defined in applicable accounting legislation (Bank of Spain Circular 4/2017).
The interest accrued on these assets, calculated using the effective interest rate method, is
recognised in the caption “Interest and similar charges” in the income statement. Exchange
differences on securities denominated in foreign currency, other than the euro included in this
portfolio, are accounted as mentioned in Note 2.4. Financial liabilities included in fair-value
hedging are recorded as mentioned in Note 2.3.
30
Nevertheless, those financial instruments that must be classified as non-current assets held for sale,
in accordance with the provisions of Rule Thirty-Four of Circular 4/2017, Bank of Spain, are included
in the annual accounts as explained in Note 2.16.
The classification of financial instruments in these categories will be based in two elements: (i) the
entity’s business model to manage financial assets; (ii) the characteristics of financial assets’
contractual cash flows:
- A financial asset is classified on the portfolio of financial assets at amortised cost when
two conditions are met: (i) it is managed with a business model which objective is to hold
financial assets to perceive contractual cash flows; and (ii) contractual conditions lead to
cash flows at specified dates, which always are payments of principal and interests on
the amount of the outstanding principal;
- A financial asset is classified on the portfolio of financial assets at fair value through other
comprehensive income when the two following conditions are met: (i) it is managed with
a business model which objective combines the perception of the financial assets’
contractual cash flows and the sale; (ii) contractual conditions lead to cash flows at
specified dates, which always are payments of principal and interests on the amount of
the outstanding principal;
- A financial asset is classified on the portfolio of financial assets held for trading or financial
assets obligatorily at fair value through profit or loss, as long as, due to the entity’s
business model for their management or to the characteristics of its contractual cash
flows, it cannot be classified in any of the portfolios above.
Nonetheless, the entity shall opt, at initial recognition and in an irrevocable manner, for
including on the portfolio of financial assets at fair value through other comprehensive
income investments in equity instruments which should not be classified as held for
trading and which would be classified as financial assets obligatorily at fair value through
profit or loss. This option will be exercised on an instrument basis.
Also, the entity shall opt, at initial recognition and in an irrevocable manner, for
designating any financial asset at fair value through profit or loss if thus valuation or
recognition incoherencies are eliminated or significantly reduced (also called «accounting
asymmetry») which would otherwise derive from the valuation of assets or liabilities, or
recognition of profit or loss, on different bases. When there are accounting asymmetries,
this option shall be exercised regardless of the entity’s business model for its
management and the characteristics of the contractual cash flows.
Additionally, and regardless of the above, the entity shall opt, at initial recognition or
subsequently, for designating any financial asset as belonging to the portfolio of financial
assets at fair value through profit or loss, as long as requirements established on Circular
4/2017 are met.
Reclassifications between financial instruments portfolios are made exclusively, according to the
following assumptions:
o When an entity changes its business model for the management of financial assets, it will
reclassify all financial assets according to the following sections. Such reclassification will be
prospectively performed from the reclassification date, not requiring a restatement of
previously recognised profit, loss or interests. In general, changes in the business model are
rare.
31
o If the entity reclassifies a debt instrument from the portfolio of amortised cost into fair value
through profit or loss, the entity must estimate its fair value at reclassification date. Any profit
or loss generated for the difference between the previous amortised cost and the fair value
will be recognised on the income statement. If the entity reclassifies a debt instrument from
the portfolio of fair value through profit or loss into amortised cost, the asset’s fair value at
reclassification date will be its new gross carrying amount.
o If the entity reclassifies a debt instrument from the portfolio of amortised cost into fair value
through other comprehensive income, the entity must estimate its fair value at reclassification
date. Any loss or profit generated for differences between the prior amortised cost and the
fair value will be recognised in other comprehensive income. The effective interest rate and
the estimate of expected credit losses will not be adjusted as a consequence of the
reclassification.
o If a debt instrument is reclassified from the portfolio of fair value through other comprehensive
income into amortised cost, the financial asset will be reclassified at the fair value at
reclassification date. The accumulated profit or loss at reclassification date in other
accumulated comprehensive income of equity will be cancelled using as counterpart the
asset’s carrying amount at reclassification date. Thus, the debt instrument will be valued at
reclassification date as if it had been valued at amortised cost. The effective interest rate and
the estimate of expected credit losses will not be adjusted as a result of the reclassification.
o If the entity reclassifies a debt instrument from the portfolio of fair value through profit or loss
to fair value through other comprehensive income, the financial asset will continue being
valued at fair value, without modification of the registration of previously registered value
changes.
o If the entity reclassifies a debt instrument from the portfolio of fair value through other
comprehensive income into fair value through profit or loss, the financial asset will continue
being valued at fair value. The profit or loss previously accumulated in «other accumulated
comprehensive income» of equity will be transferred to profit or loss of the period at
reclassification date.
o When the investment in a subsidiary, joint venture or associate is no longer classified as
such, the retained investment, if any, will be measured at its fair value at reclassification date,
recognising all profits or losses generated for the difference between its carrying amount
prior to the reclassification and such fair value in profit or loss or in other comprehensive
income, as applicable, based on the subsequent valuation of the retained investment.
o The investment in an entity prior to its qualification as subsidiary, joint venture or associate
will be valued at fair value until the date when control, joint control or significant influence is
obtained. At this last date, the entity must estimate the fair value of the prior investment,
recognising any profit or loss generated for the difference between its carrying amount prior
to the reclassification and such fair value, in profit or loss or in other comprehensive income,
as applicable. Where applicable, the accumulated profit or loss in other accumulated
comprehensive income of equity will be maintained until the investment is written off from
the balance sheet, moment at which it will be reclassified into an item of reserves.
o The entity will not reclassify any financial liability.
o For the purpose of sections above, changes derived from the following circumstances are
not considered as reclassifications:
32
• When an element that previously was a designated and efficient hedging
instrument in a cash flow hedging or net investment hedging in a foreign business
ceases complying with requirements to be considered as such.
• When an element becomes a designated and efficient hedging instrument in a
cash flow hedging or net investment hedging in a foreign business.
• When there are changes in the valuation of financial instruments because they are
designated, or cease being designated, at fair value through profit or loss.
2.3 Financial derivatives
Financial derivatives are instruments that provide a loss or gain, and allow, under certain conditions,
the compensation of the totality or part of the credit and / or market risks associated to operations and
balances, using interest rate and certain rates, individual securities prices, exchange rate cross-
currency or other similar references as underlying assets. The Institute uses financial derivatives
traded in bilateral organised or negotiated markets being the counterpart out of organised markets
(OTC).
The Group uses financial derivatives as part of its strategy to reduce its exposure to interest rate,
foreign and market exchange rate, among others. When these operations meet certain requirements
of the Rules Thirty-first and thirty-second of Circular 4/2017, Bank of Spain such operations are
considered as “hedging”.
When the Group designates an operation as a hedge, it does so from the initial moment of the
operations or the instruments included in those hedges, that hedge being appropriately documented.
When documenting these hedging operations, the instrument or instruments hedged and hedging
instrument or instruments are properly identified together with the nature of the risk which is intended
to be covered and the criteria or methods followed by the Group to measure the efficiency of the
hedge over its life, taking into account the risk that it must cover.
The Group only applies hedge accounting for hedges that are considered highly effective over their
entire lives. A Hedge is considered highly effective if during the envisaged term any changes in fair
value or cash flows attributed to the risk covered in the hedging of the financial instrument or
instruments hedged, are virtually fully offset by the changes in fair value or cash flows, as appropriate,
of the hedging instrument or instruments.
In order to measure the efficiency of hedging defined as such, the Group analyses whether from the
beginning until the end of the defined hedging period, changes in fair value or cash flows of the hedged
item, which may be attributed to the hedged risk may prospectively, be expected to be offset almost
completely by changes in fair value or cash flows, as appropriate, of the hedging instrument or
instruments and that retrospectively the results of the hedge have fluctuated in a measurement range
of 80% to 125% with regard to the results of the hedged item.
Hedging operations carried out by the Group are classified into the following categories:
- Fair-value hedges: They cover the exposure to changes in the fair value of financial assets
and liabilities or firm commitments, or an identified portion of these assets, liabilities or
commitments, attributable to a specific risk, provided that they affect the consolidated income
statement.
- Cash-flow hedges: they cover changes in cash-flow that are attributable to a specific risk
associated with a financial asset or liability or a highly-probable planned operation, which may
affect the consolidated income statement.
33
Measurement differences are recorded in accordance with the following criteria, when referring
specifically to financial instruments designated as hedged components and book hedges:
- Fair-value hedges: They cover the exposure to changes in the fair value of financial assets
and liabilities or firm commitments, or an identified portion of these assets, liabilities or
commitments, attributable to a specific risk, provided that they affect the consolidated income
statement.
- Cash flows hedges: valuation differences arisen on the efficient hedging portion of hedging
elements are transitorily registered on caption “Other accumulated comprehensive income” as
valuation adjustments for cash flows hedged. Hedged financial instruments in this kind of
hedging operations are registered according to criteria explained on Note 2.2 without any
modification for the fact of being considered as such hedged instruments.
In the last case, measurement differences are not recognised as results until the gains or losses on
the hedged item are recorded in the income statement, or until maturity.
Differences in the valuation of the hedge instrument, corresponding to the inefficient part of the
hedging cash flow operations, are directly registered as “Gains or losses resulting from hedging
accounting, net” in the accompanying consolidated income statement.
The Group interrupts hedge accounting when the hedging instrument expires or is sold, when a hedge
no longer meets the criteria for hedge accounting or when the operation ceases to be classed as a
hedge.
Where fair-value hedge accounting is interrupted as stated in the preceding paragraph, in the case of
hedged items carried at amortised cost, the value adjustments made for hedge accounting purposes
are recognised in the income statement until the maturity date of the hedged items, applying the
effective interest rate as recalculated on the interruption date.
In the situations in which a cash-flow hedge operation is interrupted, the accumulated gain or loss
from the hedge is registered under the heading “Other accumulated comprehensive income” in the
balance sheet and it will remain under this heading until the planned hedge operation takes place,
time at which it will be taken to the consolidated income statement, or the cost of acquiring the asset
or liability to be recorded will be adjusted, in the event that the hedged component is a planned
operation that culminates with the recording of a financial asset or liability. In the event of planned
operations, when expected not to take place, the entry made under “Other accumulated
comprehensive income” relating to that operation is immediately recognised in the income statement.
2.4 Foreign currency operations and functional currency
The Group’s functional currency is the Euro. Therefore, all balances and operations denominated in
currencies other than the euro are considered denominated in foreign currency.
Set out below is the equivalent value of financial assets and liabilities denominated in foreign currency
held by ICO, as Group’s parent company, at December 31, 2023 and 2022 (in thousands of Euros):
34
2023
2022
Assets
Liabilities
Assets
Liabilities
Pounds Sterling
304 035
275 323
380 614
529 340
US Dollars
2 678 621
9 856 669
2 406 034
7 228 720
Swiss Francs
-
274 439
8
258 079
Japanese Yens
666
32 110
741
35 687
Other currencies
374 671
44 716
435 683
61 838
3 357 993
10 483 257
3 223 080
8 113 664
The equivalent value in Euros of financial assets and liabilities denominated in foreign currency (in
thousands of Euros), classified by nature, recorded by the Institute, at December 31, 2023 and 2022
is as follows:
2023
2022
Assets
Liabilities
Assets
Liabilities
1 542 287
1 284 125
Loans to Credit Institutions
1 803 731
1 924 671
Loans to Customers
11 975
14 284
Other financial assets
3 460 183
2 865 741
Deposits in Credit Institutions
7 022 652
5 247 278
Debt securities issued
422
645
3 357 993
10 483 257
3 223 080
8 113 664
When initially recognised, debtor and creditor balances accounted in foreign currency are converted
to the functional currency using the spot exchange rate at the date of recognition, understood as the
exchange rate for an immediate delivery. After initial recognition, the following rules are applied to
translate balances registered in foreign currency to the functional currency:
i) Monetary assets and liabilities are translated at the year-end exchange rate, understood as
the average spot exchange rate at the date to which the annual accounts refer.
ii) Non-monetary items valued at historic cost are translated at the exchange rate on the date of
acquisition.
iii) Non-monetary items measured at fair value are converted to the exchange rate on the date its
fair value is determined.
iv) Income and expenses are converted by applying the exchange rate existing on the operation
date. Nonetheless, the average exchange rate for the period is used for all operations carried
out in that period, unless there have been significant fluctuations. Depreciation/ amortisation
are translated at the exchange rate applied to the relevant asset.
Exchange differences arising from conversion of debtor and creditor balances denominated in foreign
currency are generally recorded in the consolidated income statement. Nonetheless, in the case of
exchange differences that arise from non-monetary items measured at fair value, for which the fair-
value adjustment is recorded under “Other accumulated comprehensive income”, the component of
the exchange rate relating to the revaluation of the non-monetary element is broken down.
Exchange rates used by the Group to convert balances denominated in the main foreign currencies
in which it operates, for the purpose of the elaboration of the consolidated annual accounts, are the
market rates at December 31, 2023 and 2022 published by the European Central Bank at each of
those dates.
The net amount of exchange differences arising from the conversion of receivables and payables
denominated in foreign currency amounts to losses of 3,744 thousand Euros at December 31, 2023
(profit of 4,038 thousand Euros losses at December 31, 2022) and are registered in the caption of
35
“Exchange profit/(loss)” of the accompanying income statement.
2.5 Recognition of income and expenses
Below, there is a summary of the most significant accounting policies used by the Group to recognise
income and expenses:
2.5.1 Interest income and expense, dividends and similar items
In general, interest income and expense and similar items are accounted on an accruals basis,
applying the effective interest rate method defined in applicable legislation. Dividends received from
other companies are recognised when consolidated companies become entitled to receive them.
2.5.2 Commissions, fees and similar items
Income and expense related to commissions and similar fees, which should not be included in the
calculation of the effective interest rate of operations and/or do not form part of the acquisition cost of
financial assets or liabilities, except for those carried at fair value through profit or loss, are recognised
in the consolidated income statement using different methods depending on their nature. The most
significant methods used are explained below:
- Amounts associated with the acquisition of financial assets and liabilities carried at fair value
through profit or loss are recognised in the income statement at the payment date.
- Amounts arising from long-term operations or services are recognised in the income statement
over the term of the operations or services.
- Amounts relating to a one-off event are recorded in the income statement when that event
takes place.
2.5.3 Non-financial income and expenses
These amounts are accounted on an accruals basis.
2.5.4 Deferred collections and payments
They are registered on accounts by the amount resulting from financially updating at market rates
expected cash flows.
2.6 Offsetting of balances
Only debtor and creditor balances arising from operations which, under contract or legislation, provide
the possibility to offset and exist in the company, to be settled at their net amount, or simultaneously
realised and paid, are offset and therefore presented in the consolidated balance sheet at their net
amount.
2.7 Impairment of financial assets
The carrying value of financial assets is generally adjusted against the consolidated income statement
when there is objective evidence that there are impairment losses. This is the case where:
- For debt instruments, understood as loans and debt securities, when, following their initial
recognition, there is an event or combined effect of several events which have a negative
impact on the relevant future cash flows.
- For equity instruments, when following their initial recognition, there is an event or the
combined effect of several events, making it impossible to recover their carrying value.
36
As a general rule, impairment financial instruments value correction is charged to the income
statement of the period in which such impairment takes place and the recovery of previously recorded
impairment losses, if takes place, are recognised in the income statement of the period during which
the deterioration is eliminated or reduced. In the event that the recovery of any amount in respect of
the impairment recorded is considered impossible, such impairment is written off from the balance
sheet, although the Group may carry out the necessary actions to attempt to secure collection until
the definitive extinguishment of its debt claims due to lapsing, remission or other reasons.
Debt instruments and contingent risks portfolios, regardless of their owner, warranty or
instrumentation, are analysed to determine the credit risk to which the Group is exposed and to
estimate hedging requirements for impairment in value. For the annual accounts preparation, the
Group classifies its operations in terms of its credit risk by analysing, separately, the insolvency risk
due to the customer and country risk to which they are exposed.
Debt instrument’s future cash flows estimated are all amounts, principal and interest, the Group
believes will receive during the instrument’s life. All relevant information which provides data about
the possibility of future recovery of contractual cash flows that is available at the time of annual
accounts elaboration is considered in this estimate. Also, in estimating instruments with security’s
future cash flows, are taken into account the flows that would result from its realisation, less the
amount of costs for its acquisition and subsequent sale, irrespective of the probability of the
guarantee.
In the calculation of the present value of estimated future cash flows, the instrument’s original effective
interest rate is used as the update rate, if contract rate is fixed, or the effective interest rate on the
date to which the statements relate determined according to financial conditions of the contract, if
variable.
In the case of debt instruments measured at amortised cost, the amount of impairment losses incurred
is equal to the negative difference between the carrying value and the current value of future estimated
cash flows, using the original effective interest rate as the adjustment rate, if that rate is fixed, or the
effective interest rate at the date of the annual accounts calculated in accordance with the terms of
the contract, when a variable ratio, in the case of listed debt instruments, market value may be used
as a substitute, provided that it is enough reliable to consider it to be representative of the value the
Group will recover.
Objective evidence of impairment will be determined individually for all debt instruments that are
significant, and individually or collectively for the groups of debt instruments which are not individually
significant. When a specific instrument cannot be included in any group of assets with similar risk
characteristics, it will be analysed solely on an individual basis to determine whether it is impaired
and, if appropriate, estimate the impairment loss.
The collective assessment of a group of financial assets to estimate impairment losses is as follows:
- Debt instruments are included in groups with similar credit risk characteristics, indicative of
debtor ability to pay all amounts, principal and interest, in accordance with contractual terms.
The characteristics of credit risk, which are taken into account in order to group together
assets, are, for example, the type of instrument, the debtor’s sector of activity, the geographic
area of activity, type of guarantee, age of amounts overdue and any other factor that may be
relevant when estimating future cash flows.
- Future cash flows in each group of debt instruments are estimated based on the Group’s
experience of historical losses for instruments with similar credit risk characteristics to those
of the respective group, following the necessary adjustments to adapt historical data to current
market conditions.
37
- Impairment losses in each group are the difference between the carrying value of all the
group’s debt instruments and the present value of its estimated future cash flows.
Debt instruments not measured at fair value through changes in the consolidated income statement,
contingent risks and commitments, are classified based on the insolvency risk attributable to the client
or the operation, in the categories defined by the Annex IX from the Bank of Spain’s Circular 4/2017.
For debt instruments not classified as normal risk, estimates are made regarding the specific
impairment hedges necessary based on the criteria established in the above mentioned regulation,
bearing in mind the age of the unpaid amounts, the guarantees provided and the client’s financial
situation and, if appropriate, the guarantors.
Similarly, these financial instruments are analysed to determine the credit risk deriving from country
risk, understood to be the risk affecting clients resident in a certain country due to circumstances other
than normal commercial risks.
In addition to the specific impairment hedges indicated above, the Group hedges against losses
inherent to debt instruments not measured at fair value through consolidated profit or loss and
contingent risks classified as normal through group hedges, calculated based on historical impairment
and other familiar circumstances at the time of evaluation that are related to inherent losses incurred
at the date of the annual accounts, calculated using statistical methods, that have yet to be assigned
to specific operations.
In this sense, the Group has used the parameters established by the Bank of Spain, based on its
sector experience and information, which determine the method and amount to be used to cover
inherent impairment losses incurred in debt instruments and contingent risks classified as normal
risks, which are changed regularly on the basis of the development of the data in question. This
method of determining the hedging for impairment losses is based on the application of certain
percentages set in the applicable accounting legislation, which vary based on the risk classification of
financial instruments as established in the applicable regulation, and which change depending on the
risk classification of the financial instruments established by the abovementioned regulation.
In general, impairment of debt instruments is calculated by applying the following percentages to the
outstanding risk not covered by the amount to be recovered from the effective collateral, based on
the risk segment to which the operation belongs and the seniority of past due amounts:
From 90
days to 6
months
From 6 to
9 months
From 9
months to 1
year
From 1
year to 15
months
From 15 to
18 months
From 18 to
21 months
More than 21
months
Non-credit institutions and individual
entrepreneurs
Special Financing
Construc. and property develop.
70
75
85
90
95
100
100
Construc. civil work
55
65
70
80
95
100
100
Other espec. financing
55
65
75
90
95
100
100
Non-special Financing
Large companies
55
65
75
90
95
100
100
SMEs
65
70
75
85
90
95
100
Individual entrepreneurs
35
45
60
65
80
95
100
Houses
House purchase
Main residence unpaid (LTV) <80%
guarantee
45
50
65
70
85
95
100
Main residence unpaid (LTV) >80%
guarantee
45
50
65
70
85
95
100
Secondary residence
45
50
65
70
85
95
100
Consumer credit (inc. credit card debts)
55
65
80
85
95
100
100
Other
55
65
80
85
95
100
100
38
Generic provisions for operations classified as normal risk, will be different to that calculated for
regular risk in the watch-list. Both are calculated by applying the following percentages to the
outstanding exposure not covered with effective guarantees:
Normal
risk
Normal risk in watch-
list
Non-credit institutions and individual
entrepreneurs
Special Financing
Construc. and property develop.
1.9
30.0
Construc. civil work
2.0
18.8
Other especial financing
0.6
9.6
Non-special Financing
Large companies
0.6
9.6
SMEs
1.1
17.8
Individual entrepreneurs
1.4
13.9
Home
Home purchase
Main home unpaid (LTV) <80%
guarantee
0.7
18.0
Main home unpaid (LTV) >80%
guarantee
0.7
18.0
Secondary residence
0.7
18.0
Consumer credit
1.8
20.2
Which from: credit card debts
1.0
11.6
Other
1.8
20.2
In estimating effective collateral, for the purpose of calculating hedges, the following estimated
discounts on the reference value of such collateral will be applied:
TYPE OF REAL GUARANTEE
Discount over
reference value
(%)
Mortgage guarantees (first charge)
Buildings and finished building elements
Homes
30
Offices, commercial premises and warehouses
40
Other
45
Urban and developable land ordered
40
Other immovable property
45
Posted collateral of financial instruments
Money deposits
0
Other marketable financial instruments
10
Other non-marketable financial instruments
20
Other real guarantees (for example. second
mortgages, movable assets)
50
The Institute has constituted the corresponding provisions at December 31, 2023 with extreme
caution, and thus to be able to strengthen its balance sheet, with a detailed analysis of each borrower,
when needed, and taking into account uncertainties underlying the financing, due to the
macroeconomic environment.
In the case of real estate assets foreclosed or received in payment of debts, for the purposes of
valuation of the hedging that may correspond, the following discounts will be applied on the reference
value for said assets:
TYPE OF FORECLOSED PROPERTIES
Discount over
reference value
(%)
Buildings and finished building elements
Homes
25
Offices, commercial premises and warehouses
30
Other
32
Urban and developable land ordered
35
Other immovable property
40
39
The recognition in the consolidated income statement of the accrued interests on the base of the
contractual terms is interrupted for all the instruments of debt qualified individually and for those that
had calculated collective losses because of the deterioration for having amounts conquered with an
antiquity top to three months.
The amount of impairment losses incurred in debt securities and equity instruments included under
Financial assets at fair value through other comprehensive income is equal to the positive difference
between their acquisition costs, adjusted to any repayment of the principal, and their fair value less
any impairment loss previously recognised in the income statement.
When there is objective evidence that the decline in fair value is attributable to impairment, the latent
losses, recognised directly under ‘Other accumulated comprehensive income’ as adjustment in net
equity, are recorded immediately in the income statement. If, subsequently, all or part of the
impairment losses are recovered, the amount involved is recognised, in the case of debt securities,
in the income statement for the recovery period, and, in the case of equity instruments, under ‘Other
accumulated comprehensive income’ as adjustment in net equity.
For debt and equity instruments classified under non-current assets held for sale, losses recorded
previously under equity are considered to be realised and are recognised in the income statement at
the date of their classification.
For shareholdings in Associates, joint ventures and subsidiaries, the Institute estimates impairment
losses by comparing the recoverable amount with their carrying value. Such impairment losses are
recorded in the income statement for the period in which they arise while subsequent recoveries are
recorded in the income statement for the recovery period.
In the case that the probabilities of recovery any amount recorded, like impairment, were considered
impossible, these are eliminated from the balance sheet, although the Institute could carry out
necessary actions to try to recover, as long as, their rights do not extinguish permanently by expiration,
cancellation or other causes.
2.8 Financial guarantees and related provisions
A financial guarantee contract is a contract that requires the issuer to make specified payments to
reimburse the creditor for the loss incurred when a debtor fails to perform specific payment obligation
under the conditions, original or amended of a debt instrument, regardless of their legal form, which
can be, inter alia, of a surety, financial guarantee insurance contract or credit derivative.
The issuer of financial guarantee contracts recognises them under the heading “Other financial
liabilities” at fair value plus operation costs, which are directly attributable to its issuance, except for
contracts issued by insurance companies.
Initially, the fair value of financial guarantee contracts issued to a third party not connected within a
single operation in mutual independence conditions, is the premium received plus, presents cash
flows value to receive, using a similar interest rate to the financial assets issued by the Group with
similar term and risk. Simultaneously, it will be recognised as a receivable asset the present value of
future cash flows to be received at the rate of interest mentioned above.
Subsequent to the initial recognition, the contracts are treated according to the following criteria:
i) The financial guarantee’s commissions or bonuses value to receive is updated by recording
the difference in the income statement as financial income.
ii) The value of financial guarantee contracts that have not been qualified as doubtful, is the
initially recognised amount less the part charged to the income statement on straight-line basis
40
over the expected life of the guarantee or by other criteria, provided that this more accurately
reflects economic risks and benefits of the warranty’s perception.
The classification of financial guarantee contracts as doubtful will imply the respective hedging action
under the heading of “Provisions for contingent exposures and commitments”.
2.9 Accounting for leases
2.9.1 Financial leases
Financial leases are those in which all the risks and rewards substantially carried by the leased asset
are transferred to the lessee.
Whenever the Group acts as lessor of an asset in a financial lease operation, the sum of the present
values of the amount that will be received from the lessee plus the guaranteed residual value, usually
the purchase option price when the lease terminates, are recorded as financing provided to third
parties. It is therefore included in “Loans and receivables” in the consolidated balance sheet, in
accordance with the nature of the lessee.
When the Group acts as the lessee in a financial lease operation, the cost of the leased assets is
recorded in the consolidated balance sheet, on the basis of the nature of the asset leased and a
liability is carried in the same amount, which will be the lower between the fair value of the leased
asset and the sum of the present values of the amounts payable to the lessor, plus, if appropriate, the
purchase option exercise price. These assets are depreciated at similar rates to those applied to the
Group’s property, plant and equipment for own use (Note 2.12).
In both cases, the financial income and expense on financial leases is credited and charged,
respectively, to the consolidated income statement captions “Interest and similar income” and
“Interest and similar charges”, applying the effective interest rate method on the lease to estimate its
accrual, calculated according to the applicable regulations.
2.9.2 Operating leases
In operating leases, ownership of the leased asset and substantially all risks and rewards of ownership
are retained by the lessor.
Where consolidated companies act as the lessor in operating lease agreements, the acquisition cost
of the leased asset is registered under “Property, plant and equipment” in “Property investments” or
“Other assets assigned under operating lease”, depending on the nature of the leased assets. Such
assets are depreciated in accordance with the policies adopted for similar property, plant and
equipment for own use. The income from lease contracts is recognised in the consolidated income
statement on a straight-line basis in the caption “Other operating income”.
When the Institute acts as lessee in operating lease agreements, a lease liability is included at the
current value of payments to be performed (fixed, variable, exercise of call option, and others), as the
contract’s initial valuation, and a right-of-use asset valued at cost.
2.10 Personnel costs
2.10.1 Short-term remunerations
Short-term remunerations to employees are payments made within twelve months, following the end
of the year in which the employees have rendered services. This remuneration is measured, without
any adjustment, at the amount payable for the services received and recorded, in general, as
41
personnel costs for the year and a liability accrual account, which is recorded for the difference
between the total expense and the amount already satisfied.
2.10.2 Post-employment commitments
Pension commitments entered into by the Group, referring to those acquired by the Institute with
regard to employees, are reflected in the collective wage agreement in force and correspond to
defined contribution commitments.
The Institute’s employees are members of the Joint Employment System Pension Plan offered by the
State Administration and regulated by the Pension Plan and Fund Regulation Act approved by
Legislative Royal Decree 1/2002 (29 November) and enabling regulations approved by Royal Decree
304/2004 (20 February), which is included in the BBVA Employment Pension Fund, managed by
Gestión de Previsión y Pensiones, Entidad Gestora de Fondos de Pensiones and deposited at BBVA.
As defined contribution commitments, the Institute has assumed annual contributions for employees
that have rendered services for more than two years at 1 May of each year, regardless of whether
they are career civil servants or interim government employees, contracted personnel, temporary
employees or senior management. The following parameters are taken into account when calculating
the annual contribution:
• The professional group to which the employee pertains.
• Length of service (understood to be the number of three-year periods the employee has
worked in the Administration, regardless of the contractual arrangement).
Amounts to be contributed are those approved in the General State Budget for each year. Under the
heading “Personnel costs” of the consolidated income statement, there is no cost registered for this
year at December 31, 2023 and neither for the previous one at December 31, 2022.
2.10.3 Death and disability benefits and retirement bonuses
Commitments assumed with personnel for retirement bonuses and death or disability commitments
prior to retirement and other similar items, are estimated by calculating the present value of legal and
implicit obligations at the date of the annual accounts, after deducting any actuarial loss, less any
actuarial gain, the cost of past services yet to be recognised and the fair value of the assets that cover
the commitments, including insurance policies. The entire cost of past services and any actuarial
gains or losses are immediately recognised.
At December 31, 2023 a provision was recorded by the Group for post-employment commitments
amounting to 836 thousand Euros (770 thousand Euros at December 31, 2022).
2.10.4 Severances
Severances are recorded under the heading “Personnel costs” and the accompanying consolidated
income statement crediting the accounts “Provisions for pensions and similar obligations” under the
heading “Provisions” in the accompanying consolidated balance sheet, only when the Group is
demonstrably committed to terminating an employee or group of employees before their normal
retirement date, or to pay remuneration as a result of an offer made as an incentive for the voluntary
rescission of the employees.
At December 31, 2023 and 2022, the Group has not recorded any provisions regarding this aspect
as there is no plan or agreement that would require such an allocation.
42
2.11 Corporate Income Tax
Corporate income tax is considered as an expense and is recorded under the heading of “Income tax”
of the consolidated income statement.
Income tax expense for the year is calculated as tax payable on taxable income for the year, adjusted
for variations during the year in asset and liability balances arising from temporary differences, tax
credits and allowances, and any tax-loss carry forwards (Note 23).
The Group considers that there is a temporary difference when there is a difference between the
carrying amount and the taxable amount of an asset or liability. The amount attributed to an asset or
liability for tax purposes is considered the tax base. A taxable temporary difference is understood as
the one which will generate a future obligation for the Group to pay to the relevant Administration. A
deductible temporary difference is understood to be the one which will generate for the Group some
reimbursement right or a decrease in the payment to be made to the relevant administration in the
future.
Tax credits and allowances and tax credits for tax-loss carry forwards are amounts that, though
generated on completion of an activity or obtainment of a result, are not applied for tax purposes in
the relevant tax return until the conditions stipulated in tax legislation are fulfilled, and providing the
Institute the probability of application in future years.
Current tax assets and liabilities are amounts that the Institute expects to recover from or pay to the
corresponding tax authorities within 12 months, from the date on which they were recognised.
Deferred tax assets and liabilities are amounts that the Institute expects to recover from or pay to the
corresponding tax authorities in future years.
Deferred tax liabilities are recognised for all taxable temporary differences. Despite the above, no
deferred tax liabilities are recorded based on the recognition of goodwill.
The Group only recognises deferred tax assets deriving from deductible temporary differences, tax
credits or allowances or any tax-loss carry forwards, if they meet the following conditions:
- Deferred tax assets are only recognised in the case that the Group considers it likely to have
enough future taxable against which they may be offset.
- In the case of deferred tax assets deriving from tax losses, they have arisen from identified
causes that are unlikely to be repeated.
No deferred tax assets or liabilities are recognised when an asset is initially recorded, when it is not
deriving from a business combination and when, at the time of recognition, there was no effect on
book or taxable profits.
At the time of each accounting closing, deferred tax assets and liabilities are reviewed in order to
verify that they remain valid and that any relevant adjustments are made in accordance with the results
of the analysis performed.
2.12 Property, plant and equipment
2.12.1 Property, plant and equipment for own use
Property, plant and equipment for own use includes those assets that are owned or acquired under
financial leases that the Institute holds for its own current or future use for administrative purposes or
for the production or supply of assets and when they are expected to be used for more than one
financial year. Among other things, this category includes property, plant and equipment received by
43
the Group for the total or partial settlements of financial assets that represent debt claims against third
parties which are expected to be used on a continuous and internal basis.
Property, plant and equipment for own use is carried in the balance sheet at acquisition cost, which
consists of the fair value of any compensation paid plus any monetary payments made or promised,
less accumulated depreciation and, if appropriate, any estimated losses that result from comparing
the net value of each item with the relevant recoverable amount.
For these purposes, the acquisition cost of foreclosed assets that become part of property, plant and
equipment for own use by the Group, is similar to the net amount of the financial assets exchanged
for foreclosed.
Depreciation is calculated on a straight-line basis based on the acquisition cost of the assets
concerned less any residual value, with the understanding that land on which buildings and other
structures are located, have an undefined life and is therefore not depreciated.
Annual allocations to depreciation of property, plant and equipment are charged against the heading
“Depreciation-Property, plant and equipment” in the consolidated income statement and basically
equals the following depreciation rates (calculated based on the estimated average useful life of the
assets concerned):
Annual percentage
Buildings
2%
Plant
4 to 15%
Furnishings and office equipment
10%
Data – processing equipment
25%
Transport elements
16%
At each accounting closing, the Group determines whether or not there are any internal or external
indications that the net value of its property, plant and equipment exceeds their recoverable value. If
so, the book value of the asset concerned is reduced to the recoverable value and future depreciation
charges are adjusted in proportion to the adjusted book value and the new remaining useful life, if a
new estimate is required. This reduction in the book value of property, plant and equipment for own
use is applied, if necessary, by charging the heading “Impairment or reversal of impairment on non-
financial assets” in the consolidated income statement.
Similarly, when there are indications that the value of impaired property, plant and equipment has
been recovered, the Institute recognises the reversal of the impairment loss recorded in prior years
by crediting the heading “Impairment or reversal of impairment on non-financial assets” in the
consolidated income statement and, consequently, adjusts future depreciation charges. Under no
circumstances may the reversal of an impairment loss affecting an asset, increases its book value
above that which it would have had if the impairment losses had not been recognised in prior years.
In addition, the estimated useful life of property, plant and equipment for own use is reviewed at least
on an annual basis in order to detect significant changes in these estimates and, if any are detected,
adjustments will be applied by correcting the depreciation charge made to the consolidated income
statement in future years in accordance with the new estimated useful lives.
Repair and maintenance expenses for property, plant and equipment for own use, are charged
against results of the year in which they are incurred under the heading “Other administration
expenses” in the consolidated income statement. The financial expense incurred as a result of
financing property, plant and equipment for own use is charged against the income statement at the
time of accrual and these expenses do not form part of their acquisition cost.
44
2.12.2 Property investments
The consolidated balance sheet heading “Property investments” recognises the net value of land,
buildings and other structures that are held for rental or to obtain a capital gain on their sale as a result
of increases in their future market prices.
Criteria applied for recognising the acquisition cost of property investments for depreciation, for the
estimate of their respective useful lives and for recording any possible impairment losses, match with
those described with regard to property, plant and equipment for own use (Note 2.12.1).
2.13 Intangible assets
Intangible assets are considered to be identifiable non-monetary assets that, while not existing
physically, arise as a result of an operation or have been internally developed by the Group. Only
intangible assets whose cost may be reasonably estimated on an objective basis and which the
Institute deems likely to provide a future financial benefit, are recognised for accounting purposes.
Intangible assets, other than goodwill, are recognised in the balance sheet at their acquisition or
production cost, adjusted to accumulated amortisation and any impairment losses they may have
suffered.
Intangible assets may have an “undefined useful life” when the analysis performed on all relevant
factors leads to the conclusion that there is no foreseeable limit to the period over which they are
expected to generate net cash flows for the Institute, and they have an “definite useful life” in all other
cases.
Intangible assets with an indefinite useful life are not amortised, although at the time of each
accounting closing the Group reviews their respective remaining useful lives in order to ensure that
they continue to be indefinite. If this is not the case, an appropriate action is taken.
Intangible assets with a defined life-span are amortised according to some criteria similar to those
applied to property, plant and equipment. The annual amortisation charge for these intangible assets
is carried in the accompanying consolidated income statement caption “Amortisation - Intangible
assets”.
For intangible assets with both an indefinite and definite useful life, the Group recognises any
impairment in those assets and uses them as a balancing entry “Impairment or reversal of impairment
on non-financial assets” in the consolidated income statement. The methods applied to recognise
impairment losses on these assets and, if appropriate, the recovery of impairment losses, recognised
in prior years, are similar to those applied to property, plant and equipment (Note 2.12.1).
2.14 Provisions and contingent liabilities
When preparing the consolidated annual accounts, the Group differentiates between:
- Provisions: creditor balances that cover obligations that exist in the balance sheet date,
deriving from past events that could give rise to financial losses for the entities. Although such
losses are regarded as probable and are specific in nature, their amount and/or settlement
date cannot be determined.
- Contingent liabilities: possible obligations deriving from past events which may materialise
subject to one or more future events beyond the Group’s control.
The Group’s annual accounts include all significant provisions for obligations classified as probable.
Contingent liabilities are not recognised in the consolidated annual accounts, but information is
45
provided in accordance with requirements of Circular 4/2017 of Bank of Spain (Note 19).
Provisions are quantified using the best information available about the consequences of the event
that justifies them and are re-estimated at the year end. They are applied to meet the specific
obligations for which they were originally recognised and fully or partially reversed should such
obligations cease to exist or decrease.
At the 2023 and 2022 year end, a number of legal procedures and claims had been initiated against
the Group, arising in the ordinary course of business. The Group’s legal advisors and its directors
understand that the finalisation of these proceedings and claims will not have a significant effect other
than that provided for, if appropriate, in the consolidated annual accounts for the years in which they
finalise.
Accounting provisions that are considered necessary, as stated in the previous criteria, are charged
or credited to the consolidated income statement caption “Provisions expense or reversal of
provisions”.
2.15 Statements of cash flows
The terms employed in the cash-flow statements have the following meanings:
- Cash flows: Inflows and outflows of cash and cash equivalents, understood as short-term
investments which are highly liquid and involve a low risk of changes in value.
- Operating activities: typical credit institution activities and other activities that may not be
classified as investing or financing activities.
- Investing activities: acquisition, sale or disposal through other means of noncurrent assets and
other investments not included in cash and cash equivalents.
- Financing activities: activities that cause changes in the size and composition of equity and
liabilities and do not form part of operating activities.
2.16 Non-current assets held for sale and associated liabilities
The caption of “Non-current assets qualified as held for sale” of the accompanying consolidated
balance sheet includes the carrying value of individual items which sale is highly likely, under these
assets’ current conditions, within the term of one year to be counted from the date of the consolidated
annual accounts.
When, in exceptional cases, the sale is expected to occur over a period exceeding one year, the
Group assesses the updated sale cost, accounting time value fluctuation under the heading of
“Gains/(Losses) on non-current assets held for sale not classified as discontinued operations” in the
consolidated income statement.
Consequently, the carrying amount of these items, which may be financial or non-financial in nature,
will foreseeable be recovered through their selling price rather than through their continued use.
Specifically, the real estate assets or other non-current assets received by the Group to pay off all or
part of the payment obligations of its debtors regarding to the Group, are deemed non-current assets
held for sale, unless the Group has decided to use these assets on an on-going basis.
Symmetrically, “Liabilities associated with non-current assets held for sale” include the credit balances
associated with groups or for interruption in the operations of the Group.
Non-current assets held for sale are generally measured at the lower of their carrying amount when
they are recognised as such and their fair value, adjusted for estimated cost of sales. While included
in this category, property, plant and equipment, and intangible assets, subject to depreciation and
46
amortisation by nature, are not depreciated nor amortised.
In the event that the carrying amount exceeds the fair value of the assets, adjusted for cost of sales,
the Institute adjusts the carrying amount of the assets by the amount of the excess and makes a
balancing entry in the caption “Gains/ (Losses) from non-current assets and disposable groups of
elements classified as held for sale not qualifiable as discontinued operations” in the accompanying
consolidated income statement. In the event that the fair value of the assets were increased at a later
date, the Group reverses the losses previously recorded in the accounts, increasing the carrying value
subject to the limit of the amount prior to their eventual impairment, with counterpart in the
abovementioned caption.
The results from the sale of non-current assets held for sale are presented under “Gains/ (Losses)
from non-current assets and disposable groups of elements classified as held for sale not qualifiable
as discontinued operations” in the accompanying consolidated income statement.
However, financial assets, assets from employee salaries, deferred tax assets and assets for
insurance contracts that are part of a group of file or an operation in interruption are not valued in
accordance with the previous paragraphs, but in accordance with the principles and rules applicable
to these concepts, which have been explained in the preceding paragraphs of Note 2.
3. CUSTOMER SERVICE
On July 24, 2004, Order ECO 734 regarding customer service operations entered into operation. This
has the purpose of regulating customer services and the defender at banks services and credit
institutions. Regarding this Service, and although the Group is not obligated to have a customer
service department, the Institute attends to all claims and complaints that receives during the course
of its business, as a financial agency. In order to attain the highest quality of service, the Group
decided to create a Unit in December 2006 to centralise the reception, processing, and a response to
all complaints and suggestions received from suppliers, users and clients of ICO.
In 2023, a total of 140 complaints were received (289 in 2022), of which were addressed within an
average of 2.7 working days (much lower than the established deadline of 15 working days). 66% of
the total are related to credit operations in the COVID-19 Surety Lines, and were therefore passed on
to the relevant credit institutions. 30% were related to Mediation Lines, and the remaining 4% related
to other issues, unrelated to products or services managed by ICO.
4. DISTRIBUTION OF RESULTS
The distribution of 2023 results of the Group’s Parent Company (240,215 thousand Euros), at the
date of formulation of these consolidated annual accounts, has not been established by the Ministry
of Economy, Commerce and Business. Such distribution will adjust to the Bylaws.
5. RISK EXPOSURE AND OTHER INFORMATION ON THE INSTITUTE, AS GROUP’S
PARENT COMPANY
5.1. Risks. General aspects
Risk is inherent to financial activity. Properly measuring, managing and controlling risk must contribute
to attaining adequate margins and to the maintenance of an entity's solvency based on the confidence
of clients, investors and employees.
47
Without any intention of exhaustively classifying the risks faced by a financial institution, they may be
classified into four categories: Liquidity risk, market risk, credit risk and operating risk.
• Liquidity risk: The risk incurred as a result of an absence of sufficient liquid resources to comply
with obligations. This situation could be thanks to the inadequate assets and liabilities maturity
structure, or due to the exceptional market crisis situation.
• Market risk: Covers the influence on the income statement and equity exercised by adverse
changes in relevant financial variables, such as domestic or foreign currency interest rates,
exchange rates, share prices, etc. This risk may be subdivided into two large groups: Balance
sheet or structural market risk and market risk affecting trading portfolios.
• Credit risk: This one refers to the risk of not fully recovering the principal and interests related
to our investments within the estimated periods. This risk may also be subdivided into two
broad groups: Counterparty risks with banking institutions and credit risk regarding investment
operations.
• Operating risk: Incurred as a result of administrative, internal, accounting, computer, legal or
external errors due to unforeseen circumstances.
As a credit institution, the ICO is exposed to these types of risks, which must be identified, measured
and monitored in order to operate efficiently. This is done according to the Risk Policy Manual
approved by the General Board, which contains the different methods, applicable legislation,
procedures and organisational structure.
5.2. Risks – Organisational structure
In order to cover the entire risk spectrum, within its organisational structure, the Institute (according
to Presidential Organisational Circular 1/2023 of 12 July), has created specialised units under the
Directorate for Risk, which reports to the General Directorate for Risk and Finance.
The Directorate for Risk’s functions include, among others, drafting and proposing internal risk policies
and methods for analysing, managing and monitoring the Institute’s financial and credit risks,
assessing the admissibility of ICO credit risk and overseeing ICO’s adaptation to national and
international risk regulations, while driving, coordinating and supervising the performance of the units
under its remit.
The specialised Risk areas are Methodology and Credit Risk department and the Global Risks Control
area, each one with specific duties.
The primary duties of the Global Risk Control area are the following:
• Preparing, proposing and controlling financial risk measurement methodologies applied by the
Institute.
• Overseeing the correct compliance of the limits of financial risks and policies previously
approved.
• Elaborating regulatory reports on interest rate, exchange rate and liquidity.
• Analyse, monitor and review periodically credit counterparty lines, analyse them, and monitor
levels with the mediating entities and counterparts.
• Proposing criteria for market valuation of new financial products, establishing methodologies,
risk measurement and potential risk (Add-on).
48
• Analysing the adaptation of national and international legislation regarding risks within its
competency.
• Value at market price new products and structures and their potential risk (Add-on).
• Supervise the correct application of approved methodologies risks.
• Analysis of credit risk in Liquidity Lines Securitisation Funds operations.
• Propose new Liquidity, Market, Credit and New Products risk limits.
• Reporting and diagnosis of the risk situation for Assets and Liabilities Committee, Operations
Committee, Monitoring Committee and General Council.
• Report statements of interest rate risk, liquidity, large risks and Basel ratios for Bank of Spain.
• Update and maintain the Risk Adjusted Profitability tool (RAR).
• Update and maintain the ICO Price Control tool in RORAC
• Control of Risk Appetite Framework (MAR) indicators, and attending to meeting to report the
situation to the Board.
• Analyse, study and report on ICO’s participation in securitisation operations and ICO
guarantees to SME portfolios concerning the credit risk.
The Methodology and Credit Risk department, from which the Risk Methodology and Policies Area
and the ESG Acceptance and Risk Area depends, has the following functions, among others:
• Developing and maintaining applicable methodologies, in order to assess the risk of new
products and regulatory developments linked to the credit risk, developing the corresponding
regulations, as necessary.
• Analysing and assessing the admissibility of new direct credit operations and potential
customers that are not included in automated procedures; analysing and assessing the impact
on the risk assumed by ICO and the admissibility of proposed modifications to wholesale direct
credit operations that have already been approved or formalised but are not in arrears.
• Calculating the internal rating for new customers (corporate and project finance) and updating
the rating when required.
• Carrying out an analysis of issuer risks (companies) in the Alternative Fixed Income Market
(MARF) and corporate bonds market, as alternative corporate financing instrument, by ICO’s
underwriting of promissory notes and bonds in the different issues. Updating, analysing and
periodically reviewing debt issuers (MARF and Corporate Bonds) for the maintenance and/or
variation of limits when required.
• Participating in credit committees that discuss and adopt concession agreements.
• Analysing the adaptation to national and international standards in risk areas within its
competence.
• Monitoring the Institute’s Direct Risk classified as normal risk for companies and their economic
49
groups, the country and sector risk, accounting reclassification of operations in normal risk that
have been impaired, and assisting Management in the documentation and necessary actions
to attend the Monitoring Committee and the Board’s requirements with regard to risks.
• Proposing, maintaining and managing risk assessment tools and direct credit risk rating,
concentration limits by economic group, country and sector risk.
• Proposing the methodology for hedging impaired credit risk and the applicable tools, and
allocations and reversals of customer provisions that fall within its remit.
• Based on applicable regulations and the market practice, developing a model to assess ESG
Risks and to include them in the analysis of direct financing operations that affect the credit risk.
• Collaborating in the elaboration of budgets and PAPs at the level of estimation of non-defaulted
risk and foreseeable hedges.
• Participating in the Monitoring Committee of the direct loan portfolio of I+CO, with coordination
and presentation of direct non-defaulting risk holders.
The ICO has a team of specialised professionals in each type of risk, each one responsible for his/her
own duties and acting in accordance with the inspirational risk principles, the risk policy manual in
force and existing internal procedures.
5.3 Liquidity risk at ICO
Community legislation and its development in Spain in this matter only establish general requirements
for the measurement, control and management systems of liquidity risk in entities, and are contained
in the following normative texts:
- Direc
rudential supervision of credit institutions and investment companies.
tive 2013/36/EU of 26 June, related to the access to the activity of credit institutions and to
the p
- Regulation (EU) No. 575/2013 of 26 June, on prudential requirements of credit institutions and
investment services companies, part six.
- Law 10/2014 of 28 June, on the management, supervision and solvency of credit institutions,
Articles 41, 42 and Additional Provision Eighth.
- RD 84/2015 of 13 February, which develops Law 10/2014, Article 53.
- Delegated Regulation (EU) 2015/61 of the Commission from October 10, 2014, completing
Regulation 575/2013 with regard to the Liquidity Hedging Requirement (LCR) and technical
regulations on liquid assets.
- Circular 2/2016 of 2 February, which establishes accounting standards, annual accounts, public
annual accounts and reserved statistical information of securitisation funds that replaces Circular
3/2008 of 22 May (repealed), rule 51, DT6 and Annex VII.
- Execution Regulation (EU) 2016/313 of the Commission, of 1 March, amending the Execution
Regulation (EU) 680/2014 with regard to Additional Control parameters for the purpose of
information on liquidity (ALMM).
50
- Execution Regulation (EU) 2017/2114, of 9 November, amending Regulation (EU) 680/2014 and
2016-31 with regard to templates and technical instructions on the regulatory statements of
additional parameters of control for the purpose of information on the liquidity risk (ALMM).
- Circular 4/2017 of 27 November, standards 59 and 60.
- Delegated Regulation (EU) 2018/1620 of 13 July, amending several Articles of the Delegated
Regulation (EU) 2015/61, concerning definitions of requirements on qualifications of liquidity levels
and liquid assets.
- Execution Regulation (EU) 2020/429 of 14 February, substantially amending Execution Regulation
(EU) 2016/322, concerning technical execution standards concerning the communication of
information for supervision purposes on the Liquidity Coverage requirement (LCR), and also
amending Execution Regulation (EU) 2017/2114, concerning templates and technical instructions
on regulatory statements of additional control parameters for the purpose of information on the
liquidity risk (ALMM)
- Execution Regulation (EU) 2021/451 of the Commission, of December 17, 2020, establishing
technical execution standards for the application of the Regulation (EU) no. 575/2013 of the
European Parliament and the Council in relation to the communication of information for
supervision purposes by entities, and repealing Execution Regulation (EU) no. 680/2014.
- Execution Regulation (EU) 2022/2365 of 2 December, updating the list of ECAI authorised by the
EU, a well as the homogenisation per credit quality levels of the different ratings of each ECAI.
- Update of EBA technical standards COREP templates version 3.2 June 2023. Modification of
liquidity risk templates ALMM and NSFR regulatory statements. Partially amends technical
standards set out in Implementing Regulation (EU) 2021/451.
In general, there is no specific requirement for capital for liquidity risk beyond a set of action standards
to be followed (qualitative requirements) contained in Fifty-first Rule of chapter six of risk treatment of
Circular 2/2016 where it is also mentioned the need to report on the actions carried out in the process
of capital self-assessment and supervisory review contained in chapter 5, all in order to assess
whether its internal capital is sufficient to cover its current and future activities.
Currently, with the publication of the updated version of the Basel III liquidity and solvency documents:
Global regulatory framework to strengthen banks and banking systems and Basel III: International
framework for measurement, the standardisation and monitoring of liquidity risk is a new step in the
direction of guaranteeing more efficient parameters in the measurement and control of liquidity. As of
January 1, 2013, the Basel Committee published: The liquidity Hedging Ratio and liquidity risk
monitoring tools, which advance the definition and monitoring of the short-term liquidity ratio, and
complemented this work with the publication on January 12, 2014 of the Guidance for Supervisors on
Market-Based Indicators of Liquidity.
In this sense, on January 17, 2015 the Delegate Regulation 2015/61 was published, amending
Regulation CRR 575/2013 of the European Parliament and of the Council is complete with regard to
this ratio (LCR) and by calendar that starts on October 1, 2015 with an obligatory 60%, 70% as of
January 1, 2016, 80% as of January 1, 2017, and which entered fully in effect (100%) from January
1, 2018.
On January 2014, “Basel III: Net Stable Financing Ratio” (NSFR) consultation document was
published for the definition and calculation of the ratio of long-term liquidity, which after a consultation
phase, which lasted until April 11, 2014, led to the publication of the final document in October 2014.
51
As a result, it is necessary to calculate a minimum net stable financing ratio. After the publication, on
June 2019, of Regulation 876/2019 is applied since the end of June 2021.
During 2013 and following years, the Institute calculated on a monthly basis short and long term
liquidity rates, as additional liquidity controls. In every period, the Institute has achieved results that
are within the limits that would be applied in the future.
Furthermore, prospectively throughout 2015 and in following years, based on the document published
by the BIS “Basel III: the Net Stable Financing Ratio” of October 2014, and with definitions and criteria
in force at each moment, the results have been calculated quarterly, which provide the ICO balance
with the introduction of different scenarios handled one year ahead (2024), in relation to the NSFR
ratio.
At ICO, it is perfectly defined an organisational structure responsible for reporting, monitoring and
controlling liquidity risk.
The measurement used to monitor balance sheet liquidity risk is the liquidity gap. The liquidity gap
provides information regarding the mismatches between the inflow and outflow of funds on a daily
basis, for periods of up to 12 months covering all balance sheet and off-balance sheet items that
produce cash flows on the actual date occurring.
Liquidity gaps are measured in one week periods, and one, three and six month’s periods. There is a
percentage over the total of Institute’s liabilities that cannot be exceeded for each period: one week-
period: up to 0.5%, one month period: up to 1%, three month period: up to 2.5% and six month period:
up to 5%.
Short-term liquidity is monitored on a daily basis. On a weekly basis, and at the end of each month,
this monitoring and control of limits takes place with a horizon of 1 week, 1 month, 3 months and 6
months.
The ICO has established quantitative limits and alerts that allow us to get ahead from possible
situations of liquidity tension.
There is also a policy of diversifying sources of basic finances in order to minimise this risk, and a
regular review of liquidity including any projections for new activity, in order to establish needs in terms
of amounts and dates of financing, for an annual financing plan, sufficiently in advance.
Likewise, approved by the General Board on February 27, 2018, there is a liquidity Contingency Plan
that establishes a priority order as reference when resorting to financing sources in stress scenarios.
This Contingency Plan was updated and presented, for the last time, to the Committee of Assets and
Liabilities (COAP) last July 19, 2023.
In general, ICO raises liquidity in a variety of ways, including raising the interbank market, repo and
simultaneous liquidity and issuing debt securities in wholesale and retail markets.
It should be noted that the financial crisis that affected international and national markets, rooted in
the US sub-prime market crisis, triggered a sharp downturn by financial markets, causing the
resources for raising financing on which both international and national financial entities rely to decline
sharply. As a result, fund raising on the interbank market or through the issuance of debt securities
was also seriously affected by this crisis.
In this sense, due to the existing situation, decisions have been taken throughout 2023, as done
previously, to adapt ICO to the new circumstances in order to ensure the liquidity needed to meet its
payment commitments on time and to achieve its strategic operating, investment and growth targets.
52
Thanks to these measures, ICO's management also does not anticipate any liquidity shortages in
2024.
Maturity Analysis of trading and hedging derivatives
The following table shows, by notional, the contractual maturities for euro-denominated derivatives,
recognised as financial assets and financial liabilities at December 31, 2023 and 2022, except for
embedded derivatives in hybrid financial instruments and loan commitments considered financial
derivatives as they can be settled, by adjusting, in cash or with another financial asset, in which the
maturities are deemed essential for understanding the Institute’s cash flow projections:
At 31 December 2023:
Thousands of Euros
Up to 1 year
From 1 to 5
years
From 6 to 10
years
From 11 to 15
years
From 16 to 20
years
Total
Derivatives held for trading
88 305
165.158
-
83.280
-
336 743
-Of which: credit commitments
considered as derivatives
Hedging derivatives
7.976.615
4.694.444
2.634.891
5.426
-
15.311.375
8 064 920
4.859.602
2.634.891
88.706
-
15 648 118
At 31 December 2022:
Thousands of Euros
Up to 1 year
From 1 to 5
years
From 6 to 10
years
From 11 to 15
years
From 16 to 20
years
Total
Derivatives held for trading
145.386
210.951
356.337
-Of which: credit commitments
considered as derivatives
Hedging derivatives
4.602.312
3.477.182
2.198.053
619.739
52.882
10.950.168
4.747.698
3.688.133
2.198.053
619.739
52.882
11.306.505
In relation to the information included in charts above, the following must be highlighted:
▪ Where a counterparty can choose when an amount should be paid, the derivative is assigned
in the first period, in which the payment to the Institute may be demanded;
▪ The amounts included in the charts, correspond to undiscounted contractual amounts.
Interest-rate swaps are shown at their net amount if settled by differences, loan commitments
considered derivatives at their gross amount and all remaining financial derivatives at their
contractual amount of exchange unsettled by differences;
▪ For derivatives with a non-stated contractual amount at the reporting date, e.g., because they
depend on the performance of an index, the residual maturity, considered for classification
purposes in the preceding tables, was determined based on prevailing conditions at December
31, 2023 and 2022, respectively;
53
Liquidity GAP analysis
The purpose of the liquidity management is to ensure that the entity maintains appropriate liquidity
levels to cover its needs, both at the short and long terms, optimising the impact that the maintenance
of its liquid funds could have in the income statement.
On a daily basis, the liquidity profile on the balance is monitored for the purpose of control, information
to management, and analysis of funds’ needs for at least the following twelve months, additionally
incorporating scenarios with the analysis of funds’ needs to cover the activity foreseen for such period.
As explained above, ICO’s liquidity management is based on the analysis of the difference between
inflows and outflows generated by contractual maturities of operations of its balance (liquidity gap)
and cash flows generated from activity forecasts. This analysis provides the necessary information
on the volume of funds that will be necessary to gain, resorting to different financing sources available
for the entity.
Moreover, the Institute maintains a buffer of high-quality liquid assets that will allow, where necessary,
obtaining liquidity immediately through its discount on the European Central Bank. The balance of
assets that may be used by the Institute as liquidity reserve has sufficient capacity to cover its negative
liquidity gaps, for two purposes:
- Contribute flexibility when planning the volume and timing of the gaining of necessary funds
to cover liquidity gaps.
- Security buffer to face possible tensions or crisis situations in markets.
The tables below compare liquidity inflows and outflows at different maturities (partial and
accumulated liquidity gaps). Inflows and outflows in foreign currency are shown at their equivalent
value in such currency.
Additionally, the evolution of the balance of liquid assets and their level of coverage over liquidity gaps
are incorporated for the different terms.
At 31 December 2023 (thousands of Euros):
Up 1 month
1-3 months
3-6 months
6-12 months
1-2 years
2-5 years
More than 5
years
Inflows equivalent value Euros
3,603,956
768,617
1,251,219
2,212,895
3,951,855
11,341,426
8,226,626
Outflows equivalent value Euros
(1,694,383)
(3,358,442)
(1,997,986)
(4,407,879)
(3,085,007)
(5,888,517)
(4,918,557)
Partial liquidity gaps
1,909,573
(2,589,825)
(746,767)
(2,194,985)
866,849
5,452,909
3,308,069
Accumulated liquidity gaps
1,909,573
(680,253)
(1,427,019)
(3,622,004)
(2,755,156)
2,697,753
6,005,822
Buffer of highly-liquid assets
2,538,718
3,074,243
3,546,049
3,720,182
3,226,296
339,046
-
Difference between buffer and
negative accumulated gaps
n.a.
2,393,991
2,119,029
98,178
471,140
n.a.
n.a.
Coverage % of buffer over
negative accumulated gaps
n.a.
452%
248%
103%
117%
n.a.
n.a.
At 31 December 2022 (thousands of Euros):
54
Up 1 month
1-3 months
3-6 months
6-12 months
1-2 years
2-5 years
More than 5
years
Inflows equivalent value Euros
3 872 472
980 073
1 679 182
2 230 049
4 242 749
9 811 713
8 215 213
Outflows equivalent value Euros
(3 337 960)
(4 948 520)
(1 464 627)
(3 014 567)
(3 521 332)
(4 696 093)
(4 026 557)
Partial liquidity gaps
534 512
(3 968 447)
214 555
(784 518)
721 417
5 115 620
4 188 656
Accumulated liquidity gaps
5346 512
(3 433 935)
(3 219 380)
(4 003 898)
(3 282 481)
1 833 139
6 021 795
Buffer of highly-liquid assets
3 487 724
3 634 960
4 282 028
4 033 395
3 405 504
1 076 291
-
Difference between buffer and
negative accumulated gaps
n.a.
201 025
1 062 648
29 497
123 023
n.a.
n.a.
Coverage % of buffer over
negative accumulated gaps
n.a.
106%
133%
101%
104%
n.a.
n.a.
As it may be seen in these charts, negative accumulated liquidity gaps are covered by the available
buffer of liquid assets.
In addition to highly liquid assets, there is another series of eligible pledged assets in the ECB policy
as coverage for provisions of funds in TLTRO III which volume at December 31, 2022 is of 318,000
thousand Euros.
In relation to the liquidity hedging ratio, a chart is presented below with quarterly averages of the ratio
based on observations at the end of the month in the twelve previous months for each quarter of the
period of 2023, indicating the averages of total liquid assets and averages of net liquidity outflows,
liquidity outflows and liquidity inflows.
LIQUIDITY COVERAGE RATIO (LCR) 2023
Quarterly average (% and thousands of Euros)
1Q
2Q
3Q
4Q
LCR RATIO
291,43%
275,71%
614,08%
740,97%
TOTAL LIQUID ASSETS
6.180.226
7.267.338
6.052.571
7.327.155
NET LIQUIDITY OUTFLOWS
2.347.171
2.735.283
1.101.072
1.753.882
Liquidity outflows
(3.755.948)
(5.346.334)
(3.636.757)
(5.170.277)
Liquidity inflows
(1.408.777)
(2.611.051)
(2.535.685)
(3.416.395)
Lastly, the following information chart shows the net stable financing ratio at the end of each calendar
quarter of the period of 2023, additionally showing the stable financing available at the end of each
quarter and the financing required at those dates.
NET STABLE FINANCING RATIO (NSFR) 2023
Quarterly average (% and thousands of Euros)
1Q
2Q
3Q
4Q
NSFR RATIO
116,57%
106,17%
109,39%
111,76%
AVAILABLE STABLE FINANCING
19.722.482
18.398.867
19.974.786
21.109.436
REQUIRED STABLE FINANCING
16.919.464
17.329.884
18.259.908
18.889.025
5.4. Market risk at ICO
As indicated above, it is possible to distinguish two major groups within this risk: balance sheet or
structural market risk, and the trading portfolio risk. In accordance with its internal policy, ICO is
currently attempting to minimise trading portfolios and hold only those that, following the current
accounting legislation, do not allow their classification as hedging or investment. Accordingly, market
55
risk results almost exclusively from ordinary activities.
1) There are two basic criteria through which exposure to changes in interest and exchange
rates is revealed: Profitability and Solvency:
Profitability: At the ICO this, mainly derives from the income statement and therefore the
relevant variable here is the Interest Margin or Financial Margin.
Solvency: A company's equity is the primary guarantee for lenders. The value of this capital
or equity is the main criterion for measuring solvency.
Using these considerations, the ICO has implemented a system for measuring market risk
based on three pillars: a) Calculation of the sensitivity of the annual Financial Margin. b)
Calculation of the sensitivity of equity and c) Calculation of hypothetical trading portfolios’
“Value at Risk”, if any exist.
2) Methodology. In order to measure balance sheet risks relating to the Financial Margin, the
weighted partial maturity gap method was used before 2015, calculated as the difference
between asset and liability volume and off-balance sheet operations that mature or renew
interest rates within the following 12 months, weighted by the period affecting the Margin.
In order to measure the sensitivity of Equity, the duration gap method was used before 2015.
The duration gap is obtained as the difference between the duration of assets and liabilities,
and once the difference is obtained, the sensitivity gap may be calculated.
Both methods were replaced in mid-2014 by other simulations based on Interest Income and
Net Asset.
Regarding the Value at Risk, the methodology to be used will be determined by the type of
portfolio involved and may be based on parametric, historical simulation or Monte Carlo
methodology.
3) Risk degree. The decision regarding the degree of risk assumed by ICO is the Senior
Management’s responsibility, which based on the proposal of the Directorate for Risks and
Accounting, establishes the acceptable limits based on the particular characteristics of the
ICO. These limits are reviewed regularly.
For the purpose of assessing a sensitivity limit of the Financial Margin, it will be estimated
based on implicit rates, calculated on the basis of the market curve and on the one on which
increases or decreases are applied by +/- 200 bps, applying in the decreasing scenario a floor
in -1%. The difference between both calculations, in absolute value, will be the estimated
sensitivity, which amount cannot imply a decrease of the simulated Financial Margin above
35% of the Gross Margin, provided that it does not exceed 65% of the Financial Margin
established in the annual budget. in any case, a reduction of 35 million Euros shall be admitted
as limit.
In order to determine the sensitivity of the Financial Margin for variations of the exchange rate
in currencies Euro/US Dollar and Euro/Pound Sterling, variations of +/- 10% will be assumed.
The exchange rate risk shall not exceed, in any case, 25% of the global limit established for
the Financial Margin.
As a result of applying these movements of +/- 200 bps, with these shifts in interest rates, the
sensitivity of the balance of ICO to December 31, 2023 was -53,114 million Euros in total,
distributed as follows: 49.832 million for the balance in Euros, -1.186 million Euros of the
balance in US Dollars, and -0.235 million Euros of the balance in British Pounds Sterling.
56
Exchange rate (with variations of +/-10% on exchange in USD/EUR and GBP/EUR) was
-1.342 million Euros in Dollars and -0.519 million Euros in Pounds.
Likewise, the sensitivity of the ICO’s Financial Margin at December 31, 2022 was of 58.137
million Euros, representing 93.85% of the self-imposed limit of -61.95 million Euros (in force
at such moment), with the following distribution: -52.281 for interest rate of the balance sheet
in Euros, -1.921 for interest rate of US Dollar, and -0 for interest rate of the balance sheet in
Pound Sterling. Per exchange rate (variations of +/-10% in interest rates USD/EUR and
GBP/EUR), it was of -3.641 million Euros in Dollars and -294 thousand Euros in Pounds.
For the purpose of establishing a limit in the sensitivity of the net asset value, current values
of our balance will be calculated through a market curve and another to which increases or
decreases are applied by +/- 200 bps with a floor, in the scenario of decrease of rates, by -1%
for immediate maturities, which floor will increase in 5 bps per year, until 0% is reached for
maturities in 20 or more years. Such absolute floor is displacement. The difference between
both values will be considered as the sensitivity of the net asset value of our balance in
absolute value. The percentage (%) implied by this variation on the net asset value shall not
represent a decrease above 10% of the estimated net asset value.
In order to determine the sensitivity of the net asset value for exchange rate variations in
currencies Euro/US Dollar and Euros/Pound Sterling, movements of +/- 10% will be assumed.
At December 31, 2023, the values of the sensitivity of the ICO Net Asset reached
-5.75% in value added with a distribution on balances as follows: -5.52% for Euro interest rate,
-0.14% in the US Dollar, and -0.04% in the Pound Sterling. Exchange rate for Dollar presented
a sensitivity of -0.03% and -0.02% for Pounds.
At December 31, 2022 sensitivity values of ICO’s Net Asset Value were of -4.23% with a
balance distribution of: -3,69% for interest rate of Euro, -0,23% in the balance of US Dollars
and -0.05% in the balance of Pound Sterling. Per exchange rate, sensibilities were of -0.25%
in Dollars and -0.00% in Pounds.
In addition to the abovementioned sensibilities and results, the ICO has established a regular
system integrated with the application for the risk measurement, management and control, in
order to verify the impact that could derive from different scenarios of evolution of relevant
financial variables in the Financial Margin or in the Net Asset Value and, on a monthly basis,
other sensitivity estimates are performed, based on different assumptions of variations of
interest rates. For instance, we note the sensitivity based on estimates of variation of interest
rates provided by the Service of Studies at a one-month horizon, variations of the 5-year
historical series of variations of interest rates or a stressed variation (6 times), historical
variations, conversion to a positive rate curve or inversion of the curve.
Moreover, on a quarterly basis, and following EBA guidelines of interest rate risk management
of the balance in activities other than negotiation GL/2018/02, the variation of the Economic
Value of Equity (EVE) is calculated at least for each currency, when assets or liabilities
denominated in such currency represent 5% or more of total financial assets (excluding
property, plant and equipment) or financial liabilities of the banking book, or less than 5% if
the sum of assets or liabilities included in the calculation is below 90% of total financial assets
o financial liabilities of the banking book, in each of the 6 scenarios marked by it (parallel
movement upwards or downwards of 200 basic points, positivisation, flattening, rising short
rates, falling short rates).
4) Risk modification. The last step for efficient risk management is the ability to modify out
maturity and duration gaps in order to bring them into line with desired risk values at any given
moment, using balance sheet or off-balance sheet instruments based on market opportunities
57
and in accordance with the management decisions taken within the authority granted for this
purpose or the Balance Management Department, the General Finance and Strategy
Management or the Operations Committee.
The main currencies used in which ICO holds balance sheet positions at December 31, 2023
are the Euro and the US Dollar.
If we look at the assets of the balance sheet, the Euro concentrates approximately 89.82% of
the total, the US Dollar being of 8.10%, while other currencies distribute the remaining amount.
Liabilities concentrate around 97.25% of the total balance sheet, with a total of approximately
59.30% in Euros, and 37.95% in US Dollars.
For 2022 closing, the ICO’s main currencies in its activity also were the Euro and the US Dollar.
In this case, both of them together represented around 97.09% of total assets, where the Euro
represented 89.13% and the Dollar the remaining 7.96%, while they represent 94.34% of
liabilities, distributed in 64.62% in Euro and 29.71% in Dollars.
Regarding currencies other than the euro and Dollar with which the Institute operates, its balance
sheets are virtually saved from interest and exchange rate risks either because the operation involves
financing obtained in the currency concerned and converted to Euros using a derivative instrument
that completely covers all currency flows, or because the financial of a certain asset is designed to
avoid these risks.
5.5. Credit risk at ICO
As has already been mentioned about credit risk, there are two broad groups: Counterparty and
country risk.
The first group includes operations with credit institutions, both on and off the balance sheet.
Monitoring activities are carried out by using a system that integrates the administration of operations
and the risks deriving from them in real time, providing operators with current information regarding
counterparty credit lines available at any given moment.
The competent bodies at ICO have defined and approved a method for consuming counterparty credit
lines based on the evaluation of the operations at market prices plus a potential future or add-on risk,
that is measured as a percentage of the nominal value of the operation, calculated as a potential
maximum loss of 95% of confidence over the life of the operation. The methodology is periodically
reviewed, and the add-ons are adjusted at least on a half-yearly basis.
The basic criteria for establishing counterparty lines are also approved by ICO's General Board on a
half-yearly basis and is performed an individualised analysis of them. These counterparty lines are
subdivided into two broad groups as a result of the operating characteristics of the ICO. The first of
the counterparty lines is related to cash operations. The other counterparty line is related to mediation
operations, operations in which the ICO finances several investment projects through framework
programmes arranged with several entities such as, for example, lines of Businesses and
Entrepreneurs or Internationalisation.
Operations involving derivatives contracted by ICO have counterparties with high credit ratings, so
that a very high percentage of these, almost 100%, maintain an Agency rating investment grade.
These counterparty institutions operate at the national and international level.
ICO’s activities with credit institutions, in the area of both second-floor and direct facilities, are carried
out with counterparties that, in almost 91% of cases, have an investment grade rating.
58
The ICO has structured several stages of evaluation and control relating to company credit risk:
Acceptance, Monitoring and Recovery.
At the Acceptance stage, the Institute performs an analysis of companies and operations based on
an on-going concern evaluation, guarantees are analysed in order to issue an opinion about the risk
and the potential client, which is the basis for taking decisions by the Operations Committee or
General Board, as appropriate.
The Monitoring process has the purpose of making the Institute’s credit portfolio to achieve the highest
quality, i.e., ensures that our loans are being repaid on a timely basis, on the agreed dates. The basic
monitoring unit is the client, not the operation, such that any incident affecting an operation affects
the rating of a client and its group. This is achieved by a permanent control, with periodic reviews of
the economic and financial situation of the same and keeping support tools updated for decision-
making and it allow for detect warning signs; as well as promoting action plans against problematic
risks in order to maximise the repayment of financing granted.
Under the heading regarding credit risk, special mention must be made to the so-called country risk.
Country risk refers to the solvency of all counterparties characterised as pertaining to an area
geographically, politically and legally defined as a State.
In this sense, ICO has approved a methodology for measuring country risk that follows the legislation
and complies with the objective of evaluating countries by group risk based on multiple criteria,
thereby allowing for a defined policy when recording provisions for that country risk, evaluating direct
loan operations and segmenting the non-resident loan portfolio. Rating agency and OECD-CESCE
evaluations are used as a source of information when classifying countries into risk groups.
5.6. Operating risk at ICO
Measuring and controlling operating is increasingly important, especially bearing in mind the Capital
Accord (Basel III). The risk deriving from inadequate processes, incorrect records, system failures,
legal risks or the risk of loss inherent to the formalisation of operations is included.
Operational risk is broken down into three main risks: technological, business continuity and
conduct risk:
- Technological risk: it is the risk of loss due to inadequate or failed internal systems processes
or external events. In addition, this risk includes cyber security and system operations.
- Business continuity risk: it is the risk of not continuing to perform the ICO’s essential
functions following a critical situation that has interrupted normal processes.
- Conduct risk: the risk of loss due to staff failures including conduct risk.
In this area, a number of tools have been developed that will facilitate the task of dealing with
operational risk. Specifically, the Strategic Risk Framework or Risk Map, which includes all the risks
detected by ICO and the controls to be carried out for their proper management, policies covering the
monthly monitoring of the control panel or activity indicators, the development of processes and
internal procedures, the definition of client and operations monitoring and internal control of incidents,
or the existing contingency plan. It is important to mention that the regular controls applied to
procedures and operations are performed by internal and external auditors.
5.7 Credit risk exposure with companies
5.7.1 Classification per sector
Taking into account a classification by sector, the distribution of the risk exposure (*) is as follows:
59
Millions of Euros
2023
2022
Amount
% s/total
Amount
% s/total
Property investment
381
3%
413
4%
Construction of social housing for sale
4
0%
5
0%
Construction of social housing for rent
277
2%
298
3%
Acquisition and development of land
87
1%
101
1%
Others
13
0%
9
0%
Investment property, plant and equipment
10.963
78%
8.161
70%
Renewable energies
2.280
16%
1.742
15%
Water infrastructures
77
1%
93
1%
Electricity infrastructures
2.675
19%
1.053
9%
Gas and fossil fuel infrastructures
1.048
7%
939
8%
Transport infrastructures
3.377
25%
3.016
26%
Tourism and leisure
107
1%
151
1%
Social-health infrastructures
89
1%
89
1%
Telecommunications
192
1%
108
1%
Audio-visual production and exhibition
50
0%
32
0%
Business parks and other constructions
25
0%
30
0%
Other
716
5%
661
6%
Research and Development material investment
327
2%
247
2%
ICO Finance lines AA.CC. Agencies
-
-
-
-
Acquisitions of companies
519
4%
603
5%
General corporate needs
1.194
8%
1.421
12%
Restructuring of liabilities
132
1%
407
3%
General State Budgets
896
6%
673
6%
14 085
100%
11 678
100%
(*) Including customer loans and advances without valuation adjustments or impairment losses (except for “other financial assets”). Also
includes financial guarantees for customers and debt securities of resident Public Administrations classified as loans and advances
receivable.
At December 31, 2023 and 2022, the risk exposure is mainly concentrated in the sectors included
under the caption “Investment property, plant and equipment”, which accumulates 78% of the total
risk in 2023 (70% in 2022). Within this caption, the weight of the total risk of the “Transport
infrastructures” sector (25% of the total in 2023 and 26% in 2022), “Electricity infrastructures” (19%
of the total balance in 2023 and 9% in 2022) and “Renewable energies”, with 16% of the total risk in
2023 (15% in 2022), are to be noted.
5.7.2 Classification by geographic location of financial investments
The total risk at December 31, 2023 is distributed as follows: 74% in operations financing investments
in Spain amounting to 10,396 million Euros (69% in 2022 with 8,108 million Euros) and 26% for an
amount of 3,690 million Euros (3,570 million Euros in 2022) in operations aimed at financing
investment projects in other countries.
The risk distribution for investment projects in the national territory per Autonomous Communities in
2023 is the following: national scope 77%, Madrid 7%, Catalonia 6%, Valencia 3% and Andalusia 2%
(72, 5%, 6%, 5% and 2% in 2022, respectively).
In turn, the risk of operations destined for the international market breaks down as follows, at
December 31, 2023 and 2022:
60
Millions of Euros
2023
2022
Amount
Percentage
Amount
Percentage
European Economic Community
1 025
19%
800
22%
Latin America
1,036
28%
858
24%
United States
172
5%
246
7%
Rest of Europe
30
9%
357
10%
Multi-region (*)
1,426
39%
1,308
37%
3,689
100%
3,570
100%
(*) It includes the risk of operations whose outward investment takes place in different countries or multiple geographic areas.
5.7.3 Distribution of loans to customers by activity
The distribution, at December 31, 2023, is the following:
Loans real guarantee: carrying amount on LTV
TOTAL
Of which
property
guarantee
Of which
other real
guarantee
Below
40%
40 – 60%
60- 80%
80 – 100%
Above
100%
Public Administrations
2 799 588
105 975
27 176
93 122
39 581
-
-
448
Other financial
corporations (financial
activity)
477 832
-
163 997
63 507
-
44 600
-
55 890
Non-financial corporations
(non-financial activity)
9 229 852
179 441
1 401 783
1 140 855
167 485
47 185
164 021
61 678
Construction / real estate
development
88 679
88 679
-
72 495
-
-
16 184
-
Civil engineering
construction
281 861
-
222 530
179 340
29 645
13 545
-
-
Other purposes
8 859 311
90 762
1 179 253
889 020
137 840
33 640
147 837
61 678
Large companies
7 828 146
63 206
570 990
444 935
118 225
-
39 347
31 689
SMEs and individual
companies
1 031 165
27 556
608 263
444 085
19 615
33 640
108 490
29 989
Rest of households
27 613
5 452
8 044
12 409
-
-
-
1 087
Housing
13 767
463
-
463
-
-
-
-
Consumption
808
-
-
-
-
-
-
-
Other purposes
13 038
4 989
8 044
11 946
-
-
-
1 087
TOTAL
12 534 885
290 869
1 601 000
1 309 894
207 067
91 784
164 021
119 103
The distribution, at December 31, 2022, is the following:
Loans real guarantee: carrying amount on LTV
TOTAL
Of which
property
guarantee
Of which
other real
guarantee
Below
40%
40 – 60%
60- 80%
80 – 100%
Above
100%
Public Administrations
1 608 830
94 523
27 651
77 041
44 611
-
-
522
Other financial
corporations (financial
activity)
609 522
-
169 157
49 990
-
-
-
119 167
Non-financial corporations
(non-financial activity)
7 909 102
174 176
1 381 532
988 977
185 569
78 763
180 151
122 248
Construction / real estate
development
90 452
90 452
-
81 373
-
-
9 079
-
Civil engineering
construction
426 917
11 364
260 909
193 697
28 784
34 767
15 025
-
Other purposes
7 391 733
72 360
1 120 623
713 907
156 785
43 996
156 047
122 248
Large companies
6 187 139
53 725
485 904
331 753
110 264
13 035
39 743
44 834
SMEs and individual
companies
1 204 594
18 635
634 719
382 154
46 521
30 961
116 304
77 414
Rest of households
21 148
3 656
5 064
8 720
-
-
-
-
Housing
12 284
577
-
577
-
-
-
-
Consumption
717
-
-
-
-
-
-
-
Other purposes
8 147
3 079
5 064
8 143
-
-
-
-
TOTAL
10 148 602
272 355
1 583 404
1 124 728
230 180
78 763
180 151
241 937
61
5.8 Information on payment deferrals to suppliers
The information required by the third additional Provision of Law 15/2010, of 5 July, is detailed below:
2023
2022
(days)
Average payment period to suppliers
6,75
6,75
Ratio of paid operations
7
7
Ratio of operations payable
3,5
3,5
(thousands of Euros)
Total settled payments
32 147
30 649
Total outstanding payments
1 043
1 744
Amount paid in a period below the maximum (default regulations)
32 147
30 649
(number of invoices)
Invoices paid in a period below the maximum (default regulations)
3 236
3 160
(percentage)
Amount paid in a period below the maximum of total payments
100%
100%
Invoices paid in a period below the maximum of total invoices
100%
100%
By virtue of Law 3/2004, the maximum payment term is of 30 days, extendable if agreed by the parties,
to a limit of 60 calendar days.
The third additional provision of Law 15/2010 of 5 July, amending Law 3/2004 of 29 December,
establishing measures against late payment in commercial operations, amended by the final second
provision of Law 31/2014, of 3 December, and article 9 of Law 18/2022, of 28 September, establishes
the duty of unlisted companies that cannot present abridged annual accounts to expressly include in
the notes on their financial statements the average payment period to suppliers, the monetary volume
and number of invoices paid in a period below the maximum established by default regulations, and
their percentage over the total number of invoices and the total monetary amount of payments to
suppliers.
For the purpose of an appropriate understanding of the information contained in this note, as
established on ICAC Resolution of January 29, 2016, on information concerning late payment to
suppliers in commercial operations to be included in the Notes to annual accounts, it should be noted
that "Suppliers" are understood as those who, by nature, are trade payables due to suppliers of goods
and services.
Given the core business of the Group and, in particular, of the Institute as parent company (financial
activity), the information presented in this Note concerning late payment, is exclusively related to
payments to services suppliers and sundry suppliers to the Group, other than depositors and holders
of ICO securities. With the latter, the contractual and legal payment deadlines of both liabilities due to
demand and with deferred payment have been met dutifully. Nor is any information provided
concerning payments to suppliers excluded from the scope of this mandatory disclosure pursuant to
the provisions of the aforementioned ICAC Resolution, such as suppliers of fixed assets that are not
considered to be trade creditors. When elaborating the information above, payments corresponding
to intercompany credits and debits have been excluded.
For the purpose of elaborating this information, and based on the nature of the Group’s activities and
operations, when calculating the days of payment and outstanding payment days, the period between
the date of invoice (which in practice is usually the same as or very close to the date of receipt of the
goods or services from the supplier) and the date of actual payment or the year-end date, respectively,
has been taken into account.
5.9 Risk concentration and other specific regulations of the ICO
At December 31, 2023 and 2022, the Group is exempt from the limits on large exposures set out in
62
the applicable regulations (Part IV of EU Regulation 575/2013 and Circular 3/2008 of the Bank of
Spain, respectively), according the provisions of the bylaws of the Institute.
Royal Decree-Law 12/2012, of March 31, 2012, established the treatment of exposures to credit
institutions resident in EU Member States.
5.10 Information on construction and property development finance and associated
foreclosed properties
Regarding property risk portfolio policies and strategies, the Institute has acceptance processes with
specific policies for this type of product (e.g., experienced developers, percentages of accredited
sales, data on rental demand by independent experts), assessing the economic and financial
feasibility of projects.
Payments for certified work are subsequently validated and controlled, construction progress is
monitored and sales are controlled.
In addition, studies have been conducted to detect the reasons behind the payment difficulties of
customers that have not paid in order to suggest solutions that allow operations to be completed
successfully.
Information on construction and property development finance is as follows:
- Finance granted for construction and property development and related hedges:
2023
2022
Gross
amount
Excess over
value of
collateral
Specific
allowance
Gross amount
Excess over
value of
collateral
Specific
allowance
Property financing
403 089
-
167 216
415 527
-
182 991
Out of which doubtful
87 116
-
85 505
96 570
-
94 156
Memorandum item
Defaulted assets
-
-
-
-
-
-
Thousands of Euros
2023
2022
Memorandum item:
Total loans to clients, excluding public administrations
9 735 297
8 539 773
Total assets
31 656 823
29 774 943
Total general allowance for normal risk
379 169
192 885
Total finance for construction and property development at December 31, 2023 represents 1.27% of
the total balance sheet (1.40% at December 31, 2020).
- Finance for construction and property development (gross amounts):
-
63
Thousands of Euros
2023
2022
1 Without mortgage collateral
88 081
101 679
2 With mortgage collateral
315 008
313 849
2.1 Finished buildings
301 482
305 665
2.1.1 Homes
279 718
305 665
2.1.2 Other
21 764
-
2.2 Buildings under constructions
13 526
8 184
2.2.1 Homes
13 526
8 184
2.2.2 Other
-
-
2.3 Land
-
-
2.3.1 Developed land
-
-
2.3.2 Other land
TOTAL
403 089
415 527
- Home purchase loans:
Thousands of Euros
2023
2022
Gross
amount
Of which:
doubtful
Gross amount
Of which:
doubtful
Home loans
13 864
-
12 371
-
Without mortgage collateral
13 398
-
11 790
-
With mortgage collateral
466
-
581
-
- Home purchase loans with collateral mortgage (percentage of risk on latest appraisal
available, LTV):
At 31 December 2023:
Thousands of Euros
LTV<40%
40%<LTV<60%
60%<LTV<80%
80%<LTV<100%
LTV>100%
Gross amount
298
76
92
-
-
- Of which doubtful
At 31 December 2022:
Thousands of Euros
LTV<40%
40%<LTV<60%
60%<LTV<80%
80%<LTV<100%
LTV>100%
Gross amount
302
73
206
-
-
- Of which doubtful
- Foreclosed assets received as the settlement of debts from construction and property
development loans.
- None of the foreclosed assets on the Group’s balance sheet (Note 17) comes from financing
granted to construction companies and property developers, or mortgage loans to households
64
for home purchases, nor do they consist on equity instruments, investments and finance to
non-consolidated companies holding the assets.
5.11 Information related to Institute’s refinanced and restructured operations
Presented in the next table, there is the detailed information related to those refinanced and
restructured operations as of December 31,, 2023 and 2022 (gross amounts), as requirement of Bank
of Spain 6/2013 Circular, about financial public and reserved information rules:
At December 31, 2023 (gross amounts, in thousands of Euros):
With real
guarantee
No real
guarantee
TOTAL
amounts
TOTAL hedging
Public Administrations
-
88 082
88 082
51 844
Doubtful
-
36 844
-
36 844
Finance companies (finance assets)
-
-
-
-
Doubtful
-
-
-
-
Non Finance companies and Industrial
Business
305 617
133 667
439 284
212 913
Doubtful
197 784
32 017
229 801
195 659
Non-doubtful
-
-
-
-
Property doubtful
3 628
-
-
3 628
Rest of individuals
231
-
231
-
TOTALS
305 848
221 749
527 597
264 757
At December 31, 2022 (gross amounts, in thousands of Euros):
With real
guarantee
No real
guarantee
TOTAL
amounts
TOTAL hedging
Public Administrations
-
101 679
101 679
57 185
Doubtful
38 435
38 435
38 435
Finance companies (finance assets)
-
-
-
-
Doubtful
Non Finance companies and Industrial
Business
303 375
120 046
423 421
189 963
Doubtful
167 412
26 460
193 872
174 977
Non-doubtful
8 617
-
8 617
5 960
Property doubtful
4 822
-
4 822
4 822
Rest of individuals
229
40
269
-
TOTALS
303 604
221 765
525 369
247 148
At December 31, 2023, the total number of refinanced or restructured operations was 71 (98 at
December 31, 2022): 34 unsecured operations (46 at December 31, 2022) and 37 secured operations
(52 at December 31, 2022). Of the total number of refinanced or restructured operations, 44 are of
doubtful risk (60 at December 31, 2022).
6. CASH, DEPOSITS AT CENTRAL BANKS AND DEMAND DEPOSITS
The composition of this caption of the consolidated balance sheet at December 31, 2023 and 2022 is the
following:
65
Thousands of Euros
2023
2022
Cash at hand
7
7
Cash in Bank of Spain
2 123 983
2 557 390
Mandatory to comply with minimum reserve ratios
2 123 983
2 557 390
Other demand deposits
34 758
80 092
2 158 748
2 637 489
7. FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING
The total balances under these headings in the consolidated balance sheets at December 31, 2023
and 2022 are made up of trading derivatives.
Operations involving trading derivatives are mainly related to instruments with which the Institute
manages balance sheet positions globally, but which do not meet the requirements to be designated
hedging and are therefore classified in the trading portfolio.
Below, there is a breakdown classified by type of derivative, of the fair value of the Group’s trading
derivatives and their notional value (amount on which future payments and collections of these
derivatives are based) at December 31, 2023 and 2022:
Thousands of Euros
Notional
Assets
Liabilities
2023
2022
2023
2022
2023
2022
By type of market
Organised markets
-
-
-
-
-
-
Non – organised markets
336 743
356 337
24 197
30 637
23 610
29 714
336 743
356 337
24 197
30 637
23 610
29 714
By type of product
Swaps
336 743
356 337
24 197
30 637
23 610
29 714
336 743
356 337
24 197
30 637
23 610
29 714
By counterparty
Credit institutions
212 524
233 288
-
348
23 610
29 714
Other credit institutions
-
-
-
-
-
-
Other sectors
124 219
123 049
24 197
30 289
-
-
336 743
356 337
24 197
30 637
23 610
29 714
By type of risk
Exchange risk
253 463
221 264
22 794
30 481
22 572
29 580
Interest rate risk
83 280
135 073
1 403
156
1 038
134
336 743
356 337
24 197
30 637
23 610
29 714
The fair value has been calculated for the 100% of the cases, both in 2023 and 2022, taking the
implicit curve of the money markets and the public debt as a reference.
At December 31,
2023 and 2022 the trading portfolio classification, stated at fair value and taking the
hierarchical order into account as shown in Note 2.2.3, is as follows:
66
Thousands of Euros
2023
2022
Level I
Level II
Level III
Level I
Level II
Level III
Derivatives held for trading of assets
-
24 197
-
-
30 637
-
Derivatives held for trading of liabilities
-
23 610
-
-
29 714
-
The following chart shows amounts registered on income statements of 2023 and 2022 (Note 30) for
variations in the fair value of the Institute’s financial instruments included on the trading portfolio,
corresponding to unrealised capital gains and losses, distinguishing between financial instruments
which fair value is determined by taking as reference listings published in active markets (Level 1), is
estimated using a valuation technique which variables are obtained from data observable in the
market (Level 2) and others (Level 3):
Thousands of Euros
2023
2022
Profit
Loss
Net
Profit
Loss
Net
Level 1
-
-
-
-
-
-
Level 2
26 226
(25 286)
940
81 400
(81 141)
(259)
Level 3
-
-
-
-
-
-
In 2023 and 2022, changes in the fair value of derivatives classified as level 2 were solely the result
of purchase, sales and changes in fair value arising from the application of the valuation techniques
described, with no reclassifications between levels.
8. FINANCIAL ASSETS NOT HELD FOR TRADING OBLIGATORILY VALUED AT FAIR VALUE
THROUGH PROFIT OR LOSS
The breakdown of the amount included in this chapter, in the balance sheet at December 31, 2023
and 2022, is as follows:
Thousands of Euros
2023
2022
Equity instruments
-
-
Debt securities
-
-
At December 31, 2023 and 2022, this caption includes a debt instrument, classified as doubtful risk,
with accounting hedging of 100% (amount of 40,167 thousand Euros); therefore, it is fully recorded
as provision in both years.
In 2023, no results have been registered for the fair value valuation in the Income statement of an
amount for this concept (none in 2022) (Note 31).
9. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
The detail of this caption of the balance sheet at December 31, 2023 and 2022, per investment, is the
following:
67
Thousands of Euros
2023
2022
Equity instruments:
FONDICO Pyme (1)
119 024
106 212
FONDICO Sostenibilidad e Infraestructuras (2)
139 980
114 840
FONDICO Global (3)
1 066 870
994 168
FONDICO Next Tech (4)
126 362
20 893
FONS MEDITERRANEA FCR (5)
3 485
3 549
FONDO MARGUERITTE MEH (6)
39 041
42 019
FONDO AFS CESCE (7)
-
12 040
FEI (8)
30 246
29 627
SWIFT (9)
6
6
EDW (10)
206
194
PARTICIPACIONES GRUPO QUABIT (11)
-
-
FONDO MARGUERITTE III INVEST EU (12)
8 337
1 483
1 533 557
1 325 031
Debt securities (13)
91 001
1 135 160
1 624 558
2 460 191
The balance, net of the tax effect, of caption “Other accumulated comprehensive income” as changes
in the fair value of these financial instruments at December 31, 2023 and 2022, is the following (Note
21):
Thousands of Euros
2023
2022
Debt instruments
719
(28 313)
Equity instruments
365 729
349 635
366 448
321 322
Variations, during 2023 and 2022, in the caption of Financial assets at fair value through other
comprehensive income are shown below:
Thousands of Euros
2023
2022
Initial balance
2 460 191
2 237 145
Purchase additions
417 778
310 006
Sales and amortisations
(1 241 704)
308 000
Variations for changes in fair value (Note 21)
(11 707)
221 051
Allocation impairment provision
-
-
Variations for impairment losses (application)
-
(11)
Closing balance
1 624 558
2 460 191
(1) FONDICO Pyme. Venture capital fund constituted on May 1993 and in which the Institute is
the sole participant, managed by Axis Participaciones Empresariales. The net contribution has
been of 15,025 thousand Euros (no net contribution in 2022). The amount payable and
committed by ICO is of 61,000 thousand Euros at December 31, 2023.
(2) FONDICO Sostenibilidad e Infraestructuras. New venture capital fund constituted on 2019,
fully invested by the Institute and managed by Axis Participaciones Empresariales. In 2023,
the Institute’s net contributions amounted to 19,000 thousand Euros (net returns of 28,528
thousand Euros in 2022). The amount payable and committed by ICO is of 68,000 thousand
68
Euros at December 31, 2023.
(3) FONDICO Global. Venture capital fund created in 2014, fully invested by the Institute and
managed by Axis Participaciones Empresariales. In 2023, the Institute’s contributions
amounted to 170,000 thousand Euros (210,000 thousand Euros in 2022). In 2023, the Fund
has decreased equity through refund of contributions by 91,000 thousand Euros (247,000
thousand Euros in 2022). The amount committed by ICO and to be reimbursed amounts to
733,000 thousand Euros at December 31, 2023.
(4) FONDICO Next Tech. Venture capital fund created in 2021, wholly owned by the Institute and
managed by Axis Participaciones Empresariales. In 2023, the Institute’s contributions
amounted to 114,300 thousand Euros (24,300 thousand Euros in 2022). The amount payable
and committed by ICO is of 504,000 thousand Euros at December 31, 2023.
(5) FONS MEDITERRANEA. Fund constituted in October 2005 and in which the Institute
participates with other public and private entities. The Fund was created to invest in projects
developed by Spanish companies in the African Maghreb. No provision at December 31, 2023
(1,270 thousand Euros at December 31, 2022). No net contributions in 2023 or 2022.
(6) FONDO MARGUERITTE MEH. With the participation of leading European public credit
institutions, this is a European equity fund which seeks to promote investment in
infrastructures, in order to implement the key policies of the European Union in the fight against
climate change, with the aim of combining the principle of return to investors based on market
policies and the objectives set by public policies. The Fund is managed by ICO, although the
final result from its eventual liquidation would not affect the Institute’s balance sheet, since it
is fully guaranteed by the Spanish Ministry of Finance, which provides funds to finance the
Fund. In 2023, no contributions were made (630 thousand Euros in 2022), and returns of
participations were made for an amount of 986 thousand Euros (no returns in 2022).
(7) FONDO AFS CESCE. Participation of 9.96% in Fondo AFS Sicav, which main activity is the
discount of commercial invoices with CESCE guarantee. In 2023, the Institute sold this
investment, generating results of 287 thousand Euros (Note 28). In 2022, contributions
amounted to 1,500 thousand Euros, with no refunds.
(8) FEI. Participation equal to 0.66% of the total of the European Investment Fund, at December
31, 2023 (0.66% at December 31, 2022). There have not been net contributions at 2023 or at
2022. At December 31, 2023, an amount remained payable by 38,933 thousand Euros.
(9) SWIFT. Participation of the Institute in 1 share of this entity as a full member of the same from
2008.
(10) EDW. A 3.57% participation in European Datawarehouse GmbHG, from March 2012.
(11) PARTICIPACIONES GRUPO QUABIT. In 2019, as payment for several loan operations, ICO
foreclosed several shares of QUABIT group, for a foreclosure amount of 5,700 thousand
Euros. These shares are fully covered by accounting provisions, and therefore their net value
is null (provision of 3,735 thousand Euros at December 31, 2023).
(12) FONDO MARGUERITTE III INVEST EU. At the end of 2022, ICO acquired shares in this
fund, for an amount of 1,483 thousand Euros, as Implementing Partner of the European
Commission, within InvestEU, the European Commission’s Guarantee Programme. This
investment is guaranteed by the EC to ICO by 50%.
69
(13) As part of its liquidity management policy and business models, the ICO is able to invest in
debt instruments, classified as financial assets at fair value through other comprehensive
income. In general, they are fixed income securities, issued by the State (Public Debt).
The detail of these assets per maturities is the following:
Thousands of Euros
2023
2022
Maturity up to 1 year
-
448 520
Maturity from 1 to 2 years
70 590
531 671
Maturity from 2 to 3 years
20 411
154 969
Maturity over 3 years
-
-
91 001
1 135 160
At December 31, 2023 and 2022, the classification of financial assets at fair value through other
comprehensive income, taking the hierarchical level into account as shown in Note 2.2.3., is as
follows:
Thousands of Euros
2023
2022
Level I
Level II
Level III
Level I
Level II
Level III
Debt securities
91 001
1 135 160
Equity instruments
1 533 557
1 325 031
During 2023, the Institute has registered on the income statement results from the write-off of financial
assets at fair value through other comprehensive income for these assets, for an amount of 21,233
thousand Euros (Note 29), which were reclassified from equity to the extent that they were measured
at fair value at the time of sale. In 2022, there were no disposals with an impact on the income
statement.
10. FINANCIAL ASSETS AT AMORTISED COST
The composition of this caption on the consolidated balance sheets at December 31, 2023 and 2022
is the following (including impairment losses and other valuation adjustments):
Thousands of Euros
2023
2022
Debt securities (Note 10.1)
6 302 584
6 781 025
Loans and advances:
20 901 994
17 085 646
Credit institutions (Note 10.2)
8 300 598
6 911 989
Customers (Note 10.3)
12 601 396
10 173 657
27 204 578
23 866 671
The variation of impairment losses registered for the credit risk coverage and their accumulated
amount at the beginning and closing of 2023 and 2022 of the portfolio of financial assets at amortised
cost has been the following:
70
Thousands of Euros
Provision for
Country risk
Provision for
doubtful risk
and normal risk
in watch-list
Provision for
normal risk
Total
Balance at 1 January 2022
897
499 733
145 886
646 516
Allocations charged to results
1 025
26 894
47 562
75 481
Recoveries against results
-
(56 818)
(475)
(57 293)
Application of funds
(16 077)
(16 077)
Other variations
Adjustments for exchange differences
(3)
(97)
(88)
(188)
Balance at 31 December 2022
1 919
453 635
192 885
648 439
Allocations charged to results
2 904
137 562
2 881
143 347
Recoveries against results
(35)
(50 439)
(30 946)
(81 420)
Application of funds
(8 771)
(8 771)
Other variations
Adjustments for exchange differences
(84)
339
(25)
230
Balance at 31 December 2023
4 704
532 326
164 795
701 825
The following table details provisions for doubtful risks and normal risks in watch-list based on
determination criteria:
Thousands of Euros
2023
2022
Provision for doubtful risks (with defaults):
421 942
328 666
Default
24 386
16 456
Other than default
397 556
312 210
Provision for normal risk in watch-list
110 384
124 969
TOTALS
532 326
453 635
The provision for normal risk in watch-list corresponds to credit assets for an amount of 544,623
thousand Euros at December 31, 2023 (626,319 thousand Euros at December 31, 2022).
The table below provides a breakdown of financial assets classified as loans and receivables
considered impaired due to their credit risk at December 31, 2023 and 2022, by counterparty and
period elapsed from the amount unpaid at said dates and the age of the risk. Impaired assets
guaranteed by the State are disclosed in Note 10.3.
Impaired assets at 31 December 2023
Thousands of Euros
Without
delay
3-6
month
s
6-9
months
9-12
months
12-15
months
15-18
months
18-21
month
s
More than
21 months
TOTAL
By counterparty category -
Non-financial companies
472 560
-
-
-
42 612
-
350
24035
539 557
Impaired assets at 31 December 2022
Thousands of Euros
Without
delay
3-6
month
s
6-9
months
9-12
months
12-15
months
15-18
months
18-21
month
s
More than
21 months
TOTAL
By counterparty category -
Non-financial companies
359 189
421
-
-
-
-
-
16 162
375 772
71
As of December 31, 2022 there is a balance of assets with country risk of 240,259 thousand Euros,
with a hedging per country risk of 4,704 thousand Euros (91,641 thousand Euros at December 31,
2022 with a hedging of 1,919 thousand Euros).
The amount of non-impaired past due assets for 2023 and 2022 was of 45,458 thousand Euros and
32,339 thousand Euros, respectively, with an age in both years of between one and three months.
The movement of the impaired financial assets derecognised from the asset when their recovery is
deemed to be remote (failed) is as follows:
Thousands of Euros
2023
2022
Opening balance
1 461 682
1 525 753
Additions:
1 983
1 392
Balance recovery
-
1 392
Other causes
1 983
-
Recoveries:
(86 125)
(67 686)
Cash collection without additional financing
(73 434)
(41 656)
Asset allocation
-
-
Others
(12 691)
(26 030)
Definitive write-offs: other causes:
-
-
Net variation for exchange difference
(1 325)
2 223
Closing balance
1 376 215
1 461 682
The net amount included on the accompanying consolidated income statement of 2023 and 2022 as
a consequence of the variation of assets which recovery is deemed remote (failed assets) amounts
to profits by 73,434 thousand Euros and 41,656 thousand Euros, respectively (caption “Impairment
or reversal of impairment on financial assets not measured at fair value through profit or loss and net
profit or loss for modification”).
10.1 Debt securities
The caption “Debt securities” includes the amount of fixed-income financial assets valued at amortised
cost, and supported with securities.
At the end of 2013, the Institute’s Operations Committee approved the document Annex V to the ICO
Contract Mediation lines framework 2015, to regulate the conditions and operations to which the
conversion operation is subject to the conversion to bonds of loans made by Entities in ICO lines in
2015. Such approval included the general specifications for conversion susceptible lines, amounts,
interest accruals, eligible entities, schedule and compensation to credit institutions were included.
Debt securities resulting from the conversion of loans mediation are also included in the heading “Debt
securities”.
The composition of this caption of the consolidated balance sheet at December 31, 2023 and 2022,
based on the counterparty category, is the following:
Thousands of Euros
2023
2022
Per counterparty category -
Resident Public Administrations
3 585 044
4 537 261
Resident Credit Institutions
1 193
2 270
Other resident sectors
2 539 761
2 034 102
Other non-resident sectors
176 586
207 392
6 302 584
6 781 025
72
The detail per maturity terms at December 31, 2023 and 2022 is the following:
Thousands of Euros
2023
2022
Per maturity
Up to 1 year
850 743
1 552 664
From 1 to 2 years
806 189
303 174
From 2 to 3 years
415 084
548 999
From 3 to 4 years
2 037 649
331 955
From 4 to 5 years
1 202 335
2 024 225
More than 5 years
990 584
2 020 008
6 302 584
6 781 025
At December 31, 2023, these assets accrued an annual interest rate of 2.42% (0.92% at December
31, 2022).
Interest accrued by these assets in 2023 and 2022 amounted to 145,325 thousand Euros and 60,526
thousand Euros, respectively, included under caption “Interests and similar income” of the
accompanying consolidated income statement (Note 24).
The Institute has coverage for credit risk at December 31, 2023 (normal risk) of 40,420 thousand
Euros for these assets (42,522 thousand Euros at December 31, 2022).
Variations undergone during 2023 and 2022 in caption of Debt securities at amortised cost are the
following:
Thousands of Euros
2023
2022
Opening balance
6 781 025
6 889 673
Purchase additions
3 677 545
6 003 297
Variations for impairment losses
2 102
(20 870)
Amortisations and sales
(4 158 088)
(6 091 075)
Closing balance
6 302 584
6 781 025
At December 31, 2023, the Institute has not registered results from financial operations derived from
the write-off of assets included in the caption of “Debt securities” for an amount of losses of 500
thousand Euros (profits of 172 thousand Euros at December 31, 2022) (Note 29).
10.2 Loans and advances to Credit Institutions
The composition of this caption of the consolidated balance sheet at December 31, 2023 and 2022 is
the following:
Thousands of Euros
2023
2022
By nature -
Deposits in credit institutions (Note 10.2.1)
1 441 534
661 014
National mediation loans (Note 10.2.2)
5 721 898
5 184 441
International mediation loans (Note 10.2.3)
1 089 129
1 051 361
Other loans to credit institutions (Note 10.2.4)
1 722
3 819
8 254 283
6 900 635
Impairment losses
(4 738)
(4 006)
Other valuation adjustments (interests and financial fees)
51 053
15 360
8 300 598
6 911 989
73
10.2.1 Deposits in credit institutions
The following table details the balance of “Deposits in credit institutions”, grouped by maturity, at
December 31, 2023 and 2022:
Thousands of Euros
2023
2022
Up to 1 year
1 441 534
661 014
From 1 to 2 years
-
-
From 2 to 3 years
-
-
From 3 to 4 years
-
-
From 4 to 5 years
-
-
More than 5 years
-
-
1 441 534
661 014
During 2023, the caption “Deposits in credit institutions” accrued an average annual interest of 3.96%
(0.77% during 2022). All deposits included are time deposits as of December 31, 2023 and 2022.
Interests accrued during 2023 and 2022 for these loans have amounted a total of 44,093 and 4,475
thousand Euros, respectively, which are included under the heading “Interest and similar charges” of
the consolidated income statement (Note 24).
10.2.2 National mediation loans
These operations in the Group, implanted since 1993, has the aim to help finance small and medium
enterprises in the national territory. These lines are instrumented through loans granted by the
Institute to various credit institutions, which formalise loans with the respective companies. Thus, each
year, different lines are approved for different amounts and objectives, always focusing on the Spanish
SMEs.
In general, in these lines, the Group does not assume any risk of insolvency of final borrowers.
Occasionally, the ICO, as the Group’s parent company, assumed a part of the risk in certain liquidity
lines 2009-2012, with no risk exposure at December 31, 2023 and 2022. During the years 2023 and
2022 no new lines have been approved in which the Institute assumes risk from final borrowers.
The detail of the balance of national mediation loans at December 31, 2023 and 2022 per years of
maturity is the following:
Thousands of Euros
2023
2022
Up to 1 year
1 459 317
1 510 188
From 1 to 2 years
1 160 827
1 121 629
From 2 to 3 years
964 558
785 381
From 3 to 4 years
726 814
579 293
From 4 to 5 years
577 823
391 803
More than 5 years
832 559
796 147
5 721 898
5 184 441
At December 31, 2023 and 2022, mediation loans accrued an annual average interest rate of 2.80%
and 0.95%, respectively.
Interests accrued during 2023 and 2022 for national mediation loans have amounted to 112,653 and
39,592 thousand Euros, respectively, included on caption “Interests and similar income” of the
consolidated income statement (Note 24).
10.2.3 International mediation loans
International mediation loans are a new activity in the Group, launched in 2018, in order to support
74
the internationalisation of the Spanish company through financing banks, instead of through
investment.
The detail of the balance of international mediation loans at December 31, 2023 and 2022 detailed
per years of maturity is the following:
Thousands of Euros
2023
2022
Up to 1 year
253 785
205 045
From 1 to 2 years
148 156
209 092
From 2 to 3 years
111 496
109 576
From 3 to 4 years
90 884
88 025
From 4 to 5 years
87 376
61 890
More than 5 years
397 432
377 733
1 089 129
1 051 361
At December 31, 2023 and 2022, international mediation loans accrued an annual average interest
rate of 2.80% and 0.95%, respectively.
Interests accrued during 2023 and 2022 by international mediation loans have amounted to 61,812
thousand Euros and 21,981 thousand Euros, respectively, which are included in the caption "Interests
and similar income” of the consolidated income statement (Note 24).
This caption includes an amount of impairment losses, for risk of bad debt (normal credit risk and
country risk), for a total amount of 4,739 thousand Euros at December 31, 2023 (4,006 thousand
Euros at December 31, 2022) (Note 10.2).
10.2.4 Other loans to credit institutions
This caption includes balances for direct loan operations (without mediation) to credit institutions,
resident and non-resident.
The detail of the balance of these loans at December 31, 2023 and 2022 detailed per years of maturity
is the following:
Thousands of Euros
2023
2022
Up to 1 year
1 722
2 539
From 1 to 2 years
-
1 280
From 2 to 3 years
-
-
From 3 to 4 years
-
-
From 4 to 5 years
-
-
More than 5 years
-
-
1 722
3 819
At December 31, 2023 and 2022, loans to credit institutions accrued an annual average interest rate
of 6.46% and 0.33%, respectively.
Interests accrued during 2023 and 2022 by these loans have amounted to 195 thousand Euros and
22 thousand Euros, respectively, included on caption “Interests and similar income” of the
75
consolidated income statement (Note 24).
10.3 Customer loans and advances
The composition of this caption of the consolidated balance sheet at December 31, 2023 and 2022,
based on the counterparty category, is the following:
Thousands of Euros
2023
2022
Counterparty category -
Resident Public Administrations
2 898 361
1 639 593
Non-resident Public Administrations
20 551
89 852
Other resident sectors
8 514 519
7 285 523
Other non-resident sectors
1 699 033
1 703 318
Other financial assets
66 511
25 055
13 198 975
10 743 341
Impairment losses
(656 667)
(601 911)
Other valuation adjustments (interests accrued and commissions)
59 088
32 227
12 601 396
10 173 657
The value of certain investments in some Economic Interest Groupings is included in “Other resident
sectors” (115 thousand Euros at December 31, 2023 and 20,965 thousand Euros at December 31,
2022) considering that are assured-return structures. Profitability of these shares has a fiscal-financial
component due to the fact that these entities negative taxable bases are included in the parent entity’s
taxable base. In order to adjust the fiscal-financial profits obtained along with the final result
determined for the investment, a provision is registered annually on the Income tax heading in the
consolidated income statement (13,565 thousand Euros at December 31, 2023, 22,707 thousand
Euros at December 31, 2022) (Notes 19 and 23).
Interests accrued, during 2023 and 2022, for these loans have amounted to 536,634 thousand Euros
and 181,789 thousand Euros, respectively, which are included on caption "Interests and similar
income” of the consolidated income statement (Note 24).
Of the above balances, information is provided below regarding operations guaranteed by the Public
Sector, set out by counterparty and type of instrument, included under “Other resident sectors” and
“Resident Public Administrations”, which are classified under the heading ‘Customer loans and
advances’ at December 31, 2023 and 2022:
Thousands of Euros
2023
2022
Balances included under “Resident Public Administrations”
Loans to the national government
2 267 730
1 010 415
Loans to regional governments
630 631
629 178
Valuation adjustments
(119 380)
(120 789)
2 778 981
1 518 804
Balances included under “Other resident sectors”
Doubtful assets
4 733
5 294
Loans to other public entities
2 206 203
1 888 578
Loans to other sectors
431 916
161 751
2 642 852
2 055 623
Total operations guaranteed by the State
5 421 833
3 574 427
76
The breakdown of “Loans to the national government”, excluding valuation adjustments, is as follows
at December 31, 2023 and 2022:
Thousands of Euros
2023
2022
Loans to the State and its Autonomous Entities
2 267 615
1 008 901
Accounts receivable from the Public Treasury
115
1 514
2 267 730
1 010 415
The caption of “Accounts receivable from the Public Treasury” includes amounts liquidated by the
Group to the Public Treasury, pending from being effective under the concept of Subsidiaries, for the
adjustment of interest rates differentials in mediation loans. These accounts, which are carried at their
nominal value, do not accrue any interest.
Interest and similar income contributed to the consolidated profit and loss by public sector entities for
2023 and 2022 (Note 24) are the following:
Thousands of Euros
2023
2022
Central government
Regional governments
Other public sector entities
74 756
22 337
59 485
9 322
4 613
20 162
156 578
34 097
The breakdown of the main amounts of loans included under the heading ‘Customer loans and
advances’, including measurement adjustments, and set out by maturity date at December 31, 2023
and 2022, is as follows:
Thousands of Euros
2023
2022
Maturities
Up to 1 year
3 031 158
1 489 245
From 1 to 2 years
1 267 414
1 344 673
From 2 to 3 years
1 188 015
1 262 703
From 3 to 4 years
1 346 261
1 154 056
From 4 to 5 years
1 461 361
1 270 986
More than 5 years
4 963 854
4 253 905
13 258 063
10 775 568
At December 31, 2023 and 2022, loans to clients accrued an annual average interest rate of 4.64%
and 1.58%, respectively.
At December 31, 2023, the Group has not registered profits or losses on the consolidated income
statement for financial operations derived from the write-off of assets included on caption “Loans and
receivables” (neither at December 31, 2022) (Note 29).
11. HEDGING DERIVATIVES
This caption in the accompanying consolidated balance sheet records the hedging instruments carried
at fair value in accordance with the explanation provided in Note 2.3.
77
Derivatives contracted and the hedged items were fundamentally the following:
- Interest-rate swaps, which hedge financial instruments remunerated at a rate other than the
Euribor, mainly issues from the Group.
- Exchange hedges, which cover changes in fair value and cash flows relating to several
financial instruments.
Measurement methods used to determine the fair value of derivatives have been the discounted-
cash-flow method, to measure interest rate derivatives and exchange risk derivatives.
Total notional values of derivatives and fair values of financial derivatives designated as “Hedging
derivatives” at December 31, 2023 and 2022, by counterparty and risk (all contracted in non-organised
OTC markets), are as follows:
Thousands of Euros
Notional
Assets
Liabilities
2023
2022
2023
2022
2023
2022
By type of hedging
Fair value hedges
9 783 753
6 240 506
216 605
348 572
246 493
200 090
Cash flow hedges
5 527 622
4 709 662
86 167
90 250
337 303
365 529
15 311 375
10 950 168
302 772
438 822
583 796
565 619
By type of product
Swaps
15 311 375
10 950 168
302 772
438 822
583 796
565 619
15 311 375
10 950 168
302 772
438 822
583 796
565 619
By counterparty
Credit institutions
15 311 375
10 950 168
302 772
438 822
583 796
565 619
15 311 375
10 950 168
302 772
438 822
583 796
565 619
By type of risk
Risk of exchange
8 886 785
5 780 660
171 913
191 002
442 136
319 081
Interest rate risk
6 424 590
5 169 508
130 859
247 820
141 660
246 538
15 311 375
10 950 168
302 772
438 822
583 796
565 619
At December 31, 2023 and 2022, the classification of hedging derivatives, valued at fair value, based
on level hierarchies established on Note 2.2.3., is the following:
Thousands of Euros
2023
2022
Level I
Level II
Level III
Level I
Level II
Level III
Assets hedging derivatives
-
302 772
-
-
438 822
-
Liabilities hedging derivatives
-
583 796
-
-
565 619
-
The fair value of these items has been calculated in 100% of the cases, both in 2022 and in 2020,
taking as reference the implicit curves of the money.
Once the IFRS 13 of January 1, 2013 has become effective, the Group included for the derivative
instruments valuation, the corresponding risk valuation adjustments from counterparties and its own
(Notes 7 and 30).
12. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES
The variation of this caption of the consolidated balance sheets during 2023 and 2022 is the following:
78
Thousands of Euros
Associates
Balance at 1 January 2022
76 277
Additions
4 867
Withdrawals
-
Other variations
3 420
Impairment
-
Balance at 31 December 2022
84 564
Additions
-
Withdrawals
-
Other variations
4 922
Impairment
-
Balance at 31 December 2023
89 486
Annex I contains a breakdown of shareholdings, as well as the most relevant information regarding
these interests at December 31, 2023 and 2022.
The caption “Other variations” includes consolidation adjustments.
13. PROPERTY, PLANT AND EQUIPMENT
The variation during 2023 and 2022 in accounts of property, plant and equipment and their
corresponding accumulated amortisation, has been the following (in thousands of Euros).
79
Buildings of own
use
Furniture, vehicle
and other assets
Total
Cost
Balances at 1 January 2023
115 950
16 384
132 334
Additions
1 255
215
1 470
Disposals and other write-offs
-
-
Balances at 31 December 2023
117 205
16 599
133 804
Accumulated amortisation -
Balances at 1 January 2023
40 239
8 355
48 594
Allocations
1 934
334
2 268
Transfers and other variations
-
-
-
Balances at 31 December 2023
42 173
8 689
50 862
Impairment losses
At 31 December 2023
-
651
651
Net property, plant and equipment
Balances at 31 December 2023
75 032
7 259
82 291
Cost
Balances at 1 January 2022
114 933
16 785
131 718
Additions
1 017
194
1 211
Disposals and other write-offs
(595)
(595)
Balances at 31 December 2022
115 950
16 384
132 334
Accumulated amortisation -
Balances at 1 January 2022
38 425
8 597
47 022
Allocations
1 814
758
2 572
Transfers and other variations
(1 000)
(1 000)
Balances at 31 December 2022
40 239
8 355
48 594
Impairment losses
At 31 December 2022
-
651
651
Net property, plant and equipment
Balances at 31 December 2022
75 711
7 378
83 089
At December 31, 2023, there are fully-depreciated property, plant and equipment for own use for a
gross amount of 20,304 thousand Euros (19,673 thousand Euros at December 31, 2022).
In compliance with Institute’s policy, all property, plant and equipment are insured at December 31,
2023 and 2022.
Transitional Provision One, section B).6 of Bank of Spain Circular 4/2004, allows any asset recorded
under Property, plant and equipment to be carried at its fair value. To implement this measurement
adjustment, the Group carried out the relevant appraisals of property used in operations, which
allowed the value of the Group’s property, plant and equipment to be increased by 53,106 thousand
Euros. A restatement reserve was recorded for the resulting capital gain, net of the tax effect. The
restated book value will be applied as an attributed cost at that date.
The revaluation reserve at December 31, 2023 amounted to 17,216 thousand Euros (18,026 thousand
Euros at December 31, 2022) (Note 20).
The table below presents the fair value of certain items of the entity’s property, plant and equipment
at December 31, 2023 and 2022 by category, along with the related carrying amounts at those dates:
80
Thousands of Euros
2023
2022
Carrying value
Fair value
Carrying value
Fair value
Property, plant and equipment for own use
82 291
113 023
83 089
113 025
Buildings
74 577
105 192
75 256
105 192
Other
7 259
7 376
7 378
7 378
Fixed assets under construction
455
455
455
455
The fair value of property, plant and equipment in the preceding table was estimated as follows:
- For those assets for which an updated appraisal by a Bank of Spain-approved value is not
available, fair value was determined based on estimates made by the entity using market data
relating to trends in prices of similar assets.
- For those assets for which an updated appraisal by a Bank of Spain-approved value is
available, fair value was determined based on the appraisal as provided for in the Ministerial
Order 805/2003.
All properties for own use were appraised by a Bank of Spain approved appraiser using the
comparison approach, at December 31, 2023 and 2022.
14. INTANGIBLE ASSETS
The breakdown of Intangible assets in the consolidated balance sheet at December 31, 2023 and
2022 relates exclusively to the account named ‘other intangible assets’.
Thousands of Euros
Estimated useful life
2023
2022
With indefinite useful life
-
-
With defined useful life
3 to 10 years
56 265
52 406
Gross total
56 265
52 406
Of which:
Internal developments
3 years
44 940
46 215
Remainder
10 years
11 325
6 191
Accumulated depreciation
(45 788)
(43 403)
Impairment losses
(2 137)
(2 137)
8 340
6 866
All intangible assets at December 31, 2023 and 2022 related to computer software. Fully amortised
intangible assets at December 31, 2023 amounted to 44,773 thousand Euros (42,097 thousand Euros
at December 31, 2022).
15. TAX ASSETS AND TAX LIABILITIES
81
Thousands of Euros
Assets
Liabilities
2023
2022
2023
2022
Current taxes:
22 236
4 330
1 439
1 493
Corporate income tax (Note 23)
21 577
3 847
-
-
VAT
659
483
24
31
Personal income tax withholdings
-
-
971
1 041
Social Security contributions
-
-
444
421
Deferred taxes:
148 970
174 345
172 981
153 641
Impairment losses on credits, loans and discounts
73 629
91 761
-
-
Measurement of cash-flow hedges (Note 21)
75 341
82 584
-
-
Restatement of property
-
-
15 932
15 932
Restatement of financial assets at fair value through OCI (Note 21)
-
-
157 049
137 709
171 206
178 675
174 420
155 134
Variations undergone, during 2023 and 2022, on balances of deferred tax assets and liabilities are
shown below:
Thousands of Euros
Assets
Liabilities
2023
2022
2023
2022
Opening balance
174 345
152 470
153 641
75 159
Impairment losses on credits, loans and discounts
(18 132)
9 976
-
-
Valuation of cash flow hedges (Note 21)
(7 243)
11 899
-
-
Restatement of property
-
-
-
-
Restatement of financial assets held for sale (Note 21)
-
-
19 340
78 482
Closing balance
148 970
174 345
172 981
153 641
16. OTHER ASSETS AND OTHER LIABILITIES
The composition of this caption in the consolidated balance sheet at December 31, 2023 and 2022 is
the following:
Thousands of Euros
OTHER ASSETS
2023
2022
Other assets
7 258
5 108
Accruals
15 869
10 798
23 127
15 906
The heading “Accruals” includes, among other items, the accrual of fees receivable by the Institute,
for the Management of Operational mechanisms Fund for the Financing of Payments to Suppliers
and operational management of Autonomous Region Liquidity Fund and for the operational
management of the Financing Fund to Autonomous Communities (Note 1.1). In 2023, the overall
amount of these fees receivable for ICO is 5 million Euros per year (5 million Euros at December 31,
2022), also recorded in the accompanying consolidated income statement for these amounts within
the section of 'Fee and commission income'“ (Note 27).
This caption also includes commissions paid by the ICO for the COVID guarantee of operations owned
by the Institute (paid to the Fund RDL 12/95, by virtue of applicable regulations) and to be accrued in
the Institute’s income statement (1,690 thousand Euros at December 31, 2023 and 2,141 thousand
Euros at December 31, 2022).
The composition of the balance of “Other liabilities” of the balance sheet at December 31, 2023 and
2022 is the following:
82
OTHER LIABILITIES
Thousands of Euros
2023
2022
Other liabilities
1 299
1 235
Accruals
55 958
63 331
57 257
64 566
Under the heading “Accruals” includes the amounts accrued and unpaid, for commissions to be paid
to credit institutions by the concepts of “rappel 2023 mediation lines” by 2,000 thousand Euros (750
thousand Euros in 2022). It also includes fees for the management of COVID and UKRAINE sureties,
17. NON-CURRENT ASSETS AND DISPOSABLE GROUPS OF ITEMS CLASSIFIED AS HELD
FOR SALE
The totality of the balance in this caption corresponds to foreclosed assets. None of these foreclosed
assets recorded on this heading at December 31, 2022 and December 31, 2020 comes from any
funding related neither to Property development land nor to any other property development business.
Movements for years 2023 and 2022 in the balances under this balance sheet heading are shown
below:
Thousands of Euros
Cost
Impairment
Total
Balance at 1 January 2022
62 604
(62 604)
-
Additions
1 882
(1 882)
-
Withdrawals/Applications
(4 026)
4 026
-
Transfers
Balance at 31 December 2022
60 460
(60 460)
-
Additions
4
(4)
-
Withdrawals/Applications
(48 662)
48 662
-
Transfers
Balance at 31 December 2023
11 802
(11 802)
-
In 2023, impairment allocations of these non-financial assets have been registered, for an amount of
4 thousand Euros (1.882 thousand Euros in 2022), registered in the caption “Profit (loss) on non-
current assets and disposal groups classified as held for sale not qualifying as discontinued
operations” in the accompanying consolidated income statements.
In 2023, results from the sale of non-current assets held for sale were registered, for an amount of
2,764 thousand Euros (1,468 thousand Euros in 2022).
The Institute’s Board of Directors body gives its approval annually to the Disinvestment Plan referred
to these assets.
Pursuant to the standard 60th of Circular 4/2017 of the Bank of Spain, non-current assets held for
sale are classified into broad categories: soil, urban and urbanising splitting rustic and constructions,
83
distinguishing between residential, industrial and commercial uses. On the following chart are
included Appraisal Companies, its methodology to appraise the assets and the amount given to each
of it (company/agency):
RESIDENTIAL USE BUILDINGS
Thousands of € last
appraisal
Appraiser
Appraisal methodology
6
ALIA TASACIONES
COMPARISON
31
COHISPANIA
COMPARISON
1,497
EUROVALORACIONES
COMPARISON
140
EUROVALORACIONES
COST
7
GESVALT
RENT UPDATE
9
GESVALT
COMPARISON
150
GRUPO TASVALOR
COMPARISON
1,840
TERTIARY USE BUILDINGS
Thousands of € last
appraisal
Appraiser
Appraisal methodology
79
EUROVALORACIONES
COMPARISON
30
EUROVALORACIONES
RESIDUAL DYNAMIC
109
RUSTIC LAND
Thousands of € last
appraisal
Appraiser
Appraisal methodology
32
EUROVALORACIONES
RENT UPDATE
119
EUROVALORACIONES
COMPARISON
4
GRUPO TASVALOR
COMPARISON
155
URBAN AND DEVELOPABLE LANDS
Thousands of € last
appraisal
Appraiser
Appraisal methodology
3,997
EUROVALORACIONES
RESIDUAL DYNAMIC
44
EUROVALORACIONES
OTHER
38
GRUPO TASVALOR
RESIDUAL DYNAMIC
4,079
TOTAL
6,183
18. FINANCIAL LIABILITIES AT AMORTISED COST
The items that make up the balances recorded under this consolidated balance sheet heading are as
follows:
84
Thousands of Euros
2023
2022
Counterparty categories
Deposits from Central Banks (Note 18.1)
327 075
2 961 320
Deposits from credit institutions (Note 18.2)
5 722 623
4 656 697
Deposits from customers (Note 18.3)
312 114
366 292
Issued debt securities (Note 18.4)
16 920 632
13 374 254
Other financial liabilities (Note 18.5)
114 263
247 302
Monetary market operations (Note 18.6)
95 702
28 174
23 492 409
21 634 039
18.1 Deposits in Central Banks
In 2019 and 2020, ICO, as parent company, responded to several LTRO and TLTRO calls from the
European Central Bank. The amount of this caption corresponds to such operations.
18.2 Deposits in credit institutions
The composition of this caption of the balance sheets at December 31, 2023 and 2022 based on the
nature of operations is the following:
Thousands of Euros
2023
2022
By nature:
Loans from the European Investment Bank
3 976 291
3 970 102
Interbank loans
194 464
159 392
Loans from other credit institutions
1 375 112
526 848
Valuation adjustments – accruals
176 756
(245)
5 722 623
4 656 097
Interbank deposits fall due within less than one year from December 31, 2023 and 2022, respectively.
Loans from the European Investment Bank present the following final repayment schedule:
Thousands of Euros
2023
2022
Up to 1 year
584 470
822 513
From 1 to 2 years
793 860
591 713
From 2 to 3 years
445 124
811 362
From 3 to 4 years
134 605
454 854
From 4 to 5 years
574 544
137 281
More than 5 years
1 443 688
1 152 379
3 976 291
3 970 102
The breakdown by maturity date of “Loans from other credit institutions” is as follows:
Thousands of Euros
2023
2022
Up to 1 year
78 750
78 750
From 1 to 2 years
78 750
78 750
From 2 to 3 years
30 000
78 750
From 3 to 4 years
492 896
30 000
From 4 to 5 years
500 000
198 760
More than 5 years
194 716
61 838
1 375 112
526 848
85
18.3 Customer deposits
The composition of this caption of the consolidated balance sheets at December 31, 2023 and 2022
based on the sector is the following:
Thousands of Euros
2023
2022
By counterparty category
Public Administrations
297 690
348 650
Other resident sector (1)
12 566
17 131
Other non-resident sectors
-
-
Valuation adjustments – accruals
1 858
511
312 114
366 292
(1) Out of which, at December 31, 2023 and 2022, 12,566 thousand Euros and 17,131thousand Euros, respectively, were demand
accounts
At December 31, 2023 and 2022, the detail by nature of the balance registered on “Public
Administrations” is the following:
Thousands of Euros
2023
2022
Reciprocal Interest Adjustment Agreement (C.A.R.I.)
16 063
8 634
Public Administration Current Accounts and other items
281 627
340 016
297 690
348 650
18.4 Issued debt securities
The detail of this caption at December 31, 2023 and 2022 is the following:
Thousands of Euros
2023
2022
Bonds and debentures issued
16 556 039
13 351 201
Valuation adjustments (*)
364 593
23 053
16 920 632
13 374 254
(*) Including operation costs and value corrections for accounting hedging
Variations in bonds and debentures issued, during 2023 and 2022, are the following:
Thousands of Euros
2023
2022
Opening balance
13 351 201
20 070 571
Issues
24 024 547
23 490 046
Amortisations and depreciations
(20 561 661)
(30 648 144)
Exchange differences
(258 048)
438 728
Closing balance
16 556 039
13 351 201
Detailed below are debenture issues outstanding at December 31, 2023 and 2022, grouped per
86
currency:
Thousands of Euros
Number of issues
2022
2021
Currency
2023
2022
49
59
US Dollar
6 616 445
4 575 090
55
61
Euro
9 583 488
7 683 423
1
1
Swiss Franc
269 978
253 884
2
10
Australia Dollar
54 144
452 347
-
10
Pound Sterling
-
350 909
1
1
Yen
31 984
35 548
16 556 039
13 351 201
A breakdown of each issue may be consulted on the Institute's webpage (www.ico.es), as the
dominant entity of the Group, in “Investments - Issues of reference”.
In 2023, the total financial cost of debenture loans in both Euros and foreign currency recorded under
the heading ‘Interest and similar charges’ in the consolidated income statement was 878,209
thousand Euros, which is an average annual interest rate of 4.70% (2.58% with the effect of
accounting hedges). In 2022, financial costs amounted 562,607 thousand Euros, which was an
average annual interest rate of 3.65% (0.51% with accounting hedges) (Note 25).
As of 2023, the Institute has not recorded results for financial operations derived from the repurchase
of financial liabilities at amortised cost (profits of 947 thousand Euros in 2022), included on caption
'Gains or losses on financial assets and liabilities not measured at fair value through profit or loss’ in
the accompanying consolidated income statement (Note 29).
18.5 Other financial liabilities
The composition of this caption of the consolidated balance sheets at December 31, 2023 and 2022
is the following:
Thousands of Euros
2023
2022
Treasury Funds
94 073
170 495
Other concepts
20 190
76 807
114 263
247 302
“Treasury funds” include funds received by the Group and repayable under the attaching terms of
each. Detailed information on the lines associated with each of these funds can be found on the
Institute’s website www.ico.es .
Funds associated with the most important lines are the following:
- Línea FOMIT – Renove Turismo (FOMIT - Tourism line): this line is to provide financial support
to financial projects aimed to renovation and modernisation of infrastructure and tourist
destinations.
- Línea Préstamos Renta Universidad: this line is to guarantee a future income for postgraduate
studies as a Doctorate or a Master’s degree for 2011-2012.
- Línea Futur E: This line is to provide incentives for projects in support of sustainable tourism,
helping to redirect current tourist activity with a view to sustainability and ecological efficiency,
taking into account variables related to the environment and sustainable development, in order
87
consolidate the position of Spanish tourism at the vanguard of the rational use of energy, the
use of renewable energies, the reduction of the water footprint, and waste management.
Unlike other of the Group’s mediation lines, which are funded through market fundraising by ICO, the
financial funds designated to these operations are provided directly by the state, being instrumented
through Institute’s opened accounts on behalf of the correspondent Ministries. These funds balance,
corresponds to the amount provided by formal operations that are also listed under the heading of
‘Loans and receivables’ (net amounts, less unamortised willing), so that amount plus the balance of
the associated current account (which reflects the balance of the above lines) is always equal to the
amount received by the Institute for the provisioning of the line.
Balances at December 31, 2023 and 2022 of such funds are shown below:
Thousands of Euros
2023
2022
FOMIT – Renove Turismo
13 045
28 012
Préstamos Renta Universidad
60 888
80 717
Futur E
152
511
Others
40 178
138 062
114 263
247 302
18.6 Monetary market operations
This caption includes temporary assignments of assets, entirely securities representing Public Debt.
19. PROVISIONS
At December 31, 2023 and 2022 the detail of this caption of the accompanying consolidated balance
sheet is the following:
Thousands of Euros
2023
2022
Provisions for pensions and similar obligations
836
770
Provisions for contingent risks and commitments
50 579
59 396
Other provisions
1 530 325
1 704 654
1 581 740
1 764 820
The composition of the caption of “Other provisions” of the accompanying consolidated balance
sheets at December 31, 2023 and 2022 is the following:
Thousands of Euros
2023
2022
Fund Royal Decree – Law 12/1995
1 507 275
1 672 132
Fund for amounts recovered from BBVA
106
200
Fund Prestige Facility
8 326
8 297
Fund to compensate AIE shareholdings results (Note 10.3)
13 565
22 707
Other funds
1 053
1 318
1 530 325
1 704 654
88
Royal Decree- Law 12/1995
Royal Decree- Law 12/1995 (28 December), published in the Official State Gazette (BOE) on 30
December 1995 and taking effect on January 1, 1996, it is stipulated that Instituto de Crédito Oficial
would create, by charging the resources obtained from the State Loan referred to by Section 4.1 of
the Council of Ministers Resolution (11 December 1987), a Fund totalling a maximum of 150,253
thousands of Euros to provide provisions and charge the amounts relating to doubtful and default
loans that could arise in the future from the activities listed in Note 1, in accordance with the
regulations in force for credit institutions. Additional Provision 4 of Law 66/1997 (30 December) on
Tax, Administrative and Social Order Measures stipulated that notwithstanding the application of
these regulations, the Council of Ministers or the CDGAE could authorise the ICO to charge the
Special provision Fund established under RDL 12/1995 for any defaults arising during the course of
its business, provided that they did not receive any specific coverage in the General State Budgets.
This Fund was created in 1996 under the heading “Other Provisions”.
Those loans or operations that, in view of the relevant terms and conditions, require the application
of this Fund are provided for by charge to the same. The Group’s income statement is therefore not
affected.
Since they are already provided for through this Fund, the loans covered by the same are not therefore
included in the calculation of the general and specific bad debt provision.
The Fund is credited, in addition to the initial allocation, with future allocations that the Instituto de
Crédito Oficial makes out of profits obtained and any made or authorised by the State when assuming
or offsetting losses, or through any other appropriate system . Similarly, the Fund is credited with the
amounts of recoveries obtained from loans for which provisions have been recorded or any that have
been declared to be in default and charged against the fund, that in 2023 and 2022 amounted to 15
thousand Euros and 5 thousand Euros, respectively and the income obtained on the management of
the funds assigned to the Fund itself, in 2023 and 2022, amounted to 46,521 thousand Euros and
(7,688) thousand Euros, respectively. . In 2023, due to their nature, these yields have been recorded
in as finance costs net interest income of the income statement (in 2022 they were recorded as
provisions).
In accordance with the provisions of Law 12/1996 (30 December) on the General State Budget, in
1997 an additional 150,253 thousand Euros was allocated to this Fund by charging the Ordinary State
Loan.
In 2004 another allocation totalling 249,500 thousand Euros was charged against the State Loan
granted to ICO in accordance with the Council of Ministers Resolution dated at July 30, 2004.
As a consequence of the COVID-19 health crisis and of the implementation of the State’s surety lines
to support the private sector’s financing, the financial entities pay surety commissions to ICO which,
by virtue of procedures established for such purpose, are registered as direct credits to the Fund RDL
12/95. Also, costs for the necessary contracts entered into by the Institute to manage this activity are
also charged to the Fund RDL 12/95. The purpose of these allocations is to face future defaults that
may derive from the execution of granted sureties and which, in any case, shall not affect the
Institute’s equity (in case of insufficiency of funds, the State shall directly provide ICO with the
necessary amounts).
This fund’s variations in 2023 and 2022 included on caption of “Other provisions” of the consolidated
balance sheet at December 31, 2023 and 2022 are the following:
89
Thousands of Euros
Balance at 1 January 2022
1 316 127
Capitalisation of interests
(7 688)
State Contributions
-
Application ICO results 2021
122 960
Loan recoveries (principal and interests)
1 227
Applications
-
Credits COVID lines commissions (net of contracting expenses)
239 506
Balance at 31 December 2022
1 672 132
Capitalisation of interests
46 521
State Contributions
-
Application ICO results 2022
127 951
Loan recoveries (principal and interests)
-
Applications
(147)
Credits COVID lines commissions (net of contracting expenses)
(339 182)
Balance at 31 December 2023
1 507 275
In 2023, an extraordinary contribution to the Fund of 127,951 thousand Euros has been registered,
as part of the net profit distributed by ICO for 2022.
Fund for amounts recovered from BBVA
An additional provision Eleven of Law 24/2001 (27 December) on Tax, Administrative and Social
Order Measures, was applied by the Institute, the Group's Parent entity, in 2001 and 2002, with regard
to the heading “Funds for amounts recovered from BBVA”, to allocate part of its equity to cancel an
amount owed to the Institute by the State as a result of certain loans and guarantees granted by the
former Official Credit Institutions and secured by the State.
Nonetheless, the management of the operations affected by the cancellation process has meant that
ICO, as the Group’s parent company, continues receiving collections pertaining to these loans, which,
following the prudence accounting principle, are not generally registered as income in the income
statement. For those accounted as income, in 2023, there is a provision by 106 thousand Euros (200
thousand Euros at December 31, 2022).
Prestige Line Fund
The Prestige Line Fund has its origins in the ROL 7/2002, 22 November, which authorises to charge
on the Fund Special Provision 12/1995 ROL, the default amounts from loans Prestige line, with credit
to this fund specific provision.
Fund to offset results AIE shareholding results
Heading Fund to offset AIE shareholdings includes the provision in order to adjust its profit to the
operations performance conducted through the Economic Interest Groupings (Note 10.3). This
provision has been recognised under the rubric of corporate income tax of the accompanying
consolidated income account for an amount of 13,527 thousand Euros and 7,785 thousand Euros,
respectively in the years 2023 and 2022 (Note 23).
90
The following chart shows variations of the caption of Provisions in 2023 and 2022:
Thousands of Euros
Provision for
taxes
Fund for
pensions and
similar
obligations
Provisions for
risks and
contingent
commitments
Other
provisions
Total
Balances at 1 January 2022
-
791
48 717
1 340 866
1 390 374
Allocations
-
-
15 537
8 194
23 971
Recoveries)
-
(21)
(4 818)
-
(4 839)
Application of funds
-
-
-
-
-
Transfers and other variations (1)
-
-
-
355 594
355 594
Exchange differences
-
-
(40)
-
(40)
Balances at 31 December 2022
-
770
59 396
1 704 654
1 764 820
Allocations
-
66
6 528
5
6 599
Recoveries
-
-
(15 466)
(270)
(15 736)
Application of funds
-
-
-
(22 764)
(22 764)
Transfers and other variations (1)
-
-
-
(151 300)
(151 300)
Exchange differences
-
-
121
-
121
Balances at 31 December 2023
-
836
50 579
1 530 325
1 581 740
(1) Transfers and other movements mainly consist of net credits to the RDL 12/95 Fund for the collection of commissions /
payment and recovery of bad debts, from the COVID-19 guarantee operation (credit of 239,506 thousand Euros at December
31, 2023 and charge of 340,845 thousand Euros at December 31, 2022) and by the provision to the Fund for the
compensation of results of holdings in AIE (Note 23) (13,527 thousand Euros at December 31, 2023 and 7,785 thousand
Euros at December 31, 2022).
20. OWN FUNDS
The reconciliation of the opening and closing carrying value in 2023 and 2022 of the heading “Equity”
in the consolidated balance sheets is the following:
Thousands of Euros
Share Capital
Restatement
reserves
Other
reserves
Profit/(loss)
Total
Balance at 1 January 2022
4 314 480
19 036
962 791
139 861
5 436 168
Distribution of results
(139 861)
(139 861)
Other variations of reserves
(910)
17 955
17 045
Profit/(loss) for the period
146 832
146 832
Other variations
207
207
Balance at 31 December 2022
4 314 687
18 126
980 746
146 832
5 460 391
Distribution of results
(146 832)
(146 832)
Other variations of reserves
(910)
20 290
19 380
Profit/(loss) for the period
252 265
252 265
Other variations
214
214
Balance at 31 December 2023
4 314 901
17 216
1 001 036
252 265
5 585 418
At December 31, 2023, the line of “Distribution of results” includes an amount of 127,951 thousand
Euros (122,960 thousand Euros at December 31, 2022), as part of the distribution of previous year’s
results, for contribution to the Fund RDL 12/95 (Note 19).
91
The line of “Other variations” mainly includes the annual contribution to equity, by virtue of Law
24/2001, of 27 December, for an amount of 214 thousand Euros in 2023 (207 thousand Euros in
2022). According to the Additional Eleventh Provision of such Law, amounts recovered after the
cancellation of debts contracted by the State with the ICO, as a consequence of certain credits and
sureties granted by former Official Credit Entities and by the Institute will become part of the Institute’s
equity.
20.1 Reserves of fully or proportionally consolidated entities
The detail per consolidated companies of balances of the equity caption “Equity – Other Reserves” of
the consolidated balances sheets at December 31, 2023 and 2022, in the portion of such balance
originated from the consolidation process and excluding revaluation reserves, detailed per fully or
proportionally consolidated companies on the consolidated financial statements, is the following:
Thousands of Euros
2023
2022
AXIS Participaciones Empresariales, S.A.
28 927
29 804
Instituto de Crédito Oficial
942 575
925 172
971 502
954 976
20.2 Reserves of entities valued through the equity method
The detail per consolidated companies of balances of the equity caption “Equity – Other Reserves” of
the consolidated balance sheets at December 31, 2023 and 2022, in the portion of such balance
revealed as part of the consolidation process, detailed per company valued through the equity method
in the consolidated financial statements, is the following:
Thousands of Euros
2023
2022
COFIDES, Compañía Española de Financiación del Desarrollo, S.A.
29 479
25 715
CERSA, Compañía Española de Reafianzamiento, S.A.
55
55
Other entities
-
-
29 534
25 770
21. OTHER ACCUMULATED COMPREHENSIVE INCOME (valuation adjustments)
The balance of this caption detailed by gross and net amount of the tax effect is the following:
Thousands of Euros
2023
2022
Gross
Tax effect (Note
15)
Net
Gross
Tax effect (Note
15)
Net
Financial assets at fair value
through other comprehensive
income (Note 9)
523 497
(157 049)
366 448
459 032
(137 710)
321 322
Cash flow hedging of assets and
liabilities
(251 136)
75 341
(175 795)
(275 279)
82 584
(192 695)
TOTAL
272 361
(81 708)
190 653
183 753
(55 126)
128 627
first account records the net amount of changes in the fair value of the assets at fair value through
OCI that, in accordance with Note 2.2.4, must be included as part of the Institution's equity. The
92
second account records the net amount of changes in the fair value of the cash flow hedge
instruments.
Thousands of Euros
2023
2022
Opening balance
128 627
(26 734)
Change in fair value of financial assets at fair value through other comprehensive income
(Note 9)
45 126
183 125
Reclassification to financial assets at fair value through profit or loss
Cash flow hedges
16 900
(27 764)
Closing balance
190 653
128 627
22. GRANTED FINANCIAL GUARANTEES AND CONTINGENT COMMITMENTS
These headings in the balance sheets record the amounts that ICO, as the Group’s parent company,
must pay on behalf of third parties in the event that the obligated parties do not do so, in response to
commitments acquired during the normal course of its business (financial guarantees) and amounts
available to third parties (contingent commitments).
The detail of this caption at December 31, 2023 and 2022 is the following:
Thousands of Euros
2023
2022
Granted guarantees
Financial guarantees
553 986
557 812
553 986
557 812
Granted contingent commitments
Available by third parties:
Credit institutions
471 864
223 259
Public Administrations sector
328 191
1 966 824
Other resident sectors
1 451 115
1 029 980
Non-resident sector
549 496
337 399
Other contingent commitments
81 395
79 998
Subscribed values pending disbursement:
1 404 933
835 933
4 286 994
4 473 393
4 840 980
5 031 205
Income obtained from guarantee instruments (guarantees and other sureties) are recorded under the
heading “Commissions received” in the accompanying consolidated income statement.
23. TAX POSITION
The Institute is effectively taxed for the Corporate Income Tax, under general regime, since 1999
(previously, it was exempt, by virtue of specific regulations).
The reconciliation of the accounting Institute’s profit, as the Parent firm of ICO, as the Group’s parent
company, for 2023 and 2022 with the corporate income tax basis is as follows:
93
Thousands of Euros
2023
2022
Accounting profit before income tax
336 891
178 112
Permanent differences
Foreign taxes paid
1 049
482
Non-accounted accounting income
Tax-loss carry forwards attributed to invested companies
(58 105)
(36 023)
Deductible expenses from previous years
279 835
142 571
Temporary differences:
Due to impairment losses and provision non-deductible
13 896
67 378
Due to the reversal of temporary differences arising in other years
(74 285)
(34 128)
(60 389)
33 250
Tax assessment basis
219 446
175 821
Gross tax payable (30%)
65 834
52 746
Deductions and allowances
(802)
(395)
Withholdings and interim payments
(86 609)
(56 198)
Tax payable (Note 15)
(21 577)
(3 847)
Corporate income tax
83 149
42 376
Adjustments CIT expense allocated investees’ bases (Note 19)
13 527
7 785
Other adjustments
Corporate income tax expense
96 676
50 161
In the year, the allocation of tax losses carried forward in the AIE, in which ICO invests in different
capital proportions, is incorporated, for an amount of 58,105 thousand Euros in 2023 (allocation of tax
losses by 36,023 thousand Euros in 2022). The allocation of basis has been based on information
supplied by the entities. It was decided to allocate these concepts in the same year of the closing of
AIE’s balances.
There are no tax losses carried forward at 2023 closing.
No tax incentive deductions applied in the year 2023 nor in 2022. There is an international double tax
deduction (taxes borne) amounting to 802 thousand Euros and 395 thousand Euros, respectively.
There are not international double taxation deductions at 2023 closing.
There are no changes in the methods used to depreciate/amortise fixed assets owing to exceptional
causes.
Taxes and other tax obligations applicable to the Institute are open to inspection by the tax authorities
during last four years.
Due to the possible interpretations of tax legislation that may be afforded to some operations, basically
related to new subject ability to corporate income tax following the full exemption from the same, there
could be certain contingent tax liabilities. However, in the opinion of the Institute's tax managers, the
possibility of these liabilities crystallising is remote and in any event, the tax debt that may derive from
them would not significantly affect the accompanying annual accounts.
24. INTERESTS AND SIMILAR INCOME
The detail of interests and similar income of 2023 and 2022, based on their origin, is the following:
94
Thousands of Euros
2023
2022
Financial assets at fair value through other comprehensive income
1 226
204
Financial assets at amortised cost
Derivatives, hedge accounting
994 937
(466)
322 656
(7 876)
Other assets
1 498
254
Interests and similar income from liabilities
6 327
10 778
1 003 522
326 016
25. INTERESTS AND SIMILAR CHARGES
The detail of this caption of the income statement during 2023 and 2022 is the following:
Thousands of Euros
2023
2022
Financial liabilities at amortised cost
Derivatives, hedge accounting
Other liabilities
1 100 062
(437 877)
46 521
665 632
(487 030)
-
Interests and similar charges from assets
3 326
21 668
712 032
200 270
26. INCOME FROM DIVIDENDS
The totality of yields obtained for this concept corresponds to the variable income portfolio, for an
amount of 107 thousand Euros in 2023 (480 thousand Euros in 2022).
27. PROFIT/(LOSS) FROM ENTITIES VALUED THROUGH THE EQUITY METHOD
The totality of results from entities valued through the equity method, included on this caption of the
consolidated income statement, amounts in 2023 and 2022 to profits by 4,791 thousand Euros and
profits by 3,269 thousand Euros, respectively. Annex I includes the detail of shareholdings, as well as
their most relevant data at December 31, 2023 and 2022.
28. FEE AND COMMISSION INCOME AND EXPENSES
The detail of this caption of the consolidated income statement is the following:
Thousands of Euros
2023
2022
Commissions received
Contingent risks
8 257
6 462
Availability commissions
8 444
5 875
Management commissions COVID and UKRAINE sureties
7 726
7 482
Other commissions
51 047
42 689
75 474
62 508
Commissions paid
Signature risk
(4 816)
(5 834)
Other commissions
(4 651)
(3 191)
(9 467)
(9 025)
Net Commissions for the year
65 827
53 483
95
The heading “Other commissions” includes 5,000 thousand Euros related to commissions of the
Autonomous Communities’ Financing Fund and of the Local Entities’ Financing Fund, for the
management of both funds (5,000 thousand Euros at December 31, 2022) (Note 16). In addition,
34,122 thousand Euros of income are recorded corresponding to the fees charged by the investee
AXIS in the course of its business (30,656 thousand Euros in 2022).
29. GAINS OR LOSSES ON FINANCIAL ASSETS AND LIABILITIES NOT MEASURED AT FAIR
VALUE THROUGH PROFIT OR LOSS, NET
The detail of this caption of the accompanying consolidated income statement, based on the origin of
its items is the following:
Thousands of Euros
2023
2022
Financial assets at fair value through other comprehensive income (Note 9)
(20 946)
-
Financial assets at amortised cost, loans and receivables (Note 10.3)
(500)
-
Financial assets at amortised cost, debt securities (Note 10.1)
-
172
Financial liabilities at amortised cost (Note 18.4)
-
947
(21 446)
1 119
30. PROFIT OR LOSS ON FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING, NET
The detail of this caption of the consolidated income statement, based on the origin of its items is the
following:
Thousands of Euros
2023
2022
Trading derivatives (Note 7)
940
(259)
940
(259)
Following the entry into force of IFRS 13 (January 1, 2013), the Institute did not incorporate the
corresponding adjustment for counterparty and equity credit risk (CVA-DVA) for the valuation of the
derivative instruments. The adjustment made under this heading (including this caption) at December
31, 2023 amounts to losses of 427 thousand Euros (profits of 1,452 thousand Euros at December 31,
2022).
31. PROFIT OR LOSS FOR FINANCIAL ASSETS AND LIABILITIES DESIGNATED AT FAIR
VALUE THROUGH PROFIT OR LOSS, NET
The detail of this caption of the income statement is the following:
Thousands of Euros
2023
2022
Equity instruments at fair value through profit or loss (Note 8)
-
-
-
-
96
32. PROFIT OR LOSS RESULTING FROM HEDGE ACCOUNTING, NET
The detail of this caption of the income statement is the following:
Thousands of Euros
2023
2022
Hedging derivatives (Note 11)
45 568
44 683
45 568
44 683
This caption includes results from the variation of fair value both of hedging elements and of hedged
elements.
33. OTHER OPERATING INCOME AND EXPENSES
The detail of this caption of the consolidated income statement is the following:
Thousands of Euros
OTHER OPERATING INCOME
2023
2022
Income from exploitation of estates
507
818
Other concepts (*)
585
149
1 092
967
(*) It mainly includes expenses recovered from returns of supplies and advances performed for the management of assets by BBVA
Thousands of Euros
OTHER OPERATING EXPENSES
2023
2022
Other concepts
-
(1)
-
(1)
34. PERSONNEL COSTS
The composition of this caption of the consolidated income statement of 2023 and 2022 is the
following:
Thousands of Euros
2023
2022
Wages and salaries
20 568
18 388
Employee benefits expense
4 871
4 256
Other expenses
1 538
1 598
26 977
24 242
The number of the Group’s employees at December 31, 2023 and 2022, distributed per professional
categories and gender, has been the following:
Payroll distribution
Men
Women
2023
2022
2023
2022
Management
7
13
7
17
Managers and technicians
132
114
185
155
Administrative staff
6
6
52
49
145
133
244
221
97
The average number of the Group’s employees in 2023 and 2022, distributed per professional
categories and gender, has been the following:
Payroll average distribution
Men
Women
2023
2022
2023
2022
Management
8
13
7
16
Managers and technicians
126
108
176
152
Administrative staff
6
7
53
48
140
128
236
216
The average number of the Group’s employees, in 2023, with disability above 33% has been of 6
person (4 persons in 2022).
Remunerations and other benefits for the General Board
In 2023 and 2022, the Group recorded in the consolidated income statement 111 thousand Euros and
134 thousand Euros (on the section of “Other administration expenses”), respectively, in respect of
remuneration accrued by the members of the General Board in respect of wages, allowances and
other remunerations. These were paid to the Treasury, according to the applicable regulation law, in
the case of General Board members considered as Senior Positions in the Civil Service.
Remunerations perceived by the President and Senior Management of the Institute, as the Group’s
parent company, during 2023 and 2022, are the following:
Financial year 2023:
Salaries and wages
Thousands of Euros
Other
No. persons
Fixed
Variable
Remunerations
Thousands of
Euros
Total
Thousands of Euros
6
732
101
16
849
Financial year 2022:
Salaries and wages
Thousands of Euros
Other
No. persons
Fixed
Variable
Remunerations
Thousands of
Euros
Total
Thousands of Euros
6
720
95
18
833
At December 31, 2023 and 2022 there were no loans granted to the executive members of the
Institute’s General Board. At December 31, 2023, loans granted under internal regulations on loans
to staff, had an outstanding amount of 14,686 thousand Euros and the average interest rate was
2.51% (13,100 thousand Euros at December 31, 2022, with an average interest rate of 2.51%).
In addition, at such date, no pension or life insurance obligations had been acquired with regard to
current or former members of the General Board.
35. OTHER ADMINISTRATION EXPENSES
The detail of this caption of the consolidated income statement is the following:
98
Thousands of Euros
2023
2022
Buildings, installations and materials
1 220
973
Computers
6 251
5 409
Communications
2 469
2 210
Advertising and publicity
458
2 646
Rates and taxes
2 069
1 500
Other general administration expenses
8 399
8 360
20 866
21 098
Audit expenses
The annual accounts audit has been made by the General Intervention of the State Administration
(IGAE for its initials in Spanish). Consequently, there are no remunerations to auditors for this concept,
as they are assumed by the General Intervention (Ministry of Finance).
The amount invoiced by companies under the Mazars trademark (who audit, by virtue of a contract
formalised with the IGAE to deliver a collaboration service in the performance of the audit of the annual
accounts of 2023 and 2022), for audit-related services delivered to the ICO amounted to 11.3
thousand Euros (5.65 thousand Euros for audit services of the individual annual accounts and 5.65
thousand Euros for the consolidated accounts); the amount invoiced for non-audit services during
2023 has been of 115.9 thousand Euros, taxes not included (42.5 thousand Euros in 2022).
The amount invoiced by ERNST & YOUNG, SL, the firm auditing AXIS, for the audit of its individual
financial statements amounted to 12 thousand Euros (12 thousand Euros in 2022). In addition, 10
thousand Euros were paid in 2023 (10 thousand Euros in 2022) for the audit of the 2023 financial
statements of one of the funds managed by AXIS, which, in accordance with its management
regulations, must be paid by the managing company. No amounts have been invoiced in 2023 for
services other than the audit of accounts (none in 2022).
The amount invoiced by Mazars Auditores S.L.P. for the audit of CERSA and COFIDES, Group’s
associates, for the financial years 2023 and 2022 (i.e. the total fees relating to the audits of these
entities) amounts to 55 thousand Euros in 2023 (51 thousand Euros in 2022).
36. FAIR VALUE
As mentioned above, financial assets are recorded on the balance sheet at fair value, except for loans
and receivables and equity instruments whose market value cannot be estimated reliably.
In the same way, financial liabilities are recorded on the balance sheet at amortised cost, except those
included in the trading portfolio.
Part of the assets registered under “loans and receivables” and liabilities registered under the heading
“Financial Liabilities at amortised cost”, from the consolidated balance sheet at December 31, 2023
and 2022, are accounted at variable rate, with an annual revision of that rate, so their fair value coming
from movements of interest rates, it is not significantly different from the one registered in the Group’s
consolidated balance sheet. The fair value of these has been obtained using a weighted average
maturity and a weighted average rate through which it has proceeded to calculate the fair value using
discount flows. The value calculated for these operations at December 31, 2023 and 2022, for the
Institute as the Group’s parent company, is as follows:
99
Thousands of Euros
Carrying value
Fair value
ASSETS
2023
2022
2023
2022
Financial assets at amortised cost
27 204 578
23 866 671
27 466 132
23 994 327
LIABILITIES
Financial liabilities at amortised cost
23 548 296
21 681 827
23 628 324
21 759 973
Fair value has been calculated, in all cases, both in 2023 and in 2022, taking as reference implicit
curves in monetary and Public Debt markets.
37. OPERATIONS WITH MULTIGROUP ENTITIES AND ASSOCIATES
The Company’s balances at December 2023 and 2022 related to Joint Ventures and Associates are
as follows:
CERSA
- Deposits to customers (financial liabilities at amortised cost): 239,393 thousand Euros at
December 31, 2023 (216,988 thousand Euros at December 31, 2022).
100
INSTITUTO DE CRÉDITO OFICIAL
MANAGEMENT REPORT
Financial environment and frame of action
The Spanish economy continues to grow strongly despite the context of uncertainty at the
global level
In 2023 as a whole, the Spanish economy maintained strong economic growth (2.5%), after the
remarkable post-pandemic recovery observed in 2021 and 2022, with growth of 6.4% and 5.8%,
respectively. Spain demonstrated greater strength than its European shareholders already in 2022
and continued to lead growth in 2023, which has been particularly relevant given the context of
geopolitical tensions and weak external growth, particularly in the Eurozone, due to the impact of
restrictive monetary policy. Specifically, Spanish GDP growth in 2023 was five times higher than that
of the Eurozone average and also that of the main European economies.
Having surpassed the pre-pandemic GDP in the third quarter of 2022, and after beating the growth
forecasts for 2023, projections for 2024 and 2025 once again place Spanish growth at levels above
the rest of the major Euro Zone economies. According to the latest IMF forecasts, Spain would grow
by 1.5% in 2024 and 2.1% in 2025, compared to the estimated growth for the Euro Zone as a whole
of 0.9% and 1.7%, respectively.
Eurozone growth slowed markedly in 2023 to 0.5% from 3.3% in 2022. The impact of monetary policy
tightening, persistent inflation and geopolitical tensions would have led to this weakness in growth.
In a context of high uncertainty and lower economic growth at the international level, the Spanish
economy maintains a differential growth thanks to the dynamism of the labour market, the positive
evolution of the foreign sector, the solid assets of households and companies and the rapid
deployment of the Recovery Plan.
With regard to the labour market, job creation in Spain accelerated in 2023. According to data from
the Labour Force Survey (EPA), 783,000 jobs were created in 2023, equivalent to an increase in
employment of 3.8%, thus showing a higher rate of job creation than in 2022 (279,000 new jobs with
a growth rate of 1.4%). As a result, the number of employed persons reached an all-time high
(21,246,900). The unemployment rate continued its downward trend, standing at 11.8% in the fourth
quarter of 2023, more than one point below the rate in the fourth quarter of 2022 (12.9%), while the
number of unemployed ended 2023 at 2,830,600, 6.4% lower than in 2022 and its lowest figure at the
end of the year since 2007. In terms of the number of workers affiliated to Social Security, the data
also evolved favourably, with an increase in affiliation in 2023 of 2.7% with respect to 2022, i.e. an
increase of 539,739 affiliates, above the increase in 2022 (an increase of 2.4%, which meant 471,000
more affiliates).
Growth has also been driven by the external sector, thanks to the resilience of trade in goods, the
remarkable recovery in tourism and the dynamism of trade in non-tourism services, with the sector
making a positive contribution of 0.8 pp, although this moderated with respect to 2022; specifically, it
contributed 2.1 pp less to growth than in 2022. The favourable performance of domestic demand
contributed 1.7 percentage points (pp) to GDP growth in 2023, although its contribution moderated
by 1.2 pp with respect to the previous year. Within national demand, private consumption slowed,
although it remained strong, supported by the improvement in purchasing power and the good
performance of the labour market, while investment grew to a lesser extent than last year. By contrast,
government spending increased again in 2023, following a decline in 2022.
General inflation moderated sharply during 2023 to the lowest levels in two years. The underlying rate
(which excludes energy goods and unprocessed food as these are components with greater price
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variability) has also shown a gradual deceleration trend, to which the lower inflationary pressures in
energy prices and raw materials, the restrictive monetary policy of the European Central Bank and
the measures implemented by the Government to alleviate inflation, such as the VAT rebate on basic
foodstuffs, the fuel rebate and subsidies for public transport, the VAT rebates on electricity and gas,
among others, have contributed. In Spain, average inflation was 3.5% in 2023, correcting part of the
sharp price increase observed in 2022 (annual average 8.4%) and headline CPI ended 2023 at 3.1%
y-o-y in December. Core inflation averaged 6% for 2023 as a whole, above the average for 2022
(5.2%), and ended the year at 3.8% y-o-y in December, progressively narrowing the differential with
the headline index. In the Eurozone as a whole, inflation averaged 5.5% in 2023, higher than in Spain,
but the year-on-year inflation rate as of December was 2.9%, also reflecting the trend of decelerating
prices in the Eurozone during the year. For its part, the underlying inflation rate in December was
higher than the general index, at 3.9%, close to the Spanish rate, and has also followed a moderating
path during 2023.
Forecasts of the main organisations, both for Spain and for the Eurozone as a whole, point to a
continuation of the gradual slowdown in prices in 2024, although they would still be above the
monetary policy target and within a context marked by the high uncertainty linked, mainly, to the future
evolution of energy prices.
The ECB continued to tighten its monetary policy in 2023
The Governing Council of the European Central Bank (ECB) continued in 2023 with the process of
normalising its monetary policy that had already begun in 2022. From July 2022 until September 2023
it decided to undertake ten consecutive policy rate hikes to ensure that inflation returns to its medium-
term objective of 2%. Accordingly, the Governing Council set the main refinancing rate and the interest
rates on the marginal lending facility and the deposit facility at 4.50%, 4.75% and 4.00% respectively,
implying a cumulative increase of 450 basis points in each of the three benchmarks and bringing them
to 22-year highs.
Since September 2023, the ECB has stopped the interest rate hike cycle. The Governing Council
considers that the key ECB interest rates are at levels which, if maintained for a sufficiently long period
of time, make a substantial contribution towards achieving its objective. Looking ahead, the Governing
Council will continue to apply a data-dependent approach to determine the appropriate level and
duration of the interest rate constraint. In particular, its interest rate decisions will continue to be
supported by its assessment of the inflation outlook, taking into account new economic and financial
data, underlying inflation dynamics and the strength of monetary policy transmission.
In addition to the rate hike decisions, the Governing Council of the ECB has also implemented a
process of reducing the size of the Euro system’s balance sheet during 2023. It decided that the size
of the APP asset purchase programme portfolio would start to decrease at an average rate of 15
billion Euros per month until June 2023 and ended the reinvestment of maturing APP securities as
from July 2023. In addition, as part of this balance sheet normalisation process, the Governing Council
will start to reduce the pandemic emergency purchase programme (PEPP) portfolio in the second half
of 2024, at a rate of 7.5 billion Euros per month on average. Until then, it will continue to fully reinvest
the principal of maturing securities and plans to end reinvestments under the PEPP by the end of
2024.
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Recovery, Transformation and Resilience Plan
The Government of Spain continued to manage European funds from the Next Generation EU
(NGEU) instrument through the Recovery Plan during 2023, which has set in motion an ambitious
schedule of investments and reforms that will have a structural impact on the Spanish economy. With
a strong pace of meeting milestones and targets, Spain has received three payments from the
Recovery and Resilience Mechanism for a total of 37 billion Euros and has already formally requested
the disbursement of the fourth payment for 10 billion Euros. The pace of investment implementation
has been accelerating since the launch of the Plan, reaching the highest pace in 2022, which has
been maintained in 2023. Since the approval of the Plan in July 2021, calls for aid and tenders have
already been resolved for an amount of more than 30 billion Euros. The economic impact of the
Recovery Plan in 2023 translates into 2.5 points in the level of GDP, in line with the forecast.
In October 2023, the European Commission approved the Addendum to the Plan, a decision ratified
by the ECOFIN, and with it the second phase of the Recovery Plan, which has an additional 94.3
billion Euros, to continue strengthening strategic projects and with a special focus on the strategic
autonomy of Spain and the EU in the fields of energy, agri-food, industry, technology and digital. Part
of the mobilisation of these new funds will be carried out through the creation of funds and financial
instruments, in the implementation of which ICO plays a very prominent role. The ICO lines will involve
up to 40,000 million in loans to support SMEs in particular, strengthen investment in the green and
social sphere, as well as in key future areas in the digital transition, such as start-ups and the
audiovisual sector. In addition, the Autonomous Community Resilience Fund will be launched, with
financing of up to 20 billion Euros, which will enable sustainable investments to be made in the
Autonomous Communities, in collaboration with the European Investment Bank.
Business rates rose as a result of the prolongation of the monetary policy normalisation
process
The tightening of the ECB’s monetary policy, with interest rates rising until September, has continued
to make new financing more expensive and to weaken credit flows to households and firms during
2023. Thus, the average interest rate applied to the companies in operations of less than 1 million
Euros, which may be taken as approximation of the rate applied to SMEs, increased from 3.49% at
December 2022 to 5.11% at December 2023. This interest rate was maintained throughout the year
below the rate applied in Germany to these same operations and, also, this differential with Germany
has increased last year as a consequence of the higher rate increase in Germany. Thus, the Spanish
rate is 90 basic points below the German rate at December 2023, while at December 2022 it was of
54 basic points. In comparison with the average of the set of the Eurozone, the differential was lower,
throughout 2023, but the differential was negative every month of the year; thus, on December 2023,
the Spanish rate was 29 basic points below the European average (19 basic points at December
2022).
Interest rates for operations of a lower amount (up to 250 thousand Euros) also increased in 2023,
from 3.53% at December 2022 to 5.14% at December 2023, also remaining below the German rate
throughout the year, so that, at December, the Spanish rate was 122 basic points lower than the
German rate, representing an increase of spread from the 68 basic points of December 2022.
Additionally, the Spanish interest rate was also lower than the Eurozone rate in these operations
throughout the year, being 44 basic points lower (35 basic points at December 2022).
In terms of financial sector activity in 2023, the volume of new lending business decreased by 7.3%
compared with 2022, following an increase of 19.9% in the previous year, as a result of a stronger
pass-through of monetary policy tightening in 2023. Transactions of less than 250 thousand Euros
moderated their increase, compared with the previous year, from 15.7% in 2022 to 5.3% in 2023,
transactions of less than 1 million Euros from 14.1% in 2022 to 5.1% and transactions of more than 1
103
million Euros fell markedly, by 18.8% in 2023, compared with an increase of 25.7% in the previous
year.
The outstanding amount of total credit to enterprises declined by 2.7% in 2023 compared with 2022,
while it remained virtually stable in 2022, according to data from the Bank of Spain.
Doubtful assets remained at low levels during 2023
The doubtful assets ratio of Spanish credit institutions remained fairly stable during 2023, remaining
at the lows of December 2008. On December 2023, it stood at 3.54%, the same ratio as in December
2022. This evolution is explained by a fall in the volume of credit classified as doubtful offset by the
decline in total credit. With regard to credit to productive activities, its doubtful assets ratio stood at
4.06% in September 2023 (latest available data), lower than in September 2022 (4.43%).
Activity
The Institute continues to support the Spanish productive fabric through its wide range of products,
prioritising long-term financing, internationalisation and investments aimed at digital transformation,
sustainability and social and territorial cohesion. Thus, ICO responds to the needs and challenges
posed by the different economic scenarios in a flexible manner, in order to contribute to the
sustainable growth, the employment generation, and the wealth distribution through its three main
functions:
o National Promotion Bank: to boost the economic growth and the business activity.
o Financial Economic Policy Instrument: in order to channel the European Union (EU) funds in
their different modalities and to collaborate with Administration bodies, to transfer resources
towards the companies in order to reach economic policy and sector objectives.
o State’s Financial Agent: managing on behalf of the State different funds and instruments of a
different nature and purpose, and carrying out functions entrusted in the different economic
scenarios to provide an efficient response to the companies’ financing needs.
All of the Institute’s actions in 2023 are framed within its Strategy 2022-2027 and take as reference
the EU Financial Framework 2021-2027 and the Recovery, Transformation and Resilience Plan,
which articulate the Government’s economic policy around green and digital transition, social and
territorial cohesion and equality.
As National Promotion Bank, the Instituto has a comprehensive catalogue of bank financing
products, guarantees and complementary financing for all types of companies and entities, adapted
to their needs and aimed to boost their activity both in Spain an in international markets.
This offer is specified in different instruments designed by ICO to accompany and provide support to
Spanish companies, articulated through two fund distribution mechanisms: ICO mediation lines, in
collaboration with credit institutions operating in Spain and financing programmes and guarantees in
which the Instituto acts directly with the clients.
The financing and issue of ICO guarantees to companies, entrepreneurs and territorial administrations
during 2023 amounts to 7,530,138 thousand Euros. 33.5% of this amount (2,520,858 thousand Euros)
corresponds to credit disposals made through the different ICO mediation lines, by means of 12,115
operations; 63% aimed to micro-SMEs (companies up to nine workers) and 31% correspond to loans
for an amount equal or below 25,000 Euros.
There are two differentiated strategic areas of action in the mediation activity:
104
o National: to finance business activities and investment projects related to the activity in Spain.
In 2023, 11,250 operations have been granted, for an amount of 2,104,765 thousand Euros,
representing 84% of the total amount of mediation lines.
o International: these lines are aimed to finance the internationalisation and exporting activity of
Spanish companies. In 2023, 865 operations have been granted, for an amount of 416,093
thousand Euros, in the different lines.
Concerning the direct activity, during 2023, ICO has complemented financing operations through
loans and issue of sureties with the acquisition of other corporate debt instruments.
In particular, bonds issued by Spanish companies have been acquired to facilitate the financing of its
investment plans at the mid and long term (corporate bonds); project bonds, as financing instrument
linked to large infrastructure operations; and bonds and business promissory notes issued through
the Alternative Fixed-Income Market (MARF), aimed to ease the access to financing of issuers,
particularly of SMEs, to cover their short and mid-term liquidity needs.
By means of these direct financing modalities and guarantees, during 2023, funds have been
disposed of and sureties have been issued, for an amount of 5,009,280 thousand Euros, attending
the companies’ investment and liquidity needs, and continuing with the promotion of large long-term
investment projects both in Spain and abroad, as a complement to the private initiative. The detail of
direct activity volumes made available to the companies is the following:
o Through the direct banking activity, loans and credits have been disposed of, for an amount
of 3,105,446 thousand Euros, and sureties have been issued, for an amount of 159,200
thousand Euros.
o Through the direct complementary activity, corporate bonds and MARF bonds at mid and long
term have been acquired, for an amount of 266,117 thousand Euros, and MARF promissory
notes at short term, for an amount of 1,478,517 thousand Euros.
Another of the Institute’s main strategic lines of action as National Promotion Bank is carried out
through AXIS, the venture capital subsidiary of the ICO Group, which acts in public-private
collaboration with the venture capital sector through the management of equity of 12,150 million Euros
in its four funds: Fond-ICO Global, Fond-ICO Next Tech, Fond-ICO SMEs, and Fond-ICO
Sustainability and Infraestructuras in which the Institute is the sole participant. These funds will allow
a joint mobilisation of public and private resources of more than 18,000 million Euros in the next five
years, based on the private sector’s capacity to absorb resources and materialise projects.
Axis’ investments, which are in any case minority investments and do not imply effective control of
the company, are aimed at promoting the dynamisation and consolidation of the private venture
capital fund ecosystem, both in the early stages: venture capital, incubation and technology transfer
and business angels (together with the European Investment Fund), and in expansion, growth and
debt, thus supporting the creation and growth of highly innovative and technology-based companies.
Fond-ICO Global is the first public venture capital “fund of funds” created in Spain, which objective is
to promote the creation of private management venture capital funds that carry out investments in
Spanish companies, in order to facilitate alternative financing lines, complementary to banking lines,
and to promote their capitalisation and growth.
This fund, with an initial allocation of 1,200 million Euros, has been extended, given its positive
evolution, and currently reaches 4,500 million Euros.
AXIS Board of Directors, held on November 2023, approved the launch of the 16
th
Call, Fond-ICO
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Global’s largest ever, to select 12 funds or managers in three categories: incubation and technology
transfer, venture capital and expansion, in which up to 900 million Euros will be invested.
Through the 15 calls resolved until December 31, 2023, investments have been approved for a
maximum amount of 3,427 million Euros, with a target investment volume of 11,474 million Euros in
Spanish companies. For each Euro of public capital invested by Fond-ICO Global, the private funds
will invest a minimum of 3.3 Euros in Spain.
Fond-ICO SMEs, allocated with 250 million Euros, has as objective to boost the business fabric and
create employment through the participation in Spanish SMEs with capital and quasi capital
instruments. It currently focuses on investment in funds that invest in strategic or innovating activity
segments, such as sustainability and social impact or the entrepreneurial ecosystem, also promoting
the financing complementary to banking, through business angels or diversified debt
(crowdlending/crowdfunding).
During 2023 the Board of directors of Axis has approved operations through Fond-ICO SMEs by 30
million Euros.
Through Fond-ICO Sostenibilidad e Infraestructuras, a fund endowed with 400 million Euros, the
Institute provides financing to companies through equity participations, subordinated debt and
participating loans. The aim of this fund is to invest directly or through other funds in sustainable
infrastructure projects in Spain and abroad with Spanish companies.
During 2023 the Board of directors of Axis has approved operations through this fund by 32 million
Euros.
AXIS and the State Secretariat for Digitalisation and Artificial Intelligence (SEDIA) launched Fond-
ICO Next Tech in 2021. This fund invests in funds, corporate vehicles and companies that promote
innovative high-impact digital projects and investment in growth companies (scale-ups) with the aim
of mobilising 8 billion Euros, half from public funds and half from private investment, over an initial
period of four years.
The ICO General Council, held on February 23, 2023, approved the commitment to increase the size
of FondICO Next Tech by an additional 2 billion Euros, to 4 billion Euros. This increase was approved
by the AXIS Board of Directors at its July 2023 meeting.
Since the start of its investment activity in 2022 and until December 2023, AXIS has approved Fond-
ICO Next Tech's participation in eight funds and five companies, for a cumulative amount of 5,344
million Euros.
As Financial Economic Policy Instrument, ICO supports the Spanish economy in two ways:
enhancing its role as a channel of EU resources in their different modalities and developing functions
entrusted by the Government to implement the economic policy measures.
The Institute uses its different fund distribution mechanisms as National Promotion Bank to boost the
recovery, transformation and strengthening process of the growth model of Spain, according to
priorities defined in the Recovery, Transformation and Resilience Plan approved by the Government
and in line with the Next Generation EU Programme and the Multiannual Financial Framework 2021-
2027 of the European Union.
For this purpose, ICO cooperates by channelling financial resources associated to economic policy
measures together with Ministries, Autonomous Communities, Local Corporations and their
dependent bodies, as well as European Union resources towards Spanish companies and projects
with Spanish interest.
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In its role as State Financial Agency, ICO manages official funds and financing instruments to
exportation and development, facilitates the sustainability of autonomic and local administrations and,
since 2020, through an efficient public-private collaboration model, manages on behalf of the State
the public surety lines implemented as a consequence of the health crisis of the COVID 19 and the
war in Ukraine.
Concerning the activity managed by surety lines associated to the COVID-19 crisis, the State has
guaranteed 108,073,024 thousand Euros from the beginning to the end of the validity of the lines on
June 30, 2022.
During the financial year 2023, the Institute continued to manage the various measures agreed by the
Government in relation to COVID guarantee operations formalised during the period of validity, in
particular, the monitoring of the extension of the maturity and grace period of guaranteed operations
regulated in the Council of Ministers Agreement of June 21, 2022. Similarly, the ICO continues to
monitor, control and report on defaults and recoveries under the line of guarantees.
In 2023, the Institute also managed the line of public guarantees provided by the State as a result of
the war in Ukraine, regulated by Royal Decree Law 6/2022. This line, endowed with up to 10,000
million Euros, is intended to partially cover the financing granted by financial institutions to companies
and the self-employed. In December 2023, the Council of Ministers approved the activation of the
third tranche of the line of ICO Ukraine Guarantees for the self-employed and companies for an
amount of up to 3,500 million Euros (up to 3,000 million Euros for the self-employed and SMEs and
up to 500 million Euros for companies that do not qualify as SMEs). This new agreement completes
the provision to the self-employed and companies of all the 10,000 million Euros available for this line
of guarantees, with the ICO having been assigned the management of 9,000 million Euros.
It should also be noted that the Agreement of the Council of Ministers of December 5, 2023 instructed
the ICO to extend the maturity of the guarantees granted to companies and the self-employed under
the ICO Ukraine Guarantee line when certain conditions established in the Agreement are met.
The amount guaranteed at the end of December 2023 is 4,498,564 thousand Euros, corresponding
to 26,840 loan operations with an amount financed of 5,803,128 thousand Euros.
In addition to sureties of the facilities for the COVID-19 and Ukraine crisis, in 2023, the Institute has
continued managing on behalf of the State other funds and instruments in three areas of action:
financing the State’s peripheric administration through Territorial Funds of Autonomous Communities
and Local Entities, on behalf of the Ministry of Finance; promoting the Spanish companies’
internationalisation through the Fund for the Business Internationalisation (FIEM) and the Reciprocal
Interest Adjustment Agreement (CARI), on behalf of the Ministry of Industry, Trade and Tourism; and
the financial cooperation to the development, through the Development Promotion Fund
(FONPRODE) and the Water Fund (FCAS), on behalf of the Spanish Agency of International
Cooperation to Development (AECID).
At the end of the financial year 2023, the total balance managed by ICO corresponding to these funds
is of 210,684 million Euros:
o The Financing Fund for Autonomous Communities has an outstanding balance of 197,968
million Euros.
o State funds for the internationalisation and financial cooperation to the development (CARI,
FIEM, FONPRODE and FCAS) present a joint balance of 6,432 million Euros.
o The Financing Fund to Local Entities has closed 2023 with a balance of 6,284 million Euros.
107
Fundraising
The Institute finances its activity at the mid and long term mainly through debt issues in capital markets
and through bilateral loans of multilateral credit institutions. The ICO is not financed through the
General State Budgets and does not gain deposits from individuals.
During 2023, resources were obtained at mid and long term, for an amount of 7,314 million Euros.
Out of this amount, 1,000 million Euros through two issues of sustainable bonds: one of green bonds
and another of social bonds.
On 7 February, the Institute launched the fifth issue of green bonds for an amount of 500 million Euros
for a term of around 5 years. The funds raised will be used to finance projects carried out by Spanish
companies that contribute to boosting the ecological transition and the development of sustainable
finance, in line with the objectives of the National Recovery, Transformation and Resilience Plan.
In addition, on 27 June, it launched its tenth issue of social bonds, amounting to 500 million Euros.
The funds raised with this operation will be used to finance projects of the self-employed, SMEs and
Spanish companies that generate a positive social impact and boost job creation.
ICO is a benchmark issuer in the sustainable bond market with fifteen transactions (ten social and
five green) for a global amount of 7,550 million Euros until December 2023.
Balance sheet
ICO Group occupies a prominent position within the Spanish financial system and has an important
role in the Spanish economy.
The Institute’s balance sheet reaches 31,689,303 thousand Euros at 2023 closing (29,802,910
thousand Euros at 2022 closing). The main reason for the change compared to the previous year was
the increase in financial assets at amortised cost.
The outstanding amount of financial assets at amortised cost has amounted to 27,204,578 thousand
Euros (23,866,671 thousand Euros at December 31, 2022):
• Loans to credit institutions amount to 8,300,598 thousand Euros (6,911,989 thousand Euros
in 2022). This caption mainly includes outstanding balances from mediation operations.
• Loans to customers close the year with a balance of 12,601,396 thousand Euros with regard
to 10,173,657 thousand Euros in the previous year.
• Debt securities amount to 6,302,584 thousand Euros; 6,781,025 thousand Euros at 2022
closing.
In 2023, the outstanding balance of the debt securities portfolio at fair value through other
comprehensive income decreased to 91,001 thousand Euros (1,135,160 thousand Euros at
December 31, 2022) and the balance of equity instruments increased to 1,533,557 thousand Euros
(1,325,031 thousand Euros at the end of 2022). This heading mainly includes the Institute's holdings
in venture capital funds managed by AXIS Participaciones Empresariales S.G.E.I.C., S.A., S.M.E., a
management company wholly owned by the Instituto de Crédito Oficial.
During 2023, there has been an increase of the balance of financial liabilities at amortised cost, closing
the year in 23,492,409 thousand Euros (21,634,039 thousand Euros in 2022).
Equity in ICO amounts to 5,776,071 thousand Euros at 2023 closing, 18% of the balance sheet. The
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Institute’s solvency coefficient at year-end closing amounts to 26.56%, much higher than regulatory
minimums.
Risk management policy
The Institute’s actions with regard to liquidity, market, credit and operational risk management are
described on the corresponding Notes 5.3 to 5.6.
Results
Net interest income at the end of December 2023 amounted to 291,490 thousand Euros, an increase
of 165,744 thousand Euros with regard to 2022.
In the same line, gross margin in 2023 has increased, with regard to 2022 (384,805 thousand Euros
and 233,525 thousand Euros, respectively).
Operating expenses (administration and depreciation) amounted to 52,496 thousand Euros, above
figures in 2022 (51,002 thousand Euros).
The financial year 2023 was closed with a reversal of the value of financial assets not measured at
fair value of 12,777 thousand Euros and net provision recoveries of 9,138 thousand Euros.
As a result, profit before tax amounted to 356,984 thousand Euros.
Treasury stock
Not applicable to the Institute.
Personal
ICO Group’s average payroll, in 2023, amounts to 376 employees, with regard to 344 in 2022.
Post-balance sheet events
The Council of Ministers approved on February 13, 2024 an agreement establishing the conditions
for the Ministry of Housing and Urban Agenda (MIVAU) to sign with ICO a line of 2,500 million Euros
in guarantees for the purchase of first homes for young people under 35 years of age and families
with dependent minors. The guarantees will be managed by ICO on behalf of MIVAU under the terms
established in the Agreement to be formalised between both parties for a period of up to 15 years.
On the other hand, the Council of Ministers of 27 February approved an agreement establishing the
general conditions for the implementation of five facilities charged to the loans of the addendum to
the Recovery Plan, amounting to 40,000 million Euros, and instructed the Instituto de Crédito Oficial
(Official Credit Institute) to manage them.
The second phase of the Recovery Plan is thus launched, which will allow the transformation and
modernisation process of the productive fabric and the Spanish economy to be completed. The five
facilities approved will be used to finance investment projects that favour the dual green and digital
transition of companies, thereby strengthening their competitiveness. Specific facilities will also be put
in place to boost the audiovisual sector and disruptive technologies, as well as to increase the stock
of public social housing for rent.
Other significant events that occurred after the reporting date are detailed in Note 1.8.
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Non-Financial Information Statement
In accordance with the provisions of Law 11/2018 of 28 December on non-financial information and
diversity, the Institute has prepared the 2023 non-financial information statement which is included as
a separate document attached to the 2023 management report, as required by article 44 of the
Commercial Code.
Annex I:
Investments at 31.12.2023 and 31.12.2022 (direct and indirect of ICO, as the Group’s parent company)
110
The relevant information on shares in associates and subsidiaries at December 31, 2023 and 2022 is the following:
At 31 December 2023:
Shareholding%
Investment’s carrying value
Entity’s details
Address
Activity
Direct
Indirect
Total
Gross
Impairment
Net
Assets
Equity
Results
Associates
CERSA, Compañía Española de
Reafianzamiento, S.A.
Paseo de la Castellana
151 - Madrid
Supporting
guarantee of
guarantee operations
granted by the SGR
24.39%
-
24, 39%
47 060
-
47 060
954 032
775 910
-
COFIDES, Compañía Española
de Financiación del Desarrollo,
S.A.
Príncipe De Vergara,
132 - Madrid
Financial support to
private projects with
Spanish interest
performed in
developing countries
20.31%
-
20,31%
8 466
-
8 466
221 555
215 864
27 404
Subsidiaries
55 526
-
55 526
AXIS Participaciones
Empresariales Sociedad Gestora
de Entidades de Capital Riesgo,
S.A.
Los Madrazo, 38
- Madrid
Financial
investments
100.00%
-
100,00%
1 940
-
1 940
56 347
54 984
24 116
57 466
-
57 466
Non-audited economic information, referring to 31 December 2023
Annex I:
Investments at 31.12.2023 and 31.12.2022 (direct and indirect of ICO, as the Group’s parent company)
111
At 31 December 2022:
Shareholding%
Investment’s carrying value
Entity’s details
Address
Activity
Direct
Indirect
Total
Gross
Impairment
Net
Assets
Equity
Results
Associates
CERSA, Compañía Española de
Reafianzamiento, S.A.
Paseo de la Castellana
151 - Madrid
Supporting
guarantee of
guarantee operations
granted by the SGR
24.39%
-
24, 39%
47 060
-
47 060
817 669
647 074
-
COFIDES, Compañía Española
de Financiación del Desarrollo,
S.A.
Príncipe De Vergara,
132 - Madrid
Financial support to
private projects with
Spanish interest
performed in
developing countries
20.31%
-
20,31%
8 466
-
8 466
191 444
184 516
16 099
Subsidiaries
55 526
-
55 526
AXIS Participaciones
Empresariales Sociedad Gestora
de Entidades de Capital Riesgo,
S.A.
Los Madrazo, 38
- Madrid
Financial
investments
100.00%
-
100,00%
1 940
-
1 940
48 657
47 356
20 612
57 466
-
57 466
Non-audited economic information, referring to 31 December 2022
112
Appendix II
ANNUAL BANKING REPORT
This Annual Banking Report has been prepared in compliance with the provisions of article
87 of Law 10/2014 of 26 June 2014 on the Regulation, Supervision and Solvency of Credit
Institutions. Pursuant to the aforementioned article, as from January 1, 2016, credit
institutions must submit to Bank of Spain and publish annually, as an appendix to the
audited financial statements, in accordance with audit regulations, specifying the following
information on a consolidated basis for each financial year, for each country where they are
established:
a) Denomination, nature and geographic location of the activity.
b) Turnover
c) Number of full-time equivalent employees.
d) Gross results before tax
e) Income tax
f) Grants or public aids received
The criteria used to prepare the annual banking report for financial years 2023 and 2022
are detailed below:
a) Denomination, nature and geographic location of the activity
The aforementioned information is available in Section 1 of the Notes to the Group’s
consolidated financial statements. In the case Instituto de Crédito Oficial, the main activity
carried out by the Group is direct lending and intermediation, exclusively developing it under
Spanish jurisdiction, as it has no establishments or subsidiaries outside Spain.
b) Turnover
For the purposes of this report, net operating income is defined as total net operating income
as defined and presented in the consolidated income statement, which forms part of the
Group’s consolidated financial statements.
c) Number of full-time equivalent employees
Information on full-time equivalent employees have been obtained from the Group’s
average payroll.
d) Gross results before tax
For the purpose of this report, gross results before tax are considered results before tax, as
defined and presented in the Group’s consolidated income statement.
e) Income tax
The amount of the corresponding accrued tax, registered in the caption of corporate income
tax of the consolidated income statement, is included.
113
f) Grants or public aids received
In the context of the information required by current legislation, this term has been
interpreted as any aid or grant in line with the provisions of the European Commission’s
State Aid Guidelines and, in this context, the Group companies have not received any public
grant or aid in 2023 or 2022.
Details of the information for 2023 and 2022 are set out below (amounts in thousands of
Euros):
At 31 December 2023:
Thousands of Euros
JURISDICTION
Turnover
Average no.
employees
Gross results
before tax
Income tax
Spain
384 805
376
356 984
(104 719)
At 31 December 2022:
Thousands of Euros
JURISDICTION
Turnover
Average no.
employees
Gross results
before tax
Income tax
Spain
233 525
344
203 865
(57 033)
At December 31, 2023, the Group’s return on assets (ROA) (consolidated net profit divided
by average total assets) was estimated at 0.78%.
Translation of a report originally issued in Spanish.
In the event of a discrepancy, the Spanish-language version
prevails
C/ Alcalá, 63
28014 – Madrid
+34 915 624 030
www.mazars.es
Offices in: Alicante, Barcelona, Bilbao, Madrid, Madrid, Malaga, Valencia, Vigo.
Mazars Auditores, S.L.P. Registered Office: C/Diputació, 260 - 08007 Barcelona
Mercantile Registry of Barcelona, Volume 30.734, Folio 212, Page B-180111, Inscription 1ª, N.I.F. B-61622262
Instituto de Crédito Oficial
Independent Assurance Report
Consolidated Non-Financial Information
Statement for the year ended December 31,
2023
Offices in: Alicante, Barcelona, Bilbao, Madrid, Madrid, Malaga, Valencia, Vigo.
Oficinas en: Alicante, Barcelona, Bilbao, Madrid, Málaga, Valencia, Vigo
Mazars Auditores, S.L.P. Domicilio Social: C/Diputació, 260 - 08007 Barcelona
Registro Mercantil de Barcelona, Tomo 30.734, Folio 212, Hoja B-180111, Inscripción 1ª, N.I.F. B-61622262
1
INDEPENDENT ASSURANCE REPORT OF THE
CONSOLIDATED NON-FINANCIAL INFORMATION STATEMENT
To the General Board of Instituto de Crédito Oficial:
Pursuant to article 49 of the Code of Commerce we have performed a verification, with a limited
assurance scope, of the accompanying Consolidated Non-Financial Information Statement
(hereinafter, NFIS) for the year ended December 31, 2023, of Instituto de Crédito Oficial
(hereinafter, the parent Company or the Institute) and its subsidiaries (hereinafter, the Group),
which is part of the Consolidated Directors Report of the Group.
The content of the NFIS includes additional information to that required by prevailing
commercial regulations in relation to non-financial information statement that has not been
subject to our verification. In this regard, our review has been exclusively limited to the
verification of the information shown in the section “8. Table of Contents Law 11/2018 and GRI”
of the accompanying NFIS.
Responsibility of the President of the Institute
The preparation of the NFIS included in the Consolidated Directors Report and its content is the
responsibility of the President of the Institute. The NFIS was prepared in accordance with the
content required by prevailing commercial law and in conformity with the criteria outlined in the
Global Reporting Initiative Sustainability Reporting Standards (GRI standards), selected in
accordance with that indicated for each subject in the section “8. Table of Contents Law
11/2018 and GRI” of the accompanying NFIS.
This responsibility also includes the design, implementation and maintenance of such internal
control as they determine is necessary to enable the preparation of a NFIS that is free from
material misstatement, whether due to fraud or error.
The parent Company’s President is further responsible for defining, implementing, adapting and
maintaining the management systems from which the information necessary for the preparation
of the NFIS is obtained.
Instituto de Crédito Oficial and subsidiaries
Financial year ended December 31, 2023
2
Our Independence and quality control
We have complied with the independence and other Code of Ethics requirements for accounting
professionals issued by the International Ethics Standards Board for Accountants (IESBA),
which is based on the fundamental principles of integrity, objectivity, professional competence,
diligence, confidentiality and professionalism.
Our Firm complies with international standards on quality in force and thus maintains a quality
system that includes policies and procedures related to compliance with ethical requirements,
professional standards, as well as applicable legal provisions and regulations.
The engagement team consisted of experts in the review of Non-Financial Information and,
specifically, in information about economic, social and environmental performance.
Our responsibility
Our responsibility is to express our conclusions in an independent limited assurance report,
based on the work performed.
Our review has been performed in accordance with the requirements established in prevailing
International Standard on Assurance Engagements 3000 “Assurance Engagements Other than
Audits or Reviews of Historical Financial Information” (ISAE 3000 Revised), issued by the
International Auditing and Assurance Standards Board (IAASB) of the International Federation
of Accountants (IFAC), and guidelines for verifying Non-Financial Statement, issued by the
Spanish Institute of Chartered Accountants (ICJCE).
Procedures carried out in a limited assurance engagement vary in nature and timing and are
smaller in scope than reasonable assurance engagements, and therefore, the level of
assurance provided is likewise lower.
Our work has consisted in requesting information from Management and the various Group
units participating in the preparation of the NFIS, reviewing the process for gathering and
validating the information included in the NFIS, and applying certain analytical procedures and
sampling review tests as described below:
• Meeting with the parent Company’s personnel to know the business model, policies and
management approaches applied, the main risks related to these matters, and to obtain the
necessary information for our external review.
• Analysing the scope, relevance and integrity of the content included in the 2023 NFIS, based
on the materiality analysis made by the parent Company in section “1.4 Analysis of the
materiality”, considering the content required by prevailing commercial regulations.
• Analysing processes for gathering and validating data included in the 2023 NFIS.
• Reviewing the information on risks, policies and management approaches applied in relation
to the material aspects included in the 2023 NFIS.
• Checking, through tests, based on a selection of a sample, information related to the content
of the 2023 NFIS and its correct compilation from the data provided.
• Obtaining a representation letter from the parent Company’s President.
Instituto de Crédito Oficial y sociedades dependientes
Ejercicio terminado el 31 de diciembre de 2023
3
Conclusion
Based on procedures performed in our verification and on the evidence obtained, no matter has
come to our attention that would cause us to believe that the NFIS of Instituto de Crédito
Oficial and subsidiaries for the year ended December 31, 2023 has not been prepared, in all
material respects, in accordance with the contents required by prevailing commercial law and
following the criteria of the selected GRI standards, selected as explained for each subject
matter in the table named “8. Table of Contents Law 11/2018 and GRI” of the abovementioned
NFIS.
Use and distribution
This report was prepared in response to the requirement established by prevailing commercial
law in Spain, and may not be appropriate for other uses and jurisdictions.
Madrid, April 5, 2024
MAZARS AUDITORES, S.L.P.
[Signed in original]
__________________
Oscar Herranz López
NON-FINANCIAL INFORMATION STATEMENT 2023
(Law 11/2018)
March 2024
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
2
Content
1 ICO GROUP, ITS STRATEGY AND ITS ENVIRONMENT ................................................................................... 4
1.1 COMPOSITION ...................................................................................................................................... 4
1.2 NATURE AND FUNCTIONS .................................................................................................................... 4
1.3 GOVERNANCE STRUCTURE AND MANAGEMENT ................................................................................. 7
1.4 MATERIALITY ANALYSIS ...................................................................................................................... 17
1.5 ICO GROUP’S STRATEGY ..................................................................................................................... 22
1.6 ICO INVESTEES .................................................................................................................................... 26
1.7 PUBLIC-PRIVATE PARTNERSHIPS AND COLLABORATION ................................................................... 27
1.8 ECONOMIC AND FINANCIAL ENVIRONMENT OF ACTION .................................................................. 28
2 OUR MODEL OF VALUE CONTRIBUTION TO THE SOCIETY: PROMOTING SUSTAINABLE GROWTH ........... 31
2.1 REFERENCE FRAMEWORKS ................................................................................................................. 32
2.2 ITS FINANCING ACTIVITY: SUPPORTING THE PRODUCTIVE FABRIC ................................................... 36
2.3 POSITIVE MACROECONOMIC IMPACT IN THE SPANISH ECONOMY ................................................... 62
2.4 PROMOTING SUSTAINABILITY IN OUR ACTIVITY AS FUNDERS ........................................................... 63
3 COMMITMENT WITH THE SOCIETY: BEYOND OUR FINANCIAL ACTIVITY .................................................. 79
3.1 FUNDACIÓN ICO. PROMOTING CULTURE AND KNOWLEDGE ............................................................ 79
3.2 OUR ROLE IN THE SOCIETY ................................................................................................................. 85
3.2.1 HUMAN RIGHTS .......................................................................................................................... 85
3.2.2 SUPPLIERS ................................................................................................................................... 87
3.2.3 CUSTOMERS ................................................................................................................................ 87
3.2.4 PARTNERSHIP WITH SUSTAINABILITY ASSOCIATIONS ................................................................ 89
3.2.5 CORPORATE VOLUNTEERING ..................................................................................................... 91
3.2.6 RESULTS, TAX AND SUBSIDY INFORMATION .............................................................................. 92
4 OUR WAY OF DOING THINGS: RESPONSIBLE MANAGEMENT .................................................................... 94
4.1 RISK MANAGEMENT: IDENTIFICATION AND MONITORING ............................................................... 94
4.2 GENERAL INSTRUMENTS FOR RESPONSIBLE MANAGEMENT ............................................................ 97
4.3 SPECIFIC ETHICS AND RESPONSIBLE MANAGEMENT TOOLS ............................................................. 98
4.4 MAIN INTERNAL MANAGEMENT RESULTS ....................................................................................... 103
4.4.1 RESPONSIBLE USE OF NATURAL RESOURCES ........................................................................... 103
4.4.2 CIRCULAR ECONOMY AND WASTE MANAGEMENT ................................................................. 104
4.4.3 POLLUTION. EMISSIONS. INTERNAL CARBON FOOTPRINT ....................................................... 106
4.4.4 COMMUNICATION FOR SUSTAINABLE GROWTH ..................................................................... 108
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
3
4.4.5 CERTIFICATIONS AND OTHER MENTIONS................................................................................. 112
5 HUMAN TEAM AND DIVERSITY MANAGEMENT ....................................................................................... 115
5.1 PAYROLL INFORMATION ................................................................................................................... 116
5.2 CONTRACT MODALITIES ................................................................................................................... 118
5.3 AVERAGE REMUNERATIONS AND SALARY GAP................................................................................ 119
5.4 WORK ORGANISATION ..................................................................................................................... 122
5.5 WORK-LIFE BALANCE ........................................................................................................................ 123
5.6 SECURITY AND HEALTH ..................................................................................................................... 126
5.7 SOCIAL RELATIONS ........................................................................................................................... 128
5.8 TRAINING .......................................................................................................................................... 130
5.9 UNIVERSAL ACCESSIBILITY OF PERSONS WITH DISABILITY .............................................................. 131
5.10 EQUALITY AND DIVERSITY ................................................................................................................ 132
6 ABOUT THE REPORT ................................................................................................................................. 134
7 ORGANISATION CHART ............................................................................................................................. 136
8 TABLE OF CONTENTS LAW 11/2018 AND GRI .......................................................................................... 140
APPENDIX. GLOSSARY OF ABBREVIATIONS ...................................................................................................... 150
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
4
1 ICO GROUP, ITS STRATEGY AND ITS ENVIRONMENT
1.1 COMPOSITION
ICO Group is made up by:
• Instituto de Crédito Oficial, Entidad Pública Empresarial (ICO)
• AXIS Participaciones Empresariales, S.G.E.I.C., S.A., S.M.E. (hereinafter, AXIS), fully
invested by ICO
• Fundación ICO, which sole promoter is ICO
The definition of Consolidated ICO Group has considered as Group Entities those on which the
Institute has the ability to exercise control; this ability is manifested, in general but not solely, through
the ownership, direct or indirect, of 50% or more of the investees’ political rights or, even if this
percentage was lower or nil, when for instance there are agreements with their shareholders granting
control to the Institute. By virtue of the regulations, control is understood as the power to direct the
financial and operating policies of a company, in order to obtain benefits from its activities.
The subsidiary’s annual accounts are consolidated with the Institute’s annual accounts in application
of the equity method, as defined in the regulations. Accordingly, all balances derived from operations
made by consolidated companies through this method that are significant have been eliminated in the
consolidation process.
The Institute, as the Group’s parent company, represents 99% of its consolidated balance sheet.
The three entities are based in Madrid and therefore only operate in Spain.
1.2 NATURE AND FUNCTIONS
A. ICO
Instituto de Crédito Oficial is a Public Business Entity that has the legal status of a credit institution
and is considered a State Financial Agency. It has legal personality, its own assets and treasury, and
management autonomy for the fulfilment of its purposes. The ICO is financed on the capital markets
and through loans. It is guaranteed by the Spanish State for the debts and obligations it incurs by
raising funds.
Attached to the Ministry of Economy, Trade and Enterprise, the Secretary of State for Economy and
Business Support is responsible for the strategic management of ICO, as well as for the evaluation
and control of the results of its activity.
The nature and legal regime of the ICO, and its purposes and functions are defined in its Statutes,
approved by Royal Decree 706/1999, amended by Law 40/2015, on the Legal Regime of the Public
Sector, Royal Decree 1149/2015 and Royal Decree 390/2011.
The detailed organisation chart is included in section 7 of this document.
➢ Mission
The aims of Instituto de Crédito Oficial are the support and promotion of economic activities that
contribute to the growth and improvement of the distribution of national wealth and, in particular, of
those that, due to their social, cultural, innovative or ecological importance, deserve to be encouraged,
as defined in art. 2 of the Bylaws.
➢ Vision
These objectives are carried out by the Institute in its triple role as National Promotion Bank, Financial
Instrument of Economic Policy and State Financial Agency and are specified in:
• Extending the public-private collaboration model, deepening it whenever possible.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
5
• The capacity to anticipate, adapt and scope its actions to the needs of companies and the self-
employed at all times and to the transformation of the business fabric and economic policy
guidelines.
• With a long-term perspective, contributing to the mobilisation of the necessary resources for
economic transformation, generating added value and transferring the competitive conditions
for the mobilisation of resources.
• In a relationship of complementarity and coherence with other public policies, generating
synergies.
• In a cross-cutting manner, ICO's activity is structured by elements that permeate all its internal
and external actions, mainly linked to sustainability in a broad sense and digitalisation.
ICO seeks to be a leading international organisation and a national institution of reference in terms of
transparency, solvency and credibility, to be recognised, especially by SMEs and financial institutions,
as an ally for the growth of wealth and employment, and to be made up of a highly qualified, motivated,
efficient and committed team that carries out its functions in an atmosphere of trust and collaboration.
➢ Functions
According to its Bylaws, they are the following:
• Contribute to alleviating the economic effects produced by situations of serious economic
crisis, natural catastrophes or other similar events, in accordance with the instructions of the
Council of Ministers or the Government Delegate Commission for Economic Affairs.
• To act as an instrument for the execution of certain economic policy measures, following the
fundamental lines established by the Council of Ministers, the Government Delegate Commission
for Economic Affairs or the Ministry of Economy, Trade and Enterprise, and subject to the rules
and decisions agreed by its General Council in this respect.
Instituto de Crédito Oficial, ENTIDAD PÚBLICA
EMPRESARIAL (ICO)
NIF: Q-2876002-C
Paseo del Prado, 4- 28014 MADRID
www.ico.es
B. AXIS
AXIS is a state-owned public limited company as provided for in article 2.2.c) of Law 47/2003, General
Budgetary Law, article 166.c) of Law 33/2003, on Public Administration Assets, and article 111 of Law
40/2015, on the Legal Regime of the Public Sector.
According to its Bylaws, the Company’s main corporate purpose is the administration and
management of venture capital funds and the assets of venture capital companies, as well as the
control and management of their risks. In addition, the Company may perform the functions described
in article 42.4 of Law 22/2014, of 12 November, regulating Private Equity Entities, Other Collective
Investment Companies and Management Companies of Collective Investment Companies
(hereinafter, “Law 22/2014”). As a complementary activity, the Company may provide advisory
services to non-financial companies as defined in article 7 of Law 22/2014.
Axis acts in the interests of the funds it manages and of its sole participant and shareholder, Instituto
de Crédito Oficial, in the investments and assets of such funds, in accordance with the provisions of
Law 22/2014 and other applicable regulations.
The organisation chart is included in point 7 of this document.
➢ Mission
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
6
The purpose of AXIS is to promote the dynamisation and consolidation of the private venture capital
ecosystem, both in the early stages: venture capital, incubation and technology transfer and business
angels, as well as expansion, growth and debt, thus supporting the creation and growth of highly
innovative and technology-based companies.
➢ Functions
• To act as a catalyst for the creation of venture capital entities with a majority of private capital
with the ultimate aim of providing SMEs with alternative financing to bank financing.
• Directly support companies in their expansion plans to contribute to the development of the
business fabric, the creation of employment and the dynamisation of the economy.
• Mobilise the largest possible amount of resources from the private sector through co-
investment investments with other private venture capital funds.
• Improve the quality and safety of infrastructures in Spain as a key element in the economic
growth and modernisation of the country.
AXIS PARTICIPACIONES EMPRESARIALES,
S.G.E.I.C, S.A., S.M.E.
NIF: A78290269
c/ Los Madrazo, 38 2ª planta - 28014 MADRID
https://www.axispart.com/en/web/axis
C. FUNDACIÓN ICO
Fundación ICO is a permanent, non-profit, State Public Sector Foundation created in 1993, which
carries out its activities under the sole sponsorship of the ICO. It has its own legal personality and
assets.
➢ Mission
To contribute to the development of society in areas related to ICO’s activity and assets.
➢ Vision
To be a leader in the promotion and dissemination of knowledge, with an international vocation and
on two axes: Sustainable Economy and Finance and Sustainable Art and Architecture.
➢ Functions
• Sustainable Art and Architecture Area: it includes the management, conservation and
dissemination of ICO’s art collections, as well as the management of the ICO Museum and its
temporary exhibitions and catalogues for each exhibition, and the organisation of educational
and inclusive activities that make the ICO Museum a learning space for everyone.
• Sustainable Economy and Finance Area: this area focuses on the following four thematic
areas:
o Financial and Economic Education and dissemination of economic and financial
research and knowledge;
o Sustainability and Circular Economy. Sustainable finance;
o Financing and business growth. Alternative finance;
o Economic and Monetary Union and international economic and financial relations, with
a special focus on Latin America.
FUNDACIÓN ICO
NIF G-80743503
Paseo del Prado, 4. - 28014 MADRID
www.fundacionico.es
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
7
The organisation chart is included in point 7 of this document.
1.3 GOVERNANCE STRUCTURE AND MANAGEMENT
A. ICO
The governing structure of Instituto de Crédito Oficial is set out in its bylaws, approved by Royal
Decree 706/1999, with the amendments provided for in Law 40/2015 on the Legal Regime of the
Public Sector, Royal Decree 1149/2015 and Royal Decree 390/2011. It is completed with the internal
operating and control bodies, approved by the President of the ICO within the scope of powers
conferred on him by the bylaws. The internal regulations in force as at 31 December are
Organisational Circular 1/2023 of 12 July and Circular on Collegiate Bodies 3/2023 of 20 December.
The President of ICO is also President of Axis and the Fundación ICO. Four general directorates
report to the President’s Office, as well as the Legal Advisory and Council Secretariat Directorate, the
Internal Audit Department and the Communication and Cabinet Department. The detailed
organisational chart can be found in section 7 of this document.
As defined in the Bylaws, the governing bodies are the General Council and the President. The other
management bodies are defined in the aforementioned Circular on Collegiate Bodies. Of particular
note are the Operations Committee and the Management and Strategy Committee, whose main
functions are described below. The complete list of bodies is as follows:
MANAGEMENT BODIES
General Council
President
MANAGEMENT BODIES
Management and Strategy Committee
Operations Committee
Credit Committee
Asset and Liability Committee
Monitoring Committee
International and EU Activity Committee
FUNDACIÓN ICO
AXIS
DG FINANCIACIÓN Y
ESTRATEGIA
DG NEGOCIOS
DG RIESGOS Y
CONTROL FINANCIERO
DG TÉCNICA Y DE
RECURSOS
PRESIDENCIA
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
8
Sustainability Committee
Contracting Committee
Audit and Compliance Committee
Regulatory Compliance Technical
Committee
Information Security Committee
Business Continuity Committee
Committee of Compliance with the
Code of Ethics and Conduct
MANAGEMENT BODIES
GENERAL COUNCIL
The composition of the ICO’s General Council, its functions, and the rules governing meetings and
resolutions are defined in the Bylaws, approved by Royal Decree 706/1999.
Law 40/2015 and Royal Decree 1149/2015 incorporate and develop the figure of independent
directors on the General Council, reinforcing the Institute’s autonomy and its alignment with the best
European standards. The figure of the independent director plays a key role in the functioning of the
Council, as they have a double vote for the operations of the Institute's financial business, which
means that they have a majority.
Structure and composition
The General Council is made up of the President of the entity and ten members and is assisted by the
secretary and, where appropriate, by the deputy secretary. The secretary and vice-secretary are not
considered directors, so they attend meetings with the right to speak but not to vote.
Following the amendment by Law 40/2015 to Royal Decree-Law 12/1995 and Royal Decree
1149/2015, of 18 December, the appointment and removal of the members of the General Council is
the responsibility of the Council of Ministers, by means of an Agreement, at the proposal of the Minister
of Economic Affairs and Digital Transformation, who shall appoint them from among persons of
recognised prestige and professional competence in the ICO’s field of activity.
The appointment of the members is made in accordance with the following terms:
• Four members shall be independent, understood as those who are not personnel in the service
of the public sector. The term of office of the independent members shall be three years, after
which they may be re-elected once.
• Six members shall be appointed from among staff of recognised competence in the service of
the public sector. A maximum of two members shall come from the Ministry of Finance and
Public Administration, while at least two public members shall come from the Ministry of
Economic Affairs and Digital Transformation.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
9
At December 31, 2023, the composition of ICO’s General Council was the following:
PRESIDENCY OF THE GENERAL COUNCIL
APPOINTMENT DATE
JOSÉ CARLOS GARCÍA DE QUEVEDO RUIZ
Royal Decree 683/2018
President
of 22 June
Instituto de Crédito Oficial
(BOE 23.06.2018)
MEMBERS OF THE GENERAL COUNCIL
APPOINTMENT DATE
JAVIER SÁNCHEZ FUENTEFRÍA
29.03.2022
Director General of Budget
Ministry of Finance
MARÍA CRISTINA TARRERO MARTOS
29.03.2022
Director General for Economic Programming and Budgets
Ministry of Transport and Sustainable Mobility
CÉSAR VELOSO PALMA
05.10.2018
Deputy Director of Cabinet
Ministry of Finance
MARÍA MATEO FEITO
25.04.2023
Director of Cabinet Técnico of SG of the Treasury and Int Fin.
Ministry of Economy, Trade and Enterprise
SILVIA IRANZO GUTIÉRREZ
16.11.2018
Independent Director
BLANCA MONTERO COROMINAS
22.06.2021
Independent Director
ENRIQUE FEÁS COSTILLA
16.11.2021
Independent Director
RAFAEL FERNÁNDEZ SÁNCHEZ
11.07.2022
Independent Director
COUNCIL SECRETARY AND DEPUTY SECRETARY:
APPOINTMENT DATE
CAYETANA LADO CASTRO-RIAL
22.02.2021
Secretary
Instituto de Crédito Oficial
GERARDO HARGUINDEY VALERO
25.01.2016
Deputy secretary
Instituto de Crédito Oficial
The following directors left the Council during 2023: Elena Aparici Vazquez de Parga (on 31 August),
Ignacio Mezquita Pérez-Andújar (on 31 August) and Andrés Barragán Urbiola (on 25 April). During
the year María Mateo Feito joined the Council. As of December 31, 2023, therefore, there were two
vacant seats, pending appointment by the Council of Ministers.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
10
Equality and diversity in the General Council
At December 31, 2023, of the eight members of ICO’s General Council, four of them were women
(50%). 50% of independent members are represented by women.
Regarding their age, at December 31, 2023, two members are below 50 years old (25%), while one
of them is 60 years old or more (12.5%). The average age of the directors, at year-end closing, is of
53.6 years old (54 years old in the case of female directors and 53 years old as average in the case
of male directors).
In general terms, the weight of independent directors represents 36.4% of the Council, but their vote
is worth twice as much in the most important decisions. Consequently, in these cases, independent
directors represent 53.3% of the total possible votes. In the situation at 2023 closing with two vacant
seats, the vote of independent directors weighs 44.4% for votes in general and 61.5% in the case of
double the value of their vote.
Likewise, the vote of women represents 46.2% of the total votes of the Council in force on 31
December in decisions in which the vote of independent directors counts double. In terms of age and
considering the double value of the vote, those under 50 years of age account for 15.4% of the total
votes.
Directors’ allowance policy
Royal Decree 462/2002, of 24 May, on allowances for reasons of service, provides for the payment
of allowances for attendance at meetings of collegiate bodies of the Administration and public bodies.
Pursuant to Article 10 of the ICO’s bylaws, approved by Royal Decree 706/1999, adapting Instituto de
Crédito Oficial to Law 6/1997, of 14 April, on the organisation and functioning of the General State
Administration and approving its statutes, “the members of the General Council, the Secretary and
the Deputy Secretary of the Council shall receive exclusively the allowances for attending its meetings
in accordance with the provisions of Royal Decree 462/2002, of 24 May, on allowances for reasons
of service”. The corresponding financial compensation must be authorised for two-year periods by the
Ministry of Finance, and the ICO has obtained the corresponding authorisation for the period 2023
and 2024, in accordance with the provisions of the regulations on indemnities for reasons of service
for public administration personnel. Notwithstanding the foregoing, and in accordance with the
provisions of Law 3/2015, of 30 March, regulating the exercise of senior positions in the General State
Administration, article 13, when the Director has the status of senior position, the remuneration for
attending Council meetings shall be paid into the Public Treasury.
The maximum amount for such attendance fees for the members of the General Council authorised
for the financial year 2023 was 11,984 Euros per year for a total of 11 meetings, i.e. 1,089 Euros per
meeting, identical for men and women, and with no difference for reasons of gender or age. It should
also be noted that both the President and the Secretary of the Council are excluded from receiving
these allowances, in accordance with the provisions of Royal Decree 451/2012, of 5 March, which
regulates the remuneration system for senior managers and executives in the public business sector
and other entities.
Taking into account the above, the total accrued in 2023 for the members of ICO’s General Council
was 111,127 Euros (123,111 Euros in 2022), 59,921 Euros accrued by men and 51,206 Euros by
women. 51,206 for women. For the entire financial year 2023 and as at December 31, 2023 due to
the higher presence of men on the Council during the year. The average annualised remuneration is
identical for women and men.
The members of the General Council do not receive variable or target-related remuneration and are
not beneficiaries of loans or any other social benefits granted by ICO Group. In addition, they are
subject to the incompatibility and conflict of interest regimes provided for in current legislation.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
11
Main issues dealt with by the General Council
Within the framework of its powers and without being exhaustive, the main matters dealt with by the
General Council may be summarised as follows:
- It analyses and, where appropriate, approves direct financing operations for which this body is
responsible, approves the terms and conditions of Intermediation lines, ICO investment
commitments in securitisation funds, portfolio guarantee programmes or private equity entities,
including AXIS, as well as conditions, programmes or other operations whose approval
corresponds to the General Council. It is also informed of all transactions approved by the
Operations Committee.
- It receives regular information on the Institute’s activity, through the President’s Report, as well
as specific reports such as the quarterly activity report, reports on the activity of government
funds, international activity and fundraising. Specifically, it is also informed of operations
instructed by the Government’s Delegate Commission for Economic Affairs or by the Council
of Ministers.
- Specifically, it receives recurring information on sustainability issues, new regulations, ICO’s
financial activity, impacts and other initiatives in this area, without prejudice to the information
on sustainability included in the operations it approves or in other reports.
- With regard to strategic and budgetary planning, it approves the Annual Action Plan, receives
information on the monitoring and evaluation of the Strategy, as well as information on the
Management Budget and the Multi-year Action Programme. It also approves the individual and
consolidated financial statements of the Institute, and this Non-Financial Information
Statement separately as required by law.
- On governance, it approves the most important policies, for example, an update of the Risk
Policy Manual was approved on March 2023. It is also aware of the regulatory compliance and
audit activity and other relevant actions regarding the prevention of money laundering and the
financing of terrorism, as well as matters related to the anti-fraud plan, among others.
- As regards risk management, it approves the Capital and Liquidity Self-Assessment exercise,
which is submitted annually to Bank of Spain, as well as the Risk Appetite Framework and
receives information on the MAR scorecard, as well as information of prudential relevance, the
monitoring of risk limits and the position of borrowers.
PRESIDENT
The President is the chief executive of the entity, with the functions and under the terms provided for
in the Bylaws
1
.
Appointed by Agreement of the Council of Ministers of June 22, 2018
(Royal Decree 683/2018), José Carlos García de Quevedo Ruiz holds
a degree in Economics and Business Studies in Universidad
Complutense of Madrid and is a Commercial Technician and State
Economist.
He has previously been Executive Director of Invest in Spain at ICEX,
Spain Export and Investment, responsible for attracting and
promoting foreign direct investment in Spain and attracting
international financing for new investment projects.
His previous responsibilities include Director General of Trade and
Investment in the Secretariat of State for Trade of the Ministry of
Economy and Competitiveness; Chief Economic and Commercial
1
https://www.boe.es/buscar/act.php?id=BOE-A-1999-10738
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
12
Director in the Permanent Representation of Spain to the European Union in Brussels and Director
General of Insurance and Pension Funds in the Ministry of Economy and Finance.
He has been a member of Committees and Councils of Directors of numerous companies and funds,
including: ICO, ICEX, CESCE, COFIDES, FIEM, Crédito y Caución, Consorcio de Compensación de
Seguros and Repsol Gas.
He has written and published numerous articles on economics, finance, trade and investment and is
an active speaker at business and professional conferences and forums both in Spain and abroad.
MANAGEMENT BODIES
Management and Strategy Committee
The Management and Strategy Committee is the body that assists the President in the exercise and
development of his functions and powers, and facilitates coordination between the ICO’s different
Directorates General.
The Management Committee’s functions, structure and composition are defined in the Circular on
collegiate bodies.
Functions
The functions of the Management and Strategy Committee are basically to direct the ICO’s actions by
determining, promoting and coordinating the following matters, without prejudice to the powers of
approval that other bodies may have, in particular the Operations Committee or the General Council:
➢ The ICO’s strategy, analysing and debating it, the approval of which corresponds to COPER
and/or the General Council.
➢ The ICO’s objectives, as well as the management of the processes leading to their
implementation (Management by Objectives).
➢ Action programmes, policies, products and activities of the various organisational units
into which the ICO is structured and the evaluation of their results in terms of the fulfilment of
the ICO’s purposes and functions, as well as proposals for improvement, particularly in the
light of this assessment of results.
➢ The ICO’s positioning of the ICO both nationally and internationally.
➢ Proposals for new products that entail significant change; organisational, human resources
and information systems strategies to achieve greater motivation and professional
performance; and processes for adapting ICO's current technology and processes to the new
digital environment.
Structure and composition
The Management and Strategy Committee is made up of the President, the Institute’s General
Managers, the Legal Department, the President’s Office and Axis General Management. At December
31, 2023, the composition was the following:
NAME
POSITION
José Carlos García de Quevedo
Ruiz
President
Antonio Cordero Gómez
Director General for Finance and Strategy
Rosario Casero Echeverri
General Business Director
Vacante
Director General for Risk and Financial Control
José Manuel Pacho Sánchez
Director General Technical and Resources
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
13
Cayetana Lado Castro-Rial
Legal Director
Begoña Amores Serrano
Director of the Department of Communication and Cabinet
Guillermo Jiménez Gallego
AXIS Managing Director
Lucinio Muñoz Muñoz
Director of the Fundación ICO
Changes in 2023
During the financial year 2023, Miguel López de Foronda Pérez left as General Manager of Risks and
Financial Control.
Remuneration system
The members of the Steering and Strategy Committee do not receive specific remuneration for
attending meetings.
The President of the ICO has the status of “senior official” (Law 3/2015 of 30 March, regulating the
exercise of senior positions in the General State Administration). The remuneration regime of the
President of the ICO is set by the Secretary of State for Budgets and Expenditure of the Ministry of
Finance. The gross annual remuneration of the President of the ICO, for the financial year 2023,
amounts to 150,793 Euros, an amount that includes all the remuneration to be received for the
performance of the post, except for the seniority that may correspond to him/her in accordance with
the regulations in force and including, where applicable, any remuneration in kind.
The ICO has four General Management posts and one Legal Advisory Management post, which are
considered to be “Senior Management”. The remuneration system for ICO Senior Management is
regulated by Royal Decree 451/2012, of 5 March, which regulates the remuneration system for senior
managers and executives in the public business sector and other entities. The ICO's Ministry of
Finance and Public Administrations is responsible for setting remuneration, which is subject, in all
cases, to the limits established in the Ministerial Order of April 12, 2012 of the Ministry of Finance and
Public Administrations approving the classification of public business entities and other public law
entities.
Regulations governing the remuneration policy for senior management staff guarantee equal pay for
men and women. The five senior management positions at ICO received an average gross annual
remuneration of 135,627 Euros in 2023, including variable remuneration linked to the achievement of
objectives. These positions, like the rest of the staff, are also covered by meal vouchers, medical
insurance and life insurance. The amount indicated does not include amounts received for length of
service, where applicable.
Total remuneration accrued by senior management in 2023, including this remuneration in kind,
except for the seniority that may correspond to the holder of the post in accordance with current
regulations, amounted to 693,810 Euros.
Finally, in accordance with the provisions of article 8 of the aforementioned Royal Decree 451/2012,
senior management does not receive any remuneration for attending meetings of the governing or
administrative bodies of public bodies and of the Councils of Directors of state-owned companies.
OPERATIONS COMMITTEE
This collegiate management body exercises decision-making and advisory powers within the terms
and limits delegated to it by the General Council or by the President.
Structure and composition
At December 31, 2023, the composition of the Operations Committee was the following:
NAME
POSITION
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
14
José Carlos García de Quevedo
Ruiz
President
Antonio Cordero Gómez
Director General for Finance and Strategy
Rosario Casero Echeverri
General Business Director
Vacancy
Director General for Risk and Financial Control
José Manuel Pacho Sánchez
Director General Technical and Resources
B. AXIS
Pursuant to Article 13 of the Company's Articles of Association, the powers of governance,
administration and representation of the Company are vested in the General Meeting of Shareholders,
the Council of Directors and its President.
COUNCIL OF DIRECTORS
It is the governing body responsible, among other functions, for the judicial and extrajudicial
representation of the Company and the full management and administration of all matters relating to
the corporate purpose and its assets and business, being empowered to enter into and execute all
kinds of civil and commercial acts and contracts of administration and ownership, whatever the nature
of the assets to which they refer and the person or entity they affect, and to approve investment and
divestment decisions.
According to the Articles of Association, the Council of Directors shall consist of a minimum of three
and a maximum of nine members.
Composition of the Council at 31.12.2023:
NAME
POSITION
APPOINTMENT
DATE
José Carlos García de
Quevedo Ruiz
President
President of the ICO
27/06/2018
Rosario Casero Echeverri
Vice-President
General Business Director of ICO
23/07/2018
Blanca Gloria Navarro
Pérez
Vocal
Director of Strategy and Sustainability at
ICO
19/09/2018
Mª Elena Aranda García
Vocal
Director of Mediation and SMEs at ICO
25/05/2017
Luis Javier Morales
Fernández
Vocal
Director of Budget and Financial Control,
ICO
25/05/2017
Jaime Cervera Madrazo
Vocal
Head of ICO's Operations Administration
Department
29/09/2015
Antonio Bandrés Cajal
Vocal
ICO Director of International Finance and
EU Affairs
27/04/2017
Begoña Amores Serrano
Vocal
Head of the Communications and Cabinet
Department of ICO
14/09/2022
Fernando Hernández
Domínguez
Vocal
Adviser in the Cabinet of the Secretary of
State for Economic Affairs and Business
Support
19/10/2022
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
15
Cayetana Lado Castro-
Rial
Secretary non Director
Director of the Legal Department of the
ICO
22/02/2021
Changes in the composition of the Council during 2023
No changes during 2023.
Equality and diversity on the Council of Directors
At December 31, 2023, there were 4 women on the AXIS Council of Directors (44.4%).
Directors’ allowance policy
The members of the Council of Directors receive remuneration for attending Council meetings, except
for the President and Vice-Chairwoman, who, as they hold senior management contracts,
respectively, are not entitled to receive attendance fees for attending Council meetings, in accordance
with the legislation in force applicable to them in each case. The maximum remuneration for attending
council meetings is established by Ministerial Order of the Ministry of Finance.
In 2023, the annual remuneration received by each of the members of the Council of Directors
amounted to 6,809.77 Euros, the same amount as in 2022. There is no gender pay gap in the
remuneration of the AXIS Council of Directors.
In 2023, the Company did not incur any pension obligations to former or current members of the
Council of Directors and senior management, nor did it have any obligations assumed on their behalf
by way of guarantee. There were also no loans or advances to members of the Council of Directors
and senior management.
Incompatibilities
No director of the managing company (AXIS) is a director of another company in which AXIS has an
interest through the managed funds.
Prohibitions on holding office
No member of the Council of Directors has informed the Company during 2023, that he or she has
been indicted or tried for any of the offences set forth in article 213 of the Spanish Corporate
Enterprises Act (Ley de Sociedades de Capital).
COMMISSIONS AND COMMITTEES
AUDIT AND CONTROL COMMITTEE. A specialised body set up within the Council of Directors to
provide it with support and technical assistance in supervisory matters.
INVESTMENT COMMITTEES. There is one for each of the following funds: FOND-ICO SMEs, F.C.R.,
FOND-ICO Next Tech, F.C.R. and FOND-ICO Sostenibilidad e Infraestructuras II, F.I.C.C., the
majority of whose members are appointed by Axis or ICO and are made up of at least two independent
members. These are the bodies responsible for approving investment and divestment transactions
prior to their approval by the Council of Directors.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
16
C. FUNDACIÓN ICO F.S.P.
The Fundación ICO has two governing bodies: the Council of Trustees and the Executive Committee.
GOVERNMENT BODIES
COUNCIL OF TRUSTEES
This is the governing, administrative and representative body of the Foundation. It is made up of at
least six members. The President of the Council of Trustees is the President of ICO. It also has a
secretary, who is the Secretary of the General Council of ICO.
At December 31, 2023, the Council of Trustees was made up of nine personalities from the economic,
cultural and scientific world, five of whom are men and four of whom are women.
NAME
TITLE
POSITION
José Carlos García de Quevedo
Ruiz
President
President of the ICO
Antonio Cordero Gómez
Vice-President
and Trustee
Director General of Finance and Strategy, ICO
Eva María González Díez
Trustee
Director of the Legal Department of the Mutua
Madrileña Group
Pedro Nueno Iniesta
Trustee
Technical Architect, Industrial Engineer and
Doctor in Business Administration from Harvard
University.
Concepción Osácar
Garaicoechea
Trustee
Azora’s Managing Partner
Cecilia Pereira Marimón
Trustee
Commissioner of Xacobeo 2021 and Director of
the S.A. do Plan Xacobeo
Juan José Toribio Dávila
Trustee
Professor Emeritus of Economics and President
of the CIIF at IESE Business School
Pablo Vázquez Vega
Trustee
University Professor of Applied Economics
Marta de la Cuesta González
Trustee
Professor of Applied Economics (UNED)
Lucinio Muñoz Muñoz
Non-Trustee
Foundation
Director
Director of the Fundación ICO
Cayetana Lado Castro-Rial
Non-Trustee
Secretary
Secretary of the General Council of the ICO and
Director of the ICO’s Legal Department.
Changes in the composition of the Council of Trustees during 2023
No changes during 2023.
Equality and diversity in the Council of Trustees
At December 31, 2023, there were 4 women out of a total of 9 members on the Council of Trustees
of the Fundación ICO (44%).
Allowance policy of the members of the Council of Trustees
The members of the Council of Trustees do not receive any financial remuneration for the performance
of their duties.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
17
COMMITTEES
EXECUTIVE COMMITTEE.
This body is responsible for studying and proposing the Foundation’s programmes and specific actions
to the Council of Trustees. It acts as a resolution and agreement body in those matters that for reasons
of urgency so require, except for the approval of accounts, action plan and functions attributed to the
Council of Trustees that cannot be delegated.
The Executive Committee is chaired by the President of the Council of Trustees and consists of a
minimum of three trustees and a maximum of five.
At December 31, 2023, the following members of the Executive Committee were members of the
Council of Trustees:
NAME
POSITION
José Carlos García de Quevedo Ruiz
President
Eva María González Díez
Member
Pablo Vázquez Vega
Member
Antonio Cordero Gómez
Member
The meetings of the Executive Committee are attended by the Director of the Foundation, who has
the right to speak but not to vote.
Changes in the composition of the Executive Committee during 2023
No changes in the composition of the Executive Committee during 2023.
ART ADVISORY COMMITTEE
Its functions are to advise on the design of the ICO Museum’s programming. In 2023, it is made up
of:
➢ Francisco Javier Martín Ramiro, Director General of Housing and Land. General Secretariat
of the Urban Agenda and Housing. Ministry of Transport, Mobility and Urban Agenda.
➢ Museo Nacional Centro de Arte Reina Sofía, represented by its Director, Manuel Segade
(Manuel Segade has succeeded Manuel Borja-Villel as Director of MNCARS).
➢ Martha Thorne, Associate Dean for External Relations, IE School of Architecture and Design
(resigned in 2023, pending replacement)
➢ Jorge Ribalta, photographer and curator of exhibitions.
1.4 MATERIALITY ANALYSIS
For the preparation of this report, an analysis has been carried out which has determined that, given
that the context and the activity carried out during 2023, has not changed significantly, the conclusions
of the materiality study carried out on January 2023 are still fully valid and are set out below. It is
planned that during 2024 this exercise will be updated to bring it into line with the current situation,
based on the best standards and future requirements in this area.
This materiality study was initiated through an exhaustive process of internal and external analysis to
identify relevant aspects, trends and frameworks.
In line with the best standards in the field, the study was conducted from a dual materiality and impact
assessment perspective. The methodology takes into account, on the one hand, the actual and
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
18
potential impacts of the Group’s activity externally (outward) and the actual and potential impacts that
material topics may have on the Group (inward).
An essential element of the analysis is the stakeholder consultation, which was carried out in a
formalised way through surveys. Responses from 480 surveys were taken into consideration. The
following stakeholder groups participated:
• Workers
• Self-employed and companies of all sizes
• Financial institutions
• Analysts, consultants, auditors
• Investors
• Business and sectoral associations
• Public administrations
• Social organisations
• Media.
This formalised consultation exercise is complementary to the Group’s regular approach to
stakeholder engagement, which is carried out on an ongoing basis through different channels as
detailed in the document.
In addition, an exercise was carried out to identify the impacts associated with each of the issues on
the economy, the environment and people. Taking into account the severity and probability of
occurrence, a prioritisation of the issues is established through the results of the exercise both outward
and inward.
Based on the methodology used, 17 issues were identified that have exceeded the materiality
threshold and are therefore considered material topics for the ICO Group.
MATERIAL TOPICS
ICO GROUP 2023
DESCRIPTION
MT1 - Good Corporate
Governance,
Transparency and
Business Ethics
Maintaining good corporate governance, ethics and transparency requirements builds
trusting relationships with the institution and reduces reputational risks.
The management of this aspect has a direct impact on investors, as proper risk
management provides security and protection of their capital. For other stakeholders
such as employees or society, this aspect translates into greater job stability and wealth
generation.
Context
Understand the
context of the
organisation
through
documentation
study and
benchmark
analysis
(comparables and
financial sector).
Stakeholders
A formal
stakeholder
consultation
process has been
carried out
through a survey.
Management
The importance
of each topic for
the ICO Group
has been
assessed in the
Management
Committee.
Impacts
The different
impacts of the
different material
topics have been
assessed.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
19
MT2- Financial and non-
financial risk
management
Appropriate risk management favours the confidence of the different stakeholders
towards the entity, offers peace of mind to investors and customers by protecting and
creating value to achieve the proposed objectives, improves its competitiveness, shows
the organisation’s proactivity and enhances its reputation.
MT3 - Sustainable
financing linked to ESG
criteria
The integration of ESG (Environmental, Social and Governance) criteria in ICO’s activity,
together with traditional financial and risk criteria, allows us to offer clients long-term
financing and investment products that contribute to preventing and mitigating climate
change, to fostering the transition towards a carbon neutral economy and to promoting
social development, with the consequent positive impact on all stakeholders and the
environment.
MT4- Economic Solvency
and Resilience
Maintaining a good performance in this aspect has an impact on all of the entity’s
stakeholders, generating value, wealth and security for them.
MT5 - Privacy, data
protection and cyber-
security
Implementing a rigorous privacy and data protection policy is essential to guarantee
customers, investors and society in general control over their personal data, its use and
destination in order to prevent its unlawful and harmful treatment of their personal
rights and freedoms. Likewise, promoting cybersecurity allows all employees to work
safely, directly impacting on the improvement of their productivity.
MT6 - Digital
transformation and
innovation
Digitalisation is one of the main vectors for promoting competitiveness, productivity,
sustainable economic growth and job creation, as well as providing the productive
fabric with greater resilience to face future shocks and dynamism to take advantage of
new opportunities. ICO provides the Spanish business fabric with different mechanisms
that promote the necessary investments to undertake the digital transformation of
companies, especially SMEs and start-ups, and industry in terms of R&D&I. It is also a
relevant aspect for the rest of the stakeholders as it contributes to promoting social
cohesion.
MT7 - Public-private
collaboration
As stated in SDG 17, public-private collaboration are essential to improve the
effectiveness and impact of business activity, as well as to accelerate progress towards
the Sustainable Development Goals set out in the 2030 Agenda, which directly impacts
all stakeholders.
MT8 - Support for the
productive fabric and
value creation
Support for the productive fabric is a key enabler for boosting economic activity in our
country and promoting shared prosperity. It has a direct impact on job creation,
financial stability and the stimulation of economic activity through the various financial
formulas and initiatives made available to companies and the self-employed.
MT9 - Respect for Human
Rights
Respect for human rights must be at the heart of any organisation’s sustainability
strategy, regardless of its size and sector. The 2030 Agenda is closely linked to human
rights, so avoiding rights impacts in the value chain and with stakeholders can be
synonymous with important contributions to the SDGs.
Human rights are necessary to protect and preserve everyone’s humanity, to ensure
that all people can live a life of dignity.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
20
MT10 - Customer
Experience and
Satisfaction
Offering a service that meets customer demands has a direct impact on building long-
term relationships. In the rest of the stakeholders, the impact on investors stands out,
where quality and excellence translate into greater profitability. Employees and
suppliers perceive a high level of demand and need for specialisation. The bank’s good
performance in these aspects has a direct impact on stakeholders, as it enables them
to maintain their confidence in the ICO and protect their interests.
MT11 - Talent
management, training
and development of your
professionals
Attracting and retaining talent in turn ensures good financial results for investors and
a higher level of service, resulting from high levels of employee satisfaction. It also has
an impact on improving employee performance, behaviour and the working
environment, which leads to increased employee satisfaction and therefore overall
productivity. Training actions, for their part, have a direct impact on ICO employees,
enabling them to grow professionally and providing them with the tools to achieve their
professional goals. In turn, specialisation favours greater profitability derived from
better results and an improvement in the level of service perceived by customers.
MT12 - Employee safety,
health and welfare
The objective of the implementation of Occupational Health and Safety is to anticipate,
recognise, evaluate and control risks that may affect the safety and health of the
organisation’s employees, which directly impacts on the promotion of maintaining the
physical, mental and social well-being of employees.
MT13 - Diversity,
inclusion and equal
opportunities
A diverse and inclusive work environment makes employees feel happier and more
confident, improving their well-being, self-esteem and pride in belonging. It also has a
direct impact on under-represented groups as inclusion is the foundation of a society’s
prosperity, economic, political and social development.
MT14 - Financial
education
Education is a basic pillar for financial inclusion and for the protection of users of
financial services. By teaching financial concepts, it helps people to make better
decisions on how to manage their resources, thus contributing to the safety and
security of their finances. It has a direct impact on improving understanding of
economic concepts, reducing information asymmetries between clients and providers
of financial services, protecting the most vulnerable through targeted approaches and
supporting market stability.
MT15 - Social
engagement and
community impact
Carrying out its activities through the prism of social commitment and positive impact
on the community contributes to the development of local economies and different
groups, through the generation of employment and financial empowerment. It also
improves the image that customers have of the institution as a responsible institution,
has an impact on its positioning, intensifies the relationship and commitment with its
employees, increases the likelihood of finding new investors and improves its
relationship with all stakeholders.
MT16 - Environmental
protection, combating
climate change and
energy transition
Focusing the purpose of the operations financed and to be financed in the coming
years, among others, on green finance related to sustainable mobility; the
development of renewable energies, renewable hydrogen; energy efficiency; the
circular economy, water treatment, improved energy efficiency and sustainability of
buildings, improved accessibility in buildings/housing, urban and rural regeneration
and renovation, transport infrastructure projects or construction and rehabilitation of
social or affordable housing, has a direct impact on the environment and society.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
21
MT 17 - Just ecological
transition
Contributing to a just ecological transition is a key line of action proposed by the
International Labour Organisation and the United Nations Framework Convention on
Climate Change, to maximise benefits in activity and employment and minimise the
negative impacts of the ecological transition and decarbonisation.
These material topics were prioritised according to the criteria of impact and relevance in both
directions: from the outside in, taking into account potential impacts, their severity and likelihood of
occurrence, and from the outside in, insofar as they may affect the Group’s commitments, results,
current situation or future development. This analysis gave rise to the following materiality matrix, in
which the aspects furthest from the source are those to be considered most relevant for the
organisation.
There is a relationship between the material topics and the strategic axes and action plans
contemplated in the current Strategy, and also in the contribution to the Sustainable Development
Goals, as can be seen in the following summary table of the most significant ones.
Catalogue of
material topics
2023
STRATEGIC AXES 2022-2027
SDGs
MT1
AXIS 4. - Governance
MT2
MT9
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
22
MT7
AXIS 1 - Business growth
AXIS 3 - Digitalisation
MT4
AXIS 1- Business growth
AXIS 4 - Governance
MT3
AXIS 1 - Business growth
AXIS 3- Sustainable finance
MT5
AXIS 2 - Digitalisation
AXIS 4 - Governance
MT6
MT10
MT8
AXIS 1 - Business growth
AXIS 2 - Digitalisation
AXIS 3 - Sustainable Finance
MT16
AXIS 3. - Sustainable Finance
MT17
MT11
AXIS 4. - Governance
MT12
MT13
MT15
AXIS 4. - Governance
MT14
This materiality study was discussed in the Sustainability Committee and was incorporated into the
2022 NFIS and approved in accordance with the applicable procedures.
Compared to the previous year, the material topics and the study that supports them are maintained,
as mentioned at the beginning.
1.5 ICO GROUP’S STRATEGY
ICO Group Strategy 2022-2027 and Resource Allocation of the Addendum to the Recovery,
Transformation and Resilience Plan.
The ICO Group’s Strategy for the period 2022-2027 was approved by the ICO General Council on
November 25, 2021 and is structured around ICO as a credit institution, AXIS as a private equity fund
manager, 100% owned by ICO, and Fundación ICO as a state public foundation that carries out its
activities under the sole sponsorship of ICO.
The ICO Group’s Strategy 2022-2027 is defined around 4 strategic axes (Business Growth and
Competitiveness, Digital Transformation, Sustainable Finance, and Corporate Governance) and 20
action plans aimed at mobilising resources at national and EU level, in collaboration with the private
sector and the rest of the Public Administrations, through a broad and flexible catalogue of financial
products to improve access to long-term financing for companies, especially SMEs, midcaps, the self-
employed, entrepreneurs and social economy entities, to boost their national and international activity
and have a greater capacity for innovation, competitiveness and generation of quality employment.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
23
Since 2023, the channelling of European resources allocated in the Addendum to the RTR Plan, within
the Recovery and Resilience Mechanism (RRM), a new activity that was not included in the Strategy
approved by the ICO’s General Council on November 2021, takes on special relevance for the ICO
Group. On June 6, 2023, the Council of Ministers approved the Addendum to the RTR Plan to mobilise
all European Next Generation funds and complete the process of modernising the Spanish economy.
Following the approval of the Addendum to the RTR Plan, on October 2, 2023, by the European
Commission and on October 17, 2023, by the EU Council, ICO Group will channel RRM loans
amounting to 39,862 million Euros until 2026, which will be processed through the mediation lines,
direct financing programmes and venture capital to finance Spanish companies on favourable terms
for investment projects that facilitate adaptation to the dual green and digital transition, as well as
social and territorial cohesion. The Addendum to the RTR Plan will boost Spain’s strategic autonomy
in the energy, agri-food, industrial, technological and digital fields. During 2023, the ICO Group,
together with the Ministries involved in the measure, have designed the terms and conditions for the
implementation of the RRM, as well as the signing of agreements, the development of the IT platform,
the launch of the different Facilities and the establishment of the different financial instruments for
making these European funds available in the real economy from 2024.
ICO Group has demonstrated its ability to meet the challenges it has faced in the past, such as the
economic crisis of 2008-2014, the health crisis since 2020, and the crisis arising from the war in
Ukraine, since 2022, adapting its activity to the needs of each moment to provide financing to the self-
employed and companies of all sizes and from all sectors, especially those most affected by the
situation at any given time. Over the coming years, ICO Group will continue to work on its commitment
to support the growth of Spanish companies, promote their digitalisation process and accompany
them in their transition towards more sustainable models, contribute to the achievement of economic
policy objectives and boost growth, job creation and the transformation and strengthening of the
Spanish economy, all in line with the Spanish Government’s Recovery, Transformation and Resilience
Plan, the Next Generation EU Programme and the EU’s Multiannual Financial Framework 2021-2027.
Our principles
The activity carried out by the ICO is governed by a series of principles that guide its actions in the
performance of each of its functions.
Business growth and
competitiveness
Boosting the business
growth, competitiveness, and
resilience of the Spanish
economy and the generation
of employment.
Digital transformation
Boosting the digital
transformation of the
Spanish productive fabric
Sustainable Finance
Promoting the ecological
transition and the
environmental, social and
governance (ESG)
sustainability of the Spanish
business fabric.
Corporate Governance
Strengthening governance and
digital/technological resources,
driving organisational
transformation and expanding
institutional, communication
and CSR activity
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
24
The Strategy 2022-2027 in figures
ICO Group is financed through various instruments in the capital markets and always under market
criteria, not through the General State Budget. It has the explicit, irrevocable, unconditional and direct
guarantee of the Spanish State for the debts and obligations it incurs by raising funds. The ICO
Group’s objective is, among others, to be present in the capital markets through its regular issues,
mainly through green and social bonds. In 2023, ICO continued to consolidate its position as a
benchmark issuer in the European sustainable bond market, with the issuance of its 5
th
green bond
for an amount of 500 million Euros and its 10
th
social bond for an amount of 500 million Euros. With
these new operations carried out during 2023, ICO has issued a total of 15 sustainable operations (10
social and 5 green) for a total amount of 7,550 million Euros that are channelled towards projects of
Spanish companies to boost sustainable growth.
The promotion of sustainability is one of the strategic axes of the ICO Group’s strategy, with the
objective that 40% of the volume of its new operations should be made under sustainability criteria in
the period 2022-2027. During 2023, according to ICO’s internal criteria, the percentage of direct
sustainable approvals represents 46% of the total new approvals of ICO’s direct activity, which
translates into a volume of 2,846 million Euros of approved sustainable financing and a mobilised
investment of 16,314 million Euros.
As mentioned above, the Addendum to the Spanish Government’s RTR Plan envisages the
channelling by the ICO Group, in public-private collaboration, of an amount of 39,862 million Euros
until 2026 through the lines of mediation, direct financing and venture capital (Axis), distributed in the
ICO-Green Facility of 22,000 million Euros, the ICO-Enterprises and Entrepreneurs Facility of 8,150
million Euros (7,000 million Euros for boosting the productive fabric, 1000 millon Euros for financing
the tourism sector towards a more sustainable model and 150 million to finance the PERTE of the
New Language Economy), the Next Tech Fund of 4,000 million Euros (an existing fund but with an
increase in the amount in RRM), the Audiovisual Hub Facility for 1,712 million Euros and the Facility
for the Promotion of Social Rental Housing for 4,000 million Euros, as shown in the table below. For
the management of these amounts, public-private collaboration will be of great importance, especially
with financial institutions, in order to reach companies of all sizes and in all sectors of activity
throughout Spain.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
25
Facilities / Funds Financed from Loans - ICO Group
Name of the Facility
million
€
Destination of resources
RRM-Green ICO Facility
C13.I6
22.000
Resources to increase the funding available for the green
transition
i) Sustainable Transport
ii) Energy Efficiency
iii) Renewable Energy & Energy Storage &
Transmission
iv) Decarbonised industry and value chains
v) Water treatment (Water resources)
vi) Circular Economy
vii) Adaptation to Climate Change
ICO RRM-Business and
Entrepreneurship Facility:
C13.
8.000
[+150]
Resources for financing business growth and resilience, with a
specific sub-line dedicated to companies in the tourism sector.
[PERTE Language]
RRM Next Tech Funds
for scaling tech startups:
C13.I7
4.000
Funding for technology start-ups and scale-ups
ICO RRM Spain Audiovisual
Hub Facility. C25.I3
1.500
[+212]
Loans and other financial instruments for companies in the
audiovisual sector in order to promote productions made by this
industry [PERTE Language].
ICO RRM facility for the
promotion of social rental
housing: C2. I7
4.000
Increase the stock of social or affordable rental housing, as well
as improve the existing stock of social housing.
Total
39.500
[+362]
[New PERTE Spanish and Co-Official Languages]
As part of the ICO Group’s strong commitment to supporting digital transformation, it is worth
highlighting its participation in the European Tech Champions Initiative (ETCI), a new fund of funds to
finance innovative start-ups in Europe. During 2023, ICO Group has formalised an amount of 400
million Euros in this initiative through FondICO Next Tech and plans to raise up to 1,000 million Euros
in a second phase.
The channelling of loans from the Addendum to the RTR Plan for an amount of almost 40,000 million
Euros in the period 2024-2026 means that ICO Group will play an even more important role in
supporting the Spanish business fabric, in the dual green and digital transition and in social and
territorial cohesion. These funds will promote, in public-private collaboration, among others,
investments by the self-employed and companies in renewable energies, energy efficiency and
circular economy, supporting companies in their adaptation to the new framework of sustainability of
the economy, as well as in strengthening their competitiveness and access to new markets. They will
also promote actions with a positive social impact, such as the construction of rental housing.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
26
1.6 ICO INVESTEES
Instituto de Crédito Oficial has shareholdings in the following entities:
➢ Axis Participaciones Empresariales, SGEIC, S.A. S.M.E. (AXIS) a private equity fund manager
incorporated in 1986. ICO owns 100% of the share capital.
➢ Compañía Española de Reafianzamiento, S.A. (CERSA). ICO’s shareholding is 24.39% of the
share capital. It is a state-owned company attached to the Ministry of Industry, Trade and Tourism.
Its objective is to make it easier for SMEs and the self-employed to obtain all types of financing,
with special emphasis on recently created and smaller companies. CERSA provides support
through its counter-guarantee to the Reciprocal Guarantee System in Spain, which is made up of
CERSA itself, the 20 guarantee companies and SAECA.
➢ Compañía Española de Financiación del Desarrollo, COFIDES, S.A., S.M.E. The
shareholding is 20.31% of the share capital. It is a state-owned company, attached to the Ministry
of Industry, Trade and Tourism. Its purpose is to finance viable private investment projects abroad
in the medium and long term in which there is some kind of Spanish interest, in order to contribute,
with profitability criteria, both to the development of the countries receiving the investments and
to the internationalisation of the Spanish economy and companies.
➢ European Investment Fund (EIF). ICO has been a shareholder since its foundation in 1994 and
currently holds a 0.66% equity stake. The main shareholder is the EIB and its main objective is
to facilitate financing for SMEs in Europe through venture capital and debt products, such as
portfolio guarantees and securitisation.
➢ European Datawharehouse (EDW), GmbH. The ICO’s shareholding is 3.57%. EDW is a
repository of securitisations registered with ESMA and the FCA that collects data on the loans
that make up securitised portfolios for use by investors and other market participants in their
analysis, providing the market with greater transparency. Through EDW data, users can analyse
underlying portfolios and compare portfolios in a systematic way.
➢ Society for Worldwide Interbank Financial Telecommunication, SCRL (SWIFT). The ICO has
been a member of this society since 2008. SWIFT was created in 1986 under Belgian law to
provide a secure network that enables financial institutions around the world to send and receive
information on financial transactions. The company has around 2,400 shareholders worldwide, of
which 27 are Spanish financial institutions. This participation allows ICO to use this platform to
carry out financial transactions in a secure, standardised and reliable environment.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
27
1.7 PUBLIC-PRIVATE PARTNERSHIPS AND COLLABORATION
Collaboration with other economic agents is a hallmark of the ICO Group’s
activity. These alliances can be grouped into several groups:
• Business alliances for the better distribution of financial products: this
includes agreements with intermediary financial institutions, collaboration with other banks in
syndicated loans, the network of collaborating agents, agreements with foreign institutions within
the framework of the International Channel, liability agreements with international institutions for
better financing and collaboration with Funds participating in initiatives promoted by AXIS.
• Partnerships in sustainability. ICO Group plays a very active role in relevant sustainability
partnerships as detailed in point 3.2.4 below.
• Also very relevant are the agreements with other Spanish public sector entities for the launch
of joint sectoral initiatives as detailed in this document, in many cases to channel funds within the
framework of the Recovery, Transformation and Resilience Plan.
• For their part, agreements with European institutions are an essential part of the ICO Group’s
role in channelling funds, in the context of the Multiannual Financial Framework in force at any
given time, with initiatives such as the management of InvestEU guarantees, among others.
• There is also ongoing dialogue and collaboration with business and sectoral associations and
third sector entities. The process of dialogue with chambers of commerce, general and sectoral
business associations, bank employers’ associations and third sector associations and
organisations enables a channel of communication and cooperation to be established to ensure
that information on the ICO Group’s activities is known and disseminated, and to gather their
concerns. This is also achieved through the establishment of collaborations that take the form of
specific initiatives.
• In general, there is also fluid collaboration in formal and informal forums with other national
promotional banks at the international level, which has given rise to joint initiatives in different
areas. It also participates in international associations such as NEFI (The Network of European
Financial Institutions for Small and Medium Sized Enterprises), ELTI (European Long-Term
Investors Association), ALIDE (Asociación Latinoamericana de Instituciones Financieras para el
Desarrollo) where joint initiatives and collaborations are promoted in their fields of action.
Information on agreements signed by the ICO within the framework of Law 40/2015 of 1 October is
available on the Transparency Portal accessible from the ICO website
2
.
In short, the ICO Group’s network of alliances and contacts allows for a variety of formal and informal
communication channels with different stakeholders.
2
https://www.ico.es/web/guest/contratos-convenios-y-subvenciones
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
28
1.8 ECONOMIC AND FINANCIAL ENVIRONMENT OF ACTION
The general economic and financial situation in which ICO Group carries out its activities is very
relevant insofar as it is the context in which it has to develop its activities, and because at the same
time it determines to a large extent the guidelines that the Group adopts to provide the best response
in each situation to the needs of the Spanish economy and its productive fabric.
The Spanish economy continues to grow strongly despite the context of uncertainty at the
global level
In 2023 as a whole, the Spanish economy maintained strong economic growth (2.5%), after the
remarkable post-pandemic recovery observed in 2021 and 2022, with growth of 6.4% and 5.8%,
respectively. Spain demonstrated greater strength than its European shareholders already in 2022
and continued to lead growth in 2023, which has been particularly relevant given the context of
geopolitical tensions and weak external growth, particularly in the Eurozone, due to the impact of
restrictive monetary policy. Specifically, Spanish GDP growth in 2023 was five times higher than that
of the Eurozone average.
Having surpassed the pre-pandemic GDP in the third quarter of 2022, and after beating the growth
forecasts for 2023, projections for 2024 and 2025 once again place Spanish growth at levels above
the rest of the major Euro Zone economies. According to the latest IMF forecasts, Spain would grow
by 1.5% in 2024 and 2.1% in 2025, compared to the estimated growth for the Euro Zone as a whole
of 0.9% and 1.7%, respectively.
Eurozone growth slowed markedly in 2023 to 0.5% from 3.3% in 2022. The impact of monetary policy
tightening, persistent inflation and geopolitical tensions would have led to this weakness in growth.
In turn, the growth of the Spanish economy in 2023 was underpinned by a favourable performance of
both domestic demand and the foreign sector. Within domestic demand, private consumption slowed
but remained strong, supported by the improvement in purchasing power and the good performance
of the labour market, while investment grew to a lesser extent than last year. The momentum of the
external sector was driven by the resilience of trade in goods, the remarkable recovery in tourism and
the dynamism of trade in non-tourist services.
With regard to the labour market, job creation in Spain accelerated in 2023. According to data from
the Labour Force Survey (EPA), 783,000 jobs were created in 2023, equivalent to an increase in
employment of 3.8%, thus showing a higher rate of job creation than in 2022 (279,000 new jobs with
a growth rate of 1.4%). As a result, the number of employed persons reached an all-time high
(21,246,900). The unemployment rate continued its downward trend, standing at 11.8% in the fourth
quarter of 2023, more than one point below the rate in the fourth quarter of 2022 (12.9%), while the
number of unemployed ended 2023 at 2,830,600, 6.4% lower than in 2022 and its lowest figure at the
end of the year since 2007. In terms of the number of workers affiliated to Social Security, the data
also evolved favourably, with an increase in affiliation in 2023 of 2.7% with respect to.
In short, in a context of high uncertainty and lower economic growth in the international arena, the
Spanish economy maintains differential growth thanks to the dynamism of the labour market, the
positive evolution of the foreign sector, the solid assets of households and companies and the rapid
deployment of the Recovery Plan.
Inflation moderated sharply over the year
General inflation moderated sharply during 2023, to the lowest levels in two years and the underlying
rate has also shown a gradual deceleration trend, to which the lower inflationary pressures in energy
prices and raw materials, the restrictive monetary policy of the European Central Bank and the
measures implemented by the Government to alleviate inflation, have contributed. In Spain, average
inflation was 3.5% in 2023, correcting part of the sharp price increase observed in 2022 (annual
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
29
average 8.4%) and headline CPI ended 2023 at 3.1% y-o-y on December. Core inflation averaged
6% for 2023 as a whole, above the average for 2022 (5.2%), and ended the year at 3.8% y-o-y on
December, progressively narrowing the differential with the headline index. In the Eurozone as a
whole, inflation averaged 5.5% in 2023, higher than in Spain, but the year-on-year inflation rate as of
December was 2.9%, also reflecting the trend of decelerating prices in the Eurozone during the year.
Forecasts of the main organisations, both for Spain and for the Eurozone as a whole, point to a
continuation of the gradual slowdown in prices in 2024, although they would still be above the
monetary policy target and within a context marked by the high uncertainty linked, mainly, to the future
evolution of energy prices.
The ECB continued to tighten its monetary policy in 2023
The Governing Council of the European Central Bank (ECB) continued in 2023 with the process of
normalising its monetary policy that had already begun in 2022. From July 2022 until September 2023
it decided to undertake ten consecutive policy rate hikes to ensure that inflation returns to its medium-
term objective of 2%. Accordingly, the Governing Council set the main refinancing rate and the interest
rates on the marginal lending facility and the deposit facility at 4.50%, 4.75% and 4.00% respectively,
implying a cumulative increase of 450 basis points in each of the three benchmarks and bringing them
to 22-year highs.
Since September 2023, the ECB has stopped the interest rate hike cycle. The Governing Council
considers that the key ECB interest rates are at levels which, if maintained for a sufficiently long period
of time, make a substantial contribution towards achieving its objective. Looking ahead, the Governing
Council will continue to apply a data-dependent approach to determine the appropriate level and
duration of the interest rate constraint.
Complementary to the rate hike decisions, during 2023, the Governing Council of the ECB has
announced and started to implement a process of reducing the size of the Eurosystem’s balance
sheet, which had been increasing sharply with the various asset purchase programmes.
The momentum of the European funds continued and their power was expanded
The Government of Spain continued to manage European funds from the Next Generation EU (NGEU)
instrument through the Recovery Plan during 2023, which has set in motion an ambitious schedule of
investments and reforms that will have a structural impact on the Spanish economy. With a strong
pace of meeting milestones and targets, Spain has been receiving the agreed payments according to
schedule.
On October 2023, the European Commission approved the Addendum to the Plan, and with it the
second phase of the Recovery Plan, which has an additional 94,300 million Euros, to continue
strengthening strategic projects and with a special focus on the strategic autonomy of Spain and the
EU in the fields of energy, agri-food, industry, technology and digital. Part of the mobilisation of these
new funds will be carried out through the creation of funds and financial instruments, in the
implementation of which ICO plays a very prominent role. The ICO lines will involve up to 40,000
million in loans to support SMEs in particular, strengthen investment in the green and social sphere,
as well as in key future areas in the digital transition, such as start-ups and the audiovisual sector. In
addition, the Autonomous Community Resilience Fund will be launched, with financing of up to 20,000
million Euros, which will enable sustainable investments to be made in the Autonomous Communities,
in collaboration with the European Investment Bank.
Business rates rose in 2023 as a result of the prolongation of the monetary policy
normalisation process
The tightening of the ECB’s monetary policy has continued to make new financing more expensive
and to weaken credit flows to households and firms during 2023. Thus, the average interest rate
applied to the companies in operations of less than 1 million Euros, which may be taken as
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
30
approximation of the rate applied to SMEs, increased from 3.49% at December 2022 to 5.11% at
December 2023.
In terms of financial sector activity in 2023, the volume of new lending business decreased by 7.3%
compared with 2022, following an increase of 19.9% in the previous year, as a result of a stronger
pass-through of monetary policy tightening in 2023. Transactions of less than 1 million Euros
moderated their progress from 14.1% in 2022 to 5.1% and transactions of more than 1 million Euros
fell markedly, by 18.8% in 2023, compared with an increase of 25.7% in the previous year.
The outstanding amount of total credit to enterprises declined by 2.7% in 2023 compared with 2022,
while it remained virtually stable in 2022, according to data from the Bank of Spain.
Asset quality has not deteriorated: Doubtful assets remained at low levels during 2023.
The doubtful assets ratio of Spanish credit institutions remained fairly stable during 2023, remaining
close to the lowest since December 2008. On December 2023 it stood at 3.54%, the same ratio as on
December 2022. This development is explained by a fall in the volume of credit classified as doubtful,
which remains larger than the decline in total credit. With regard to credit to productive activities, its
doubtful assets ratio stood at 4.06% on September 2023 (latest available data), lower than on
September 2022 (4.43%).
Banks’ perceived and expected demand for corporate credit in the bank lending survey declined in
2023 due to the financial environment, while some tightening of approval criteria continued according
to the same source.
With interest rates at high levels, although they are expected to fall, ICO Group must continue to adapt
its range of products to the Spanish productive fabric, as it has done historically. In its role through
intermediary entities, the ICO will continue to offer advantageous conditions so that financing
continues to flow towards the productive fabric, while at the same time continuing to provide direct
financing through the different modalities, with greater emphasis on priority activities in accordance
with the Group’s frameworks and Strategy. Of particular importance in 2024 will be the channelling of
resources from the Addendum to the Recovery Plan, which will entail a significant mobilisation of
resources, in public-private collaboration.
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31
2 OUR MODEL OF VALUE CONTRIBUTION TO THE SOCIETY:
PROMOTING SUSTAINABLE GROWTH
Economic transformation
The ICO Group’s activity has always had a transformative vocation towards the Spanish productive
fabric, as an economic policy tool with the capacity to drive sustainable economic growth through the
different financial initiatives that support companies and the self-employed in their business growth,
investments and in the ecological and digital transition, with a greater capacity to create quality
employment.
Global approach
To this end, ICO Group develops financing and collaboration schemes with the private sector and
other public administrations and bodies to improve or develop its instruments, products and new
initiatives and make them available to Spanish companies of all sectors and sizes for their activities
and investments both in Spain and in international markets.
Adaptation and anticipation
Our ability to adapt and anticipate the needs of the Spanish economy has been demonstrated
throughout the different stages our economy has gone through. The best example of our vocation for
rapid, effective and efficient support was the deployment in record time of the State guarantee lines
in the context of the covid-19 pandemic, which constituted an unprecedented model of public-private
collaboration, with more than one million operations guaranteed and more than 140,000 million Euros
mobilised. It has also been evident in initiatives such as the lines of guarantees to alleviate the effects
of the invasion of Ukraine.
Through a variety of instruments
In addition to traditional products, different initiatives have been incorporated in an attempt to respond
to the needs of the moment. Specific products for specific purposes complement the general financial
offer, which has also been adapted and made more flexible at any given time. It also acts as a driver
of European or national resources or as a manager of State funds. In this respect, the relevant role
that the Addendum to the Recovery Plan reserves for ICO is being implemented through different
products to support our productive fabric
In public-private collaboration
The successful model of collaboration with the private sector, both through financial institutions and
directly with the business community, is a hallmark of our way of operating.
Long-term vision
Our activity responds to the needs of the moment, but does not forget our long-term objectives. The
consolidation of the process of recovery and transformation of the Spanish economy, with the
boost to the ecological transition and digital transformation and the promotion of environmental and
social sustainability and governance, in line with the Sustainable Development Goals, are essential
elements of our actions. Without forgetting the objective of business growth as a source of innovation,
competitiveness and job creation.
Contribution to the economy and society
All of this has positive effects on society at large and on communities. Not only through financial
instruments, but also through a range of other initiatives with a positive social impact.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
32
Sustainability
Sustainability and the transition to a low-carbon, more resource-efficient and circular economy that
safeguards climate balance, biodiversity and human rights are key to ensuring long-term
competitiveness and our development as a society.
For this reason, for the ICO Group, sustainability, which takes into account environmental, social and
corporate governance factors, is a basic pillar integrated into all its activities in a cross-cutting manner,
both in its asset and liability operations and in the internal management of the organisation, from the
perspective of governance and corporate social responsibility. ICO’s sustainability commitments are
set out in the Sustainability Policy, which was reviewed and updated in 2023 and a new version was
finally approved by the General Council on January 2024.
The public commitment to long-term sustainable development is thus maintained, balancing economic
development, social development and environmental protection, through three main lines of action:
the signalling role to other agents who are encouraged to share objectives and commitments; the fight
against climate change and the protection of natural capital; and the promotion of a just and inclusive
transition.
2.1 REFERENCE FRAMEWORKS
The ICO Group, its activity and its strategic orientations discussed in
previous points are consistent with the various frameworks of reference
that the Group has adopted as its own: The priorities of the European
Union, embodied in the EU’s Multiannual Financial Framework 2021-
2027 and the European recovery plan Next Generation EU are going to
drive profound economic transformations. Their translation to Spain,
through the Recovery, Transformation and Resilience Plan and its Addendum, will also determine
the direction of Spain’s economic policy in the short, medium and long term, to which ICO Group will
contribute and support in a decisive manner.
In addition, Law 7/2021 of 20 May on climate change
and energy transition defines the National Integrated
Energy and Climate Plan as the national strategic
planning tool that integrates energy and climate
policy. The National Plan for Adaptation to Climate
Change (PNACC) is the basic planning instrument to promote coordinated action
against the effects of climate change in Spain. Its main objective is to avoid or
reduce present and future damages derived from climate change and to build a
more resilient economy and society.
There are also a series of economic policy guidelines of a thematic or sectoral nature to which ICO
Group contributes through its activity. These include initiatives such as the Plan for the
Internationalisation of the Spanish Economy, Digital Spain 2026 and the National Circular Economy
Strategy, which determine the priorities and actions planned in these areas.
More specifically, in the area of sustainability, ICO Group takes the multiple global, EU and national
initiatives as a reference when defining its sustainability objectives and strategy.
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33
GLOBAL FRAMEWORKS
GLOBAL FINANCIAL SECTOR FRAMEWORKS
UNEP –financial sector: alliance of banks, insurers and investors to catalyse financial
activity for sustainable development
Network of Central Banks and Supevisors for Greening the Financial System: its aim
is to contribute to strengthening the global response needed to meet the
objectives of the Paris Agreement.
Task Force on Climate Disclousure. Dissemination of information on climate risks
and opportunities
Basel Committee on Banking Supervision - High Level Task Force on Climate-related
Financial Risks. Studies on transmission channels and impact of climate risks on the
banking sector
Equator Principles: a framework for environmental risk management in Project
Finance
ICMA: International Capital Market Association. Green Bond (GBP), Social Bond
(SBP), Sustainability Linked Bond (SLBP) and Sustainable Bond (SBG) standards.
Sustainable Development Goals: 17
interconnected global goals designed
to "achieve a better and sustainable
future for all". 2015 UN resolution
called Agenda 2030.
Global Compact - through the UN
mandate to promote the SDGs in the
business sector
Paris Agreements: COP 21
art. 2c.
"to bring financial flows to a
level consistent with a pathway
towards low-emission climate-resilient
development".
United Nations Climate Change
Conferences (COP)
COP25 (Madrid), COP26 (Glasgow),
COP27 (Egypt), COP28 (Dubai)
UN - Environment Programme:
coherent implementation of the
environmental dimension of
sustainable development in the UN
system
Coalition of Finance Ministers for
Climate Action (CAPE) - forum of
economic policymakers to lead the
climate response
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34
At the European Union level, initiatives with a sustainable component are
very important, as well as their translation into concrete instruments in which
ICO Group can play a relevant role. Firstly, the European Green Pact is a
major regional commitment that will transform the EU, ensuring that:
• no net greenhouse gas emissions by 2050
➔ Target 55 - at least 55% by 2030
• economic growth is decoupled from the use of fossil resources
• no people or places are left behind
More concretely, REPowerEU is the European Commission’s plan to make
Europe independent of Russian fossil fuels well before 2030. It is a plan to:
save energy, produce clean energy and diversify our energy supplies.
To boost growth in the aftermath of the covid-19 crisis, Next Generation EU
was launched, an exceptional temporary recovery instrument approved in
2020, endowed with 750,000 million for all Member States. The two largest
instruments of which it is composed are:
• The Resilience and Recovery Mechanism (RRM)
• The REACT-EU Fund
In addition, there is the Invest EU instrument: attracting private investments in support of a
sustainable recovery and contributing to building a greener, more digital and
resilient European economy, where ICO has a relevant role as an accredited
Implementing Partner of the European Commission.
Also at the European level, there are a number of important reference
frameworks for the financial sector. Firstly, it is necessary to mention the
Taxonomy of the European Union: this is the European Commission’s
regulatory development that aims to link the financial sector to the achievement
of the objectives of decarbonisation of the European economy.
It defines sustainable as economic activity that contributes substantially to the
achievement of one or more of the six environmental objectives: climate
change mitigation; climate change adaptation; use of water and marine resources; transition to a
circular economy; pollution control; and protection of biodiversity. This initiative is part of the European
Commission’s Sustainable Finance Action Plan, which is the strategy for the financial system to
support the EU’s climate and sustainable development agenda, as well as the Renewed Sustainable
Finance Strategy.
Other bodies such as the European Banking Authority have established their Sustainable Finance
Roadmap, which defines the objectives and agenda for the achievement of supervisory mandates
and requirements in ESG risk management. The European Central Bank, for its part, has established
its Climate Centre whose work focuses on three objectives: (i) managing climate risks, (ii) supporting
the green transition, and (iii) promoting broader actions, such as engagement and knowledge
generation.
The Corporate Sustainability Reporting Directive (CSRD) is another important element. This
regulation will gradually impose on companies the obligation to report using a dual
materiality perspective, in line with the European Sustainability Reporting
Standards (ESRS). The European Financial
Reporting Advisory Group (EFRAG) was appointed
as technical advisor, which prepared the first draft of standards, which,
subsequently, on July 2023, was approved with some modifications by
the European Commission through the delegated act to adopt the first set of twelve European
Sustainability Reporting Standards, which now form part of the European legal framework through the
publication in the OJEU of the Delegated Regulation (EU) 2023/2772, of 22 December. At the
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
35
national level, the preliminary draft law transposing the CSRD into Spanish law continues to
be processed.
These twelve standards consist of two general and ten thematic standards for all sectors, providing
details on environmental, social and governance aspects. Going forward, EFRAG will provide
guidance on value chain and dual materiality. In addition, it will seek to develop specific reporting
standards for SMEs and other sectors, in order to foster transparency and accountability in corporate
sustainability reporting within the European Union.
All these frameworks, initiatives, agreements and plans are taken into consideration by ICO Group
when designing its strategic lines and when deploying its initiatives and products, as well as in the
methodologies followed for the presentation of sustainability and impact indicators.
ICO GROUP AND THE SUSTAINABLE DEVELOPMENT GOALS
The 2030 Agenda and the Sustainable Development Goals must be
fundamental pillars of all public action. ICO Group fully aligns its
actions with these goals, both at the level of its financial activity, in
other initiatives with external projection and in its internal
management, as described in the different parts of this report.
Given the nature of our core business, the direct impact
of our activities stems from one main purpose: to
contribute as much as possible to SDG8 on decent
work and sustainable economic growth.
Support for projects and activities that promote SDG8 is complemented by the contribution to other
relevant SDGs through different actions, such as 7 and 13, which are particularly relevant to our
financial activity. In any case, all the SDGs to which we contribute are interconnected and mark the
roadmap that ICO Group offers towards sustainability and social responsibility.
In addition, and in order to encourage SMEs to learn about, apply and promote the Sustainable
Development Goals, in 2019 a joint initiative was launched with the Spanish Global Compact
Network and with the support of the High Commissioner for the 2030 Agenda
https://icopymeSDG.ico.es/ , which is still in force. This initiative aims to involve Spanish SMEs in
their alignment with the SDGs, as well as the business opportunities it can bring them.
With this initiative, ICO Group takes another step forward in its commitment to the sustainability of
Spanish SMEs, informing them of the changes that companies must adopt to align themselves with
the 2030 Agenda, offering a series of resources to build a strategy oriented towards the SDGs.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
36
2.2 ITS FINANCING ACTIVITY: SUPPORTING THE PRODUCTIVE FABRIC
As part of its current strategy, ICO Group carries out its activities with significant positive impacts on
the Spanish economy in general and on the productive fabric in particular. These positive effects are
multiple, varied and interrelated. The most important of these are presented below.
➢ SUPPORTING ALL COMPANIES THROUGH ITS BROAD PORTFOLIO OF PRODUCTS AND
INITIATIVES
ICO GROUP PRODUCTS AND INITIATIVES
National Promotion Bank
Financing companies, SMEs and the self-employed in Spain and internationally.
Financial Instrument for Economic Policy
Channelling of EU resources and implementation of government economic policy
measures
ICO Mediation Lines
Digital transformation
National
Through the traditional activity of the ICO Group:
ICO Companies and Entrepreneurs
ICO-RED.es Line - Digital Kit (1
st
phase RTR Plan)
ICO Guarantee SGR/SAECA
ICO-RED.es - Acelera Line (1
st
phase RTR Plan)
MAPA-ICO- SAECA Guarantee SGR / SAECA
Fond-ICO Next Tech (included in 2
nd
phase RTR / RRM Plan)
ICO Commercial Credit
ICO-RTVE Agreement
ICO Red.es Acelera
Implementing Partner CE: CEF-Connect, InvestEU Programme
ICO Red.es Digital Kit
Through allocated RTR Facilities (RTR Plan Addendum):
ICO MITMA Sustainable Mobility
ICO RRM-Entrepreneurs and Businesses
ICO MITMA Residential Building Rehabilitation
ICO-Tourism Line (Spanish tourism model, more digital)
PERTE New Economy of the Language (Spanish universities)
International
RRM Next Tech Funds
ICO International
ICO RRM Spain Audiovisual Hub
ICO Exporters
Audiovisual Sector (Spain as a hub for audiovisual production)
ICO International Channel
PERTE New economics of language (audiovisual industry)
Direct loans and guarantees
Sustainability
National
Through the traditional activity of the ICO Group:
Corporate loans
ICO-MITMA Sustainable Mobility Line/Programme (1
st
phase RTR Plan)
Institutional loans
Housing and Urban and Rural Regeneration Programme
National guarantees
ICO-MITMA Line Building Rehabilitation Guarantees (1
st
phase of the RTR
Plan)
International
ICO Water Projects Financing Programme
Corporate loans
Implementing Partner CE: CEF -AFIF, InvestEU Programme
Institutional loans
Through allocated RTR Facilities (RTR Plan Addendum):
International guarantees
ICO RRM-Green
ICO RRM-Entrepreneurs and Businesses
Complementary funding
ICO-Tourism Line (Spanish tourism model, more sustainable)
Corporate bonds
Project bonds
Social and territorial cohesion
MARF bonds
Through the traditional activity of the ICO Group:
MARF Notes
Housing and Urban and Rural Regeneration Programme
Securitisation bonds
Through allocated RTR Facilities (RTR Plan Addendum):
ICO RRM-Social rented housing
Private Equity (AXIS)
Fond-ICO Global
Fond-ICO SME
Fond-ICO Sustainability and Infrastructures
Fond-ICO Next Tech
Business growth and competitiveness
Through the traditional activity of the ICO Group:
ICO - Tourism FOCIT (Tourism Competitiveness Fund)
MAP - ICO – SAECA / SRG/SAECA GUARANTEE
Through allocated RRM Facilities (RTR Plan addendum):
ICO RRM Facilities: Green, EyE, Next Tech, Audiovisual, Housing
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
37
State Finance Agency
Management of funds on behalf of the State (off-balance sheet)
ICO COVID-19 Guarantee Lines (on behalf of the Ministry of Economy, Trade and Enterprise)
Guarantee Lines Ukraine (on behalf of the Ministry of Economy, Trade and Entrepreneurship)
ICO-MIVAU line Guarantees for the purchase of first homes by young people under 35 and families with
dependent minors (conditions approved by the Council of Ministers on February 13, 2024) (on behalf of the Ministry
of Housing and the Urban Agenda)
Internationalisation Support (on behalf of the Ministry of Industry and Tourism)
Fund for the Internationalisation of Enterprise - FIEM
Reciprocal Interest Adjustment Contract - CARI
Development Cooperation (on behalf of the Ministry of Foreign Affairs, EU and Cooperation)
Fund for the Promotion of Development - FONPRODE (FEDES, after the extinction of FONPRODE)
Cooperation Fund for Water and Sanitation - FCAS
Territorial Funds (on behalf of the Ministry of Finance and the Civil Service)
Financing Fund for Autonomous Communities - FFCCAA
Financing Fund for Local Authorities - FFEELL
ICO Group has a comprehensive range of financing and guarantees through which it contributes to
promoting viable business projects, encouraging the growth of companies, their long-term investments
and their international activity, with the aim of fostering sustainable growth, job creation and the
distribution of wealth. This broad offer is dynamic and adaptable to the needs of each moment, with
the launch of new products or the modification of existing ones to best meet the needs of the
productive fabric.
Through its extensive catalogue of products and financing initiatives, ICO Group supports companies
of all sizes, especially SMEs, the self-employed and entrepreneurs, providing full geographical and
sectoral coverage, with special attention to sectors and companies aligned with ICO’s strategic axes,
with the priorities of the Spanish Government’s Recovery, Transformation and Resilience Plan (RTR),
the Next Generation EU Programme and the European Union’s Multiannual Financial Framework
2021-2027. ICO Group has added new financing facilities to its catalogue aimed at sustainability,
energy transition, digital transformation and social and territorial cohesion.
During 2023, ICO Group managed a total balance of activity of just over 356,900 million Euros
through its product catalogue, 10.7% higher than at 2022 closing, which includes both ICO loans
and guarantees (accounted for on the ICO balance sheet) and funds and guarantees managed on
behalf of the State (accounted for off the balance sheet) and Axis’ private equity and venture capital
activity.
With regard to the new activity generated, the following table shows the detail of the drawdowns
made by companies and the self-employed during the period 2021-2023 through the various direct
financing instruments and the ICO’s Mediation Lines. Total direct financing and mediation
drawdowns in 2023 have increased by 49% compared to 2022 (+97% in 2022 compared to 2021).
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
38
NEW ICO ACTIVITY
Drawdowns. Figures in millions of Euros
2023
2022
2021
DIRECT FUNDING
5,545
3,855
1,715
Direct loans and guarantees
3,264
1,916
1,066
National
2,324
1,145
489
Corporate loans
1,366
829
456
Institutional loans
937
297
16
National guarantees
21
19
17
International
940
771
577
Corporate loans
796
633
Institutional loans
6
16
International guarantees
138
122
Complementary funding
2,281
1,939
649
Corporate bonds
257
319
109
Project bonds
0
25
0
Securitisation bonds
536
383
235
MARF bonds
9
10
27
MARF Notes
1,479
1,202
278
MEDIATION LINES
2,521
1,561
1,036
National
2,105
1,182
652
International
416
379
384
TOTAL
8,066
5,416
2,751
From 2024 onwards, the channelling, in public-private collaboration, of loans under the RTR Plan
Addendum, within the Recovery and Resilience Mechanism (RRM), whose amount allocated to
ICO Group totals 39,862 million Euros, as detailed below, will take on special relevance for the ICO
Group. The solid experience in public-private collaboration between ICO Group and the financial and
business sector will allow mobilising greater resources and generating synergies and added value.
➢ CHANNELLING, IN PUBLIC-PRIVATE COLLABORATION, OF THE FUNDS FROM THE
ADDENDUM TO THE RTR PLAN (RRM) TOWARDS THE SPANISH BUSINESS FABRIC.
✓ 39,862 million Euros managed by ICO for green and digital transition and social and
territorial cohesion
On October 17, 2023, the Council of the European Union approved the Addendum to the RTR Plan
(2
nd
Phase), which assigns ICO Group the task of channelling loans from the Recovery and
Resilience Mechanism (RRM) for an amount of 39,862 million Euros until August 31, 2026. These
facilities will be processed through the ICO Group’s mediation lines, direct financing products and
venture capital to finance investment projects that facilitate adaptation to the dual green and digital
transition, and social and territorial cohesion, under favourable conditions for Spanish companies.
During 2023, ICO Group has been working, together with other competent public bodies, on the
design of the terms and conditions and on the implementation of these facilities. The amount of
39,862 million Euros to be channelled will be distributed as follows:
Addendum to Spain’s RTR Plan (approved by the EU Council on 17/10/2023)
Amount Allocated to
ICO Group
(to be channelled in 2024-2026)
million
RRM-Green ICO Facility
Resources to increase the funding available for the green transition (sustainable transport, energy
efficiency, renewable energy and energy storage and transmission, decarbonised industry and value
chains, water treatment, circular economy, climate change adaptation, etc.).
Beneficiaries: Public, private companies and households according to products.
22,000
Through Lines of Intermediation,
Direct Financing, Bonds and
Venture Capital
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
39
ICO RRM-Enterprises and Entrepreneurs Facility
Resources for financing business growth and resilience. Includes 7,000 million Euros to boost the
business fabric, in particular SMEs; 1,000 million Euros from the ICO-Tourism Line for the
transformation and improvement of the Spanish tourism model and 150 million Euros in financing for
the PERTE of the New Language Economy).
Beneficiaries: Business community (self-employed, SMEs, mid-caps, large companies, universities and
start-ups).
8,150
Through Lines of Intermediation,
Direct Financing, Bonds and
Venture Capital
RRM Next Tech Funds
Resources to provide financial support to technology companies in their growth and scaling-up phase,
promoting innovation and development in the technology sector in Spain.)
Beneficiaries: Spanish growth companies in the Tech sector and funds that will be able to provide
financing to companies.
4,000
Through Venture Capital/AXIS
ICO RRM Spain Audiovisual Hub Facility
Loans and other financial instruments aimed at financing companies in the audiovisual sector. Includes
212 million Euros from the New Language Economy EERP (OTT platforms “Over the Top” and
companies in the cultural industries).
Beneficiaries: Self-employed, SMEs, mid-caps, large companies, public companies and start-ups).
1,712
Through Lines of Intermediation,
Direct Financing, Bonds and
Venture Capital
ICO RRM Facility for the Promotion of Social Rental Housing
Resources to finance actions to promote social rental housing and improve existing social housing
stock.
Beneficiaries: Public and private developers of social/affordable rental housing, housing recipients, the
residential rental market and the social housing community as a whole.
4,000
Through mediation and direct
financing lines,
TOTAL ALLOCATED TO ICO GROUP IN RRM
39,862
In order to make these amounts available to the real economy, public-private collaboration will be
of great importance, especially with financial institutions, to reach companies of all sizes and
sectors of activity throughout Spain.
The channelling of these almost 40,000 million Euros by the ICO Group, in public-private collaboration,
during the period 2024-2026 will promote, among others, investments by the Spanish productive fabric
in renewable energies, energy efficiency, circular economy, technology companies, digital
transformation of companies, transformation and improvement of the Spanish tourism model,
audiovisual industry ecosystem, social housing for rent and improvement of the existing social housing
stock.
The funds allocated to ICO Group in the Addendum to the RTR Plan (RRM) give it an even more
important role, after the relevant role shown during the last health crisis, constituting a great
opportunity for ICO Group to support the modernisation of the economy, increase long-term growth
potential and boost Spain’s strategic autonomy in the energy, agri-food, industrial, technological and
digital scopes.
➢ REINFORCING THE ROLE OF THE ICO IN MEETING THE FINANCING NEEDS OF
COMPANIES, ESPECIALLY SMALLER ONES, IN AN ENVIRONMENT OF TIGHTER LENDING
STANDARDS
✓ 12,111 operations financed in 2023 in Spain with ICO Mediation Lines
✓ 98% of operations to companies with less than 250 employees
✓ 63% of operations to companies with less than 10 employees
A significant part of the ICO Group’s financing is aimed at small and medium-sized enterprises and
the self-employed, given that most of the Spanish business fabric is made up of this type of company.
Specifically, SMEs accounted for 99.8% of the total number of companies in Spain and generated
63% of total business employment at December 31, 2023.
In addition, smaller companies may have greater difficulties in accessing financing, so the ICO Group’s
support in financing these companies is very important for the start-up of their activities, their
investments and their growth, providing improvements in prices, conditions and simplified procedures.
This is an added value for small companies, especially in the current environment, in which the
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
40
restrictive monetary policy has been transferred to the final interest rates borne by families and
companies, moderating new lending operations in the sector.
Access to financing and entry to financial and capital markets with complementary sources of financing
that ICO Group offers companies allows them to promote their growth and size in order to achieve
higher levels of competitiveness, investment capacity, R&D, human capital and digitalisation,
improved employment quality and productivity and, in general, greater resilience in the face of the
evolution of the economic cycle. For this reason, ICO Group will pay special attention to financing
SMEs in all sectors of activity, with the aim, among others, of promoting their larger size.
DRAWDOWNS ICO MEDIATION LINES IN SPAIN (*)
2023
2022
COMPANY SIZE
NO. OF
OPERATIONS
% OF TOTAL
LOANS
NO. OF
OPERATIONS
% OF TOTAL
LOANS
Less than 10 employees
7,595
63%
8,659
70%
10 to 49 employees
3,011
25%
2,827
23%
50 to 149 employees
958
8%
603
5%
150 to 249 employees
253
2%
150
1%
More than 250 employees
294
2%
149
1%
Total
12,111
100%
12,388
100%
* Not including International Channel
During 2023, the ICO has continued to work on the implementation of various sectoral policies and
the deployment and channelling of part of the resources of the RTR Plan (from the 1
st
phase) and
budgetary resources, as well as with bank financing from the ICO and other instruments in public-
private collaboration with the banking sector, in coordination with the relevant sectoral Ministries,
Autonomous Communities and their dependent bodies, focusing mainly on the digital transformation
of Spanish SMEs, sustainable mobility, renewable energies and energy efficiency, environmental
sustainability and territorial and social cohesion.
ICO guarantee programme for SME portfolios has also been approved for 2023 for a maximum
amount of 1,000 million Euros, the purpose of which is to facilitate access to financing for SMEs in
Spain. ICO will share 50% of the risk of the nominal amount of each operation with the originating
financial institution, excluding ordinary interest, late payment interest and other items.
The following chart shows the different initiatives that ICO Group is carrying out to channel budgetary
resources and European funds with the approval of the 1
st
phase of the Spanish Government’s
RTR Plan: ICO Red.es-Acelera, ICO Red.es-Kit Digital, ICO MITMA Sustainable Mobilidad, ICO
Residential Building Rehabilitation and ICO Tourism FOCIT. In total, ICO Group will channel more
than 6,000 million Euros in aid and guarantees, in public-private collaboration, which will mobilise
additional financing.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
41
The catalogue of ICO Mediation Lines is constantly evolving and adapting to the needs of companies
and the self-employed, with traditional lines such as Companies and Entrepreneurs, and other newly
launched lines from the Addendum to the RTR Plan (ICO RRM Lines, of the 2
nd
Phase of the Plan),
which will be of great importance in the coming years, both in terms of the volume of the amounts to
be channelled towards the real economy and their objective of modernising the Spanish economy,
making it greener, more digital and more socially and territorially cohesive.
During 2023, ICO Group has been working, together with other public bodies, on the implementation
of the ICO RRM Mediation Lines, which during 2024-2026 will be made available to the Spanish
productive fabric, in public-private collaboration, with special attention to the smallest
companies and the self-employed. The following table shows the new ICO RRM mediation lines for
a total amount of 20,976 million Euros, from the resources allocated to ICO in the Addendum to
the RTR Plan (2
nd
Phase of the Plan):
Period 2024-2026
Green ICO RRM Line (financial support for green transition)
12,505
ICO RRM Companies and Entrepreneurs Line (General tranche up to 4,529 million Euros to boost the
business fabric, particularly SMEs; Tourism tranche up to 1,000 million Euros for the transformation and
improvement of the Spanish tourism model and PERTE New Language Economy tranche up to 150 million
Euros)
5,679
ICO RRM Audiovisual Hub Line (General tranche up to 792 million Euros to finance the audiovisual sector;
PERTE New Language Economy tranche up to 212 million Euros included in the General tranche)
792
ICO RRM Social Housing Line (finance actions to promote social rental housing and improve the existing
social housing stock).
2,000
TOTAL RRM FACILITIES IN ICO-RRM MEDIATION LINES
20,976
Source: ICO’s Management Budget approved on February 2024.
ICO-Red Acelera SMEs
(300 million Euros in aids)
Accelerate the digitalisation process of
SMEs and establish measures to
support the creation of technological
solutions for their digitalisation.
ICO-Red.es Kit Digital
(3,000 million Euros in aids)
Accelerate the digital transformation
process of SMEs and the self-employed
ICO-MITMA Sustainable
mobility (1,460 million Euros in
aids)
Implementation of low-emission zones
and digital and sustainable
transformation of transport. Financing
for companies and municipalities
ICO-MITMA House
renovation
(1,100 million Euros in sureties)
Encourage refurbishment works in
residential buildings that contribute to
improving energy efficiency
ICO-Tourism FOCIT (220 million
Euros in aids)
Digitalisation, innovation and
modernisation of tourism enterprises
for energy efficiency and circular
economy projects
Phase 1 Recovery, Transformation and Resilience Plan Initiatives
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
42
➢ CONSOLIDATING AND EXPANDING MAJOR PROJECTS AND STRATEGIC PROJECTS FOR
ECONOMIC TRANSFORMATION AND RECOVERY
✓ 5,546 million Euros of drawdowns in 2023 in direct activity, largely covering major
projects
✓ Strong support for direct financing of operations with a sustainable component
ICO, as a national promotional bank, offers direct financing and complementary financing instruments
on its own account to Spanish companies for the development of large investment projects and large
long-term strategic projects, with high added value and with a tractor and catalytic effect on SMEs,
both in Spain and abroad. To this end, ICO respects the principle of complementarity with private
initiative, providing support to sustain and promote economic activities that contribute to growth and
improve the distribution of national wealth, with special attention to projects related to water, waste,
energy efficiency, health, renewable energy, urban and rural rehabilitation, sustainable mobility and
social housing.
Internationally, ICO has become a benchmark in project finance associated with large infrastructures,
and its relationship with financial shareholders is a key factor in the growth of its activity. In its support
for the internationalisation of Spanish companies, ICO facilitates access to the guarantees required in
international contracting operations, which include international public and private tenders and direct
awards in projects abroad, among which the most common are: tender guarantee, performance
guarantee, advance payment guarantee, defects or maintenance guarantee, equity guarantee and
completion guarantee.
Likewise, ICO Group finances, preferably in public-private collaboration, those large projects and
strategic projects that contribute to achieving the Spanish government’s objective of focusing on
strengthening strategic autonomy and security in five dimensions: energy, agri-food, industrial,
technological and digital, which coincide with the orientation of the EU institutions and are in line with
the strategic axes and action plans of the ICO Group’s 2022-2027 Strategy. The European funds of
almost 40,000 million Euros, allocated to ICO Group through the RTR Plan Addendum Facilities, are
a great opportunity to achieve this objective.
Within the framework of the Addendum to the RTR Plan, ICO Group has been assigned the Strategic
Project for Economic Recovery and Transformation (PERTE) New Language Economy, which will
make funds of 362 million Euros available to the real economy from 2024, although it will mobilise
additional public and private investment. The aim of this PERTE is to promote, among others, artificial
intelligence, translation, learning, cultural dissemination, audiovisual production, research and
science, in the process of the digital transformation of the Spanish economy worldwide.
The ICO’s new own-account financing and guarantee issuance activity for companies, entrepreneurs
and regional governments amounted to 8,066 million Euros (5,416 million Euros in 2022), of which
5,545 million Euros are direct activity drawdowns (3,855 million Euros in 2022), including direct loans,
guarantees, corporate bonds, project bonds, MARF bonds and promissory notes, securitisation
bonds, both nationally and internationally, largely for large investment projects and strategic projects.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
43
NEW DIRECT ACTIVITY
Disposals 2023
Millions of Euros
Disposals 2022
Millions of Euros
Direct loans and guarantees
3,264
1,916
National
2,324
1,145
Corporate loans
1,366
829
Institutional loans
937
297
National guarantees
21
19
International
940
771
Corporate loans
796
633
Institutional loans
6
16
International guarantees
138
122
Complementary funding
2,281
1,939
Corporate bonds
257
319
Project bonds
0
25
Securitisation bonds
536
383
MARF bonds
9
10
MARF Notes
1,479
1,202
TOTAL
5,545
3,855
➢ PRIORITISING MEDIUM- AND LONG-TERM FINANCING FOR THE SPANISH PRODUCTIVE
FABRIC
✓ 84% of new formalisations in 2023 are medium to long term
The promotion of longer-term financing allows, among other things, to foster a more sustainable
growth model, as well as to promote the development of large long-term investment projects that
support the transformation of key productive sectors for the Spanish economy, such as energy, agri-
food, industrial, technological and digital, giving impetus to Spain’s strategic autonomy.
The ICO Group’s financial instruments have a long-term vocation, which gives added value to
companies of all sectors and sizes by providing them with sufficient financial leeway to carry out their
projects, facilitating their growth and competitiveness and boosting their national and international
activity.
ICO Group facilitates access to medium and long-term financing operations, supporting smaller
companies that may encounter greater financing difficulties, by transferring competitive conditions for
the mobilisation of greater resources.
The new direct financing (including own guarantees) and ICO Mediation formalised during 2023, at
terms of 4 or more years, represents a high percentage of the total new lending activity formalised in
the medium and long term, having reached 84% in 2023 and standing at over 80% in the last 6 years.
This figure shows the strong contribution of the ICO in boosting long-term investment by Spanish
companies that may find it more difficult to finance themselves at longer maturities.
88%
81%
86%
93%
85%
84%
80%
85%
90%
95%
100%
2018 2019 2020 2021 2022 2023
New lending activity entered into for terms of 4 years or more (including
guarantees) over total new lending activity entered into for LT terms
(including guarantees)
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
44
It is worth noting that, overall, the drawdowns of the ICO Mediation Lines are particularly medium and
long-term (97% of the total in 2023 and 94% in 2022), which defines the ICO’s commitment to
contribute to the financing of companies of all sizes with a long-term perspective.
➢ HIGH CAPILLARITY THAT CONTRIBUTES TO ECONOMIC DEVELOPMENT AND COHESION
BETWEEN TERRITORIES
✓ +2,300 municipalities in Spain financed with ICO Mediation Lines
✓ 49% Mediation + Direct in Spain to Autonomous Regions with <GDP per capita
✓ 33% Mediation + Direct in Spain to Autonomous Regions with >unemployment rate
Taking advantage of the benefits and opportunities offered by collaboration and cooperation with other
credit institutions is an important tool for ICO Group to maximise the scope of its activities. A significant
part of the ICO Group’s activity is instrumented through public-private collaboration with the banking
sector, which provides the capillarity of the financial sector for the distribution of some ICO products,
both in terms of their reach to all types of companies, especially SMEs and the self-employed, in all
sectors and in the services they provide throughout the country, favouring territorial cohesion.
The ICO Lines have become a well-established product in the market due to the advantages of the
great capillarity that characterises these lending operations, which are mainly aimed at small-scale
operations granted to micro-SMEs and the self-employed.
Within the framework of the priorities of the RTR Plan, ICO Group cooperates by channelling financial
resources associated with economic policy measures together with Ministries, Autonomous Regions
and Autonomous Communities and their dependent bodies, such as the ICO-RED.es-Kit Digital Line,
the ICO-RED.es-Acelera, Fond-ICO Next Tech, ICO-MITMA Sustainable Mobility Line/Programme,
ICO-MITMA Residential Building Rehabilitation Guarantees, ICO - FOCIT Line (Tourism
Competitiveness Fund), MAPA - ICO - SAECA / SRG/SAECA GUARANTEE Line and various EU
programmes (CEF - Alternative Fuels Infrastructure Facility, CEF - CONNECT, InvestEU). With this,
ICO Group focuses mainly on the digitalisation of SMEs, sustainable mobility, renewable energies and
energy efficiency, and environmental sustainability, as well as contributing to the fight against the
depopulation of rural areas, supporting projects that guarantee, among others, the economic
diversification of the most disadvantaged areas, the promotion of innovation, full digital connectivity,
and the adequate provision of basic services, as well as the reduction of other gaps to promote social
and territorial cohesion.
ICO Group’s financing through the ICO Mediation Lines and direct financing in Spain has reached all
Spanish regions during 2023. From the point of view of the contribution to economic development and
cohesion between territories, it should be noted that 1,266 million Euros of the 2023 ICO Mediation
Lines were channelled to companies located in Autonomous Regions with GDP per capita below the
national average in 2022, representing 56% of the total drawn down (728 million Euros and 57%,
respectively, with 2022 Mediation drawdowns). For regions with unemployment above the national
average in 2023, the 2023 Mediation drawdowns were 794 million Euros, representing 35% of the
total distributed in Spain (472 million Euros and 37%, respectively, with 2022 Mediation).
ICO Mediation Lines*. Amounts drawn down
2023
2022
Amount
millions of €
%/Total
Amount
millions of €
%/Total
To regions with below-average GDP per capita
1,266
56%
728
57%
To regions with above-average unemployment rates
794
35%
472
37%
* Not including International Channel
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
45
As for the regional distribution of ICO’s direct financing to Spanish companies at 2023 closing, an
amount drawn down of 1,814 million Euros, representing 45% of total financing drawn down, was
allocated to Autonomous Regions with a GDP per capita below the national average (1,354 million
Euros and 50% of the total, respectively, with data at 2022 closing) and an amount drawn down of
1,273 million Euros, representing 31% of the total, to those with an unemployment rate above the
national average (938 million Euros and 35% of the total, respectively, with data at 2022 closing).
Direct Financing*. Amounts drawn down
2023
2022
Amount
millions of €
%/Total
Amount
millions of €
%/Total
To regions with below-average GDP per capita
1,814
45%
1,354
50%
To regions with above-average unemployment rates
1,273
31%
938
35%
* Not including drawdowns of securitisation bonds or one-off loans. In the projects whose investment destination covers various autonomous communities, the
amount drawn down has been distributed according to the weight of these communities in national GDP.
In the total amount of intermediated and direct financing drawn down at 2023 closing, an amount of
3,080 million Euros, representing 49% of the total amount drawn down, has been directed to regions
with a GDP per capita below the average for Spain (2,082 million Euros and 52% of the total,
respectively, with data at 2022 closing) and an amount of 2,067 million Euros, representing 33% of
the total drawn down, to those with a higher than average unemployment rate (1,410 million Euros
and 36% of the total, respectively, with data at 2022 closing).
ICO Lines of Mediation + Direct Financing*. Amounts drawn down
2023
2022
Amount
millions of €
%/Total
Amount
millions of €
%/Total
To regions with below-average GDP per capita
3,080
49%
2,082
52%
To regions with above-average unemployment rates
2,067
33%
1,410
36%
* Not including drawdowns of securitisation bonds or one-off loans. In the projects whose investment destination covers various autonomous communities, the
amount drawn down has been distributed according to the weight of these communities in national GDP.
➢ SUPPORT FOR TERRITORIAL AND SOCIAL COHESION THROUGH SOCIAL/AFFORDABLE
HOUSING PROGRAMMES
✓ +16,000 million Euros to be mobilised to boost the supply of social housing in Spain
and to improve the energy efficiency of the existing housing stock
ICO has extensive experience in financing projects to increase the stock of social or affordable
rental housing in various Spanish autonomous communities with the aim, among others, of offering
the most vulnerable social groups better options for access to housing. Specifically, the ICO has
been granting direct financing for the promotion of social housing (VPO) for rent since 1992 as a
collaborating credit institution, in accordance with the regulations applicable under the Housing Plans
in force and in accordance with the conditions of the various collaboration agreements signed between
the ICO and the Ministry responsible for housing.
ICO also has specific programmes and initiatives to support territorial cohesion and sustainable
activity. This includes the financing that ICO grants jointly with other public and private entities
through the ICO Housing and Urban and Rural Regeneration Programme 2022-2025 to increase
the stock of social or affordable rental housing, improve energy efficiency, decarbonisation and
sustainability of housing, conserve and improve accessibility in and to housing, and promote urban
and rural regeneration and renewal. The granting of direct ICO financing is additional to the aid that,
where appropriate, is granted under the State Housing Plan 2022-2025, the Programmes in force
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
46
within the general framework of the RRT Plan or other Programmes that are approved in the field of
housing. During 2023, a total of 7 operations have been approved under this Programme for the
construction of 594 social housing units for a total amount of 64 million Euros (5 operations for a total
amount of 82.9 million Euros in 2022 for the construction and rehabilitation of more than 1,000 housing
units for affordable rentals and a Plan for the Improvement of Accessibility and Urban Mobility). The
Programme envelope is 250 million Euros/year, expandable to 500 million Euros/year.
In 2022, the agreement between MITMA and ICO was signed for the launch in 2023 of the ICO-MITMA
Residential Building Rehabilitation Line, the purpose of which is to promote rehabilitation works in
residential buildings that contribute to improving energy efficiency. The operations are 50%
guaranteed by the State (through MITMA), with the amount of the guarantee line being up to 1,100
million Euros, which will mobilise financing of up to 2,200 million Euros, which will be granted to
the beneficiaries of the NextGenerationEU funds.
The Addendum to the RTR Plan, ratified by the EU Council on October 17, 2023, has assigned to
ICO Group a line of loans for the promotion of social housing - ICO RRM Facility for the promotion
of social rental housing - amounting to 4,000 million Euros, whose objective is to increase the
stock of social or affordable rental housing, as well as to improve the existing housing stock. This line
may finance the construction of energy-efficient rental housing or energy-efficient refurbishment by
public or private developers and will be available to the real economy from 2024. The ultimate
objective is to support the increase in the supply of rental housing through financing, with special
attention to the territorial areas with the greatest tension in the residential market.
In addition, during 2023, the ICO has been collaborating with the MIVAU in the implementation of the
new line of guarantees, with a maximum amount of 2,500 million Euros, to facilitate financing for
the acquisition of first homes for young people and families with dependent minors, which will be
partially covered by the State to the tune of 20% or 25% if it has a minimum energy rating D.
During 2023, the ICO has approved a green securitisation operation for an issue amount of 490
million Euros, the underlying portfolio of which is mortgage loans for the purchase of primary
residences in different regions of Spain. The originator of the loans in the underlying portfolio
undertakes to reinvest the amount financed by ICO in financing for the acquisition or refurbishment of
homes that improve energy efficiency by at least 30% or for buildings with an A or B energy efficiency
label.
All these financing activities of ICO Group have a positive social impact and contribute to the economic
development of companies located in those Spanish geographical regions most affected by
depopulation or with greater difficulties, intensifying, among others, social and territorial cohesion
programmes such as the construction or rehabilitation of social rental housing with Autonomous
Communities and Local Corporations, and promoting initiatives, in public-private collaboration, to
finance projects that contribute to reducing the territorial divide.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
47
ICO Group products
Purpose
Endowment
millions of €
Direct and Complementary Financing
(as National Promotional Bank)
ICO Housing and Urban and Rural
Regeneration Programme (2022-2025)
The funding will go to projects in:
- Construction of social or affordable housing for rent or lease,
- Refurbishment of social or affordable housing for rent or lease,
- Improving energy efficiency, decarbonisation and sustainability of housing,
- Preservation and improvement of accessibility in and to dwellings,
- Urban and rural regeneration and renewal.
250 M€/ year,
extendable to 500
M€. Until 31/12/2025
Approved 64 M€ in
2023 (83 M€ in 2022)
ICO-RRM Facility Social housing
development [2
nd
phase RTR Plan].
Increase the stock of social or affordable rental housing, as well as improve the existing
stock of social housing.
Up to 2,000 M€
(2024-2026)
Securitisation bonds
Complementary financing operation through securitisation funds using the Use of
Funds criterion. The underlying portfolio of the securitisation bonds includes, among
others, mortgage loans for the purchase of primary residences. The objective is to use
the proceeds to finance energy efficiency improvement projects and the acquisition of
green housing in Spain.
Securitised portfolio
in 2023
= 490M€
Mediation
(as an EP Financial
Instrument)
ICO-MITMA line Residential building
refurbishment [1
st
phase RTR Plan].
The State guarantees up to 50% of the loans granted to finance refurbishment works
that contribute to the energy improvement of residential buildings, within the
framework of the RTR Plan. Future loans, which can only be granted to beneficiaries of
NextGenerationEU funds, will be up to 2,200 million Euros and will be granted by
financial institutions that adhere to the ICO guarantee line.
2,200 M€ financing
and 1,100 M€
guarantees
ICO-RRM Facility Social housing
development [2
nd
phase RTR Plan].
Increase the stock of social or affordable rental housing, as well as improve the existing
stock of social housing.
Up to 2,000 M€
(2024-2026)
Guarantee lines on behalf of the
State (as State Financial Agency)
ICO COVID-19 Lease Surety Line
(application deadline expired)
Article 9 of RDL 11/2020 of 31 March, which adopted urgent complementary measures
in the social and economic sphere to deal with COVID-19, established the approval of a
line of guarantees to cover, on behalf of the State, financing for tenants in a situation
of social and economic vulnerability as a result of the expansion of COVID-19.
Guarantees of up to
1,200 M€.
Guarantee balance of
28 M€ at 31.12.2023
Line of guarantees for the purchase of
a primary residence for young people
under 35 years of age and families with
dependent minors.
(conditions approved by the Council of
Ministers on February 13, 2024)
The term of the guarantee granted by MIVAU to the financial institution and managed
by the ICO will be a maximum of 10 years from the date the transaction is formalised.
In general, the ICO will guarantee up to 20% of the amount of the loan, unless the home
purchased has an energy rating of D or higher, in which case up to 25% of this amount
may be guaranteed. The deadline for formalising loans under this line of guarantees is
31/12/2025, which may be extended for a further two years.
Guarantees of up to
2,500 M€ (drawable
from 10,000 M€ to
12,500 M€)
➢ BROAD SECTORAL DISTRIBUTION, WITH PARTICULAR ATTENTION TO THE SECTORS
MOST AFFECTED BY THE ECONOMIC CONTEXT AT THE TIME
✓ All sectors of activity will be covered by ICO Group financing in 2023.
✓ 43% of total drawdowns are concentrated in Agriculture (affected by drought) and Capital
goods, Food industry and Transport (affected by economic context)
The funds lent in 2023 through the ICO Mediation Lines have had a broad sectoral distribution, with a
greater contribution to those sectors most affected by the consequences of the drought in Spain, such
as Agriculture (12.5% of the total amount and 26.4% of the total number of operations at 2023 closing),
or those most affected by the consequences of the current economic context of tightening financial
conditions, high uncertainty and increased geopolitical risks, with more energy-intensive activities
such as Transport (7.9% of the total amount and 11.1% of the total number of operations, at 2023
closing) or Capital goods and industrial products (11.5% of the total amount and 6.6% of the total
number of operations, at 2023 closing).
The following six sectors account for 57% of the total amount drawn down and 61% of total operations
at 2023 closing:
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
48
ICO MEDIATION LINES 2023 (drawdowns) BY
SECTOR OF ACTIVITY
Amount
(millions
of €)
% S/
AMOUNT
Nº
OPERATIONS
% S/
OPERATIONS
Agriculture. livestock and fisheries
279
12.5%
3,202
26.4%
Capital goods and industrial products
258
11.5%
799
6.6%
Food and beverage industry
245
10.9%
421
3.5%
Transport and logistics
177
7.9%
1,344
11.1%
Business. professional and administrative services.
165
7.4%
787
6.5%
Tourism. leisure and culture
162
7.2%
870
7.2%
Other sectors
955
42.6%
4,688
38.7%
TOTAL
2,243
100%
12,111
100%
* Not including International Channel
ICO MEDIATION LINES 2022 (drawdowns) BY
SECTOR OF ACTIVITY
Amount
(millions of
€))
% S/
AMOUNT
Nº OPERATIONS
% S/
OPERATIONS
Agriculture, livestock and fisheries
128
10.1%
2,325
18.8%
Capital goods and industrial products
127
10.0%
1,285
10.4%
Food and beverage industry
109
8.6%
1,285
10.4%
Transport and logistics
101
8.0%
1,021
8.2%
Business. professional and administrative
services.
90
7.1%
817
6.6%
Tourism. leisure and culture
88
6.9%
180
1.5%
Other sectors
625
49.3%
5,475
44.2%
TOTAL
1,268
100%
12,388
100%
* Not including International Channel
As for the distribution by sector through direct activity, in 2023 it also shows a wide diversity of
economic activities, with a greater weight in activities that require large investment projects, as well
as those that promote the energy transition, avoiding greenhouse gas emissions. Therefore, the ICO
Group’s direct activity at 2023 closing will focus on the following sectors of activity: Business,
professional and administrative services, which provide ancillary and support activities for the
achievement of large projects (24.1% of total direct financing drawdowns in 2023), Environment
(15.0% of the total), Construction and infrastructures (13.5% of the total) and Energy (11.8% of the
total).
DIRECT ACTIVITY 2023* (drawdowns) BY SECTOR OF ACTIVITY
Amount
(millions of Euros)
%/Total
Business, professional and administrative services
1,208
24.1%
Environment
751
15.0%
Construction and infrastructure
675
13.5%
Energy
592
11.8%
Other sectors
1,782
35.6%
TOTAL
5,009
100.0%
* Not including securitisation bonds
DIRECT ACTIVITY 2022* (drawdowns) BY SECTOR OF ACTIVITY
Amount
(millions of Euros)
%/Total
Construction and infrastructure
717
20.6%
Energy
498
14.3%
Business. professional and administrative services
448
12.9%
Environment
426
12.3%
Other sectors
1,383
39.9%
TOTAL
3,473
100.0%
* Not including securitisation bonds
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
49
➢ BOOSTING INTERNATIONALISATION IS ONE OF THE ICO GROUP’S PRIORITIES
✓ 2,523 million Euros approved in 2023 from direct activity + mediation (+24% vs. 2022)
✓ 24% for outward investment on total new activity formalised in 2023
Boosting internationalisation is one of the factors that allow companies to increase their size,
supporting a greater presence abroad, improving their competitiveness and growth and, consequently,
job creation.
One of the objectives of the Spanish Government’s RTR Plan is to boost SMEs, which represent
practically all (99.9%) of the Spanish productive fabric and play a fundamental role in the EU and in
Spain. Currently, the average size of Spanish SMEs (measured by number of employees) is smaller
than the average size of other European countries, and this has a negative impact on productivity,
competitiveness, growth and employment generation in the Spanish economy.
One of the ICO Group’s priorities is to promote the internationalisation of Spanish companies of all
sizes, sectors and geographical coverage to finance their activities in Spain and in international
markets, paying special attention to SMEs, the self-employed and entrepreneurs, facilitating credit
and adapting to the needs of these companies to make investments abroad, helping to strengthen the
foreign sector and consolidating its role as an engine for the growth, recovery and transformation of
the Spanish economy. In fact, ICO Group is part of and actively contributes to the Strategy for the
Internationalisation of the Spanish Economy 2017-2027, directed and coordinated by the Secretary of
State for Trade.
The ICO Group’s entire catalogue of products is aimed, among other things, at supporting the growth
and expansion of companies both nationally and internationally, although it has more specific
financial instruments to promote the international activity of Spanish companies, expanding and
diversifying markets, currencies and financial products with traction effects, and adapting financing to
the needs of the Spanish productive fabric according to the environment in which companies operate.
ICO Group Product
Purpose
As NATIONAL PROMOTION BANK
ICO Mediation Lines:
ICO International Line
ICO Exporters Line
ICO International Channel Line
ICO International line, aimed at financing business activities and/or investment and general needs outside
the national territory of the self-employed, companies and Spanish public and private entities, both those
domiciled in Spain and those domiciled abroad with Spanish interest. Repayment terms up to 20 years
ICO Exporters Line, which provides short-term financing to the self-employed and companies for advances
on invoices from the company’s commercial activity abroad, as well as the company’s liquidity needs to cover
the costs of production and preparation of the goods or services to be sold abroad
ICO International Channel Line, which promotes the activity and financing of projects of companies with
Spanish interest with international presence in third markets, through intermediation with institutions. This
programme transfers the operating scheme of the ICO Lines to multilateral, public promotional or private banks
located abroad. In this way, the application procedures are made easier for companies and the entity’s
knowledge of the local market is incorporated as an added value. It also allows Spanish companies operating in
third markets to finance their projects in local currency in the countries where the investment projects or
commercial activity is being carried out
International direct financing
This is an important part of ICO’s activity, which promotes the development of companies’ corporate activity
and their investment projects abroad through various forms of direct financing. The financing is aimed mainly at
mid-cap and large companies, to finance long-term operations in which ICO participates in a complementary
manner together with other national or international private or public entities, under formulas such as corporate
credits and loans, syndicated loans, project finance, corporate bonds and financial guarantees. At the
international level, ICO has become a benchmark in project finance associated with large infrastructure projects,
and its relationship with financial shareholders is a key factor in the growth of its activity.
International Guarantees Programme
Relevance of ICO’s role in international tenders, endorsements and guarantees through the International
Guarantees Programme, through which ICO grants a bank guarantee to a company so that it can participate in
international tender processes or formalise contracts awarded abroad in which the provision of guarantees is
required.
Venture Capital / AXIS
AXIS’ activity is focused on promoting the growth, development and internationalisation of Spanish companies
through capital and quasi-equity instruments through a public-private collaboration scheme. Currently, Axis has
been approved by the ICO to manage 12,150 million Euros, of which 9,150 million Euros have already been
allocated to its four funds.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
50
As a FINANCIAL INSTRUMENT OF ECONOMIC
POLICY
Addendum to the RTR Plan (RRM):
Component 13:
ICO RRM Green
ICO RRM EYE
RRM Next Tech Fund
Component 25:
ICO RRM Spain Audiovisual Hub
The objectives of Component 13 of the Addendum to the RTR Plan are to introduce reforms and investments
aimed at facilitating, inter alia, business creation, growth and restructuring, and increasing productivity through
digitalisation, innovation and internationalisation. Within Component 13, the following Facilities have been
allocated to the ICO Group: Green ICO RRM, ICO RRM EyE and RRM Next Tech Fund
The objectives of Component 25 of the RTR Plan Addendum are to carry out investments and reforms to
strengthen the audiovisual sector, improve the investment environment, consolidate Spain as an international
platform for audiovisual investment and make Spain a benchmark exporter of audiovisual products, video games
and digital creation. This component also includes actions to promote the internationalisation of companies in
the audiovisual sector and to improve innovation in the sector. Within Component 25, ICO Group has been
assigned the ICO RRM Spain Audiovisual Hub Facility
As STATE FINANCIAL AGENCY
Management of funds for the
Internationalisation of companies (on
behalf of the State): FIEM
CARI
Fund for the Business Internationalisation (FIEM): The purpose of the fund is to promote the export
operations of Spanish companies and Spanish direct investment abroad, by financing operations and projects of
special interest for the internationalisation strategy of the Spanish economy. It will also be possible to finance
the technical assistance that these operations and projects require in both developed and developing countries.
In general, financing will be mainly in the form of loans, credits and credit lines, although technical assistance
and consultancy services may be financed on a non-reimbursable basis, as well as projects and operations when
the special circumstances so require.
Reciprocal Interest Rate Adjustment Contract (CARI): A financial instrument that is similar to interest rate
insurance, the aim of which is to promote Spanish exports by providing incentives for financial institutions to
grant loans at fixed interest rates
In terms of ICO’s direct activity, new approvals of direct international financing (with international
guarantees) amounted to 1,395 million Euros at 2023 closing (1,261 million Euros in 2022, +11%),
the purpose of which is to promote projects abroad.
With regard to ICO’s mediation activity through financial institutions, an amount of 1,129 million Euros
was approved in 2023 (778 million Euros in 2022, +45%), earmarked for investments outside the
national territory. Guarantees issued during 2023, have been aimed at Spanish companies developing
projects in offshore wind farms, renewable energy in its different forms, roads, industrial plants and
sustainable transport, all activities that are a cross-cutting pillar of the ICO Group. Overall, ICO’s
international activity approvals (direct with guarantees and mediation) amounted to 2,523 million
Euros in 2023, representing an increase of 24% compared to 2022; in terms of formalisations, 1,964
million Euros (+18% compared to 2022) and in terms of drawdowns, 1,357 million Euros (+18%
compared to 2022). The weight of operations formalised for investment outside Spain (considering
both direct activity and activity carried out through the ICO Mediation Lines) as a percentage of total
ICO activity has remained above 24% over the last 5 years.
Approved
2023
Millions of €
Approved
2022
Millions of €
Direct activity (with guarantees)
1,395
1,261
ICO Mediation Lines
1,129
778
Internationalisation
2,523
2,039
35%
34%
28%
29%
24%
20%
22%
24%
26%
28%
30%
32%
34%
36%
2.019 2020 2021 2022 2023
International activity (with guarantees): Formalisations
International activity / total activity
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
51
During 2023, ICO consolidated its support in different long-term currencies with the entry of new
financing operations in Australia (wind farm) and Brazil (motorway), which have enabled ICO to
finance (apart from issuing guarantees) projects in 8 different currencies in the medium and long term
(GBP, AUD, EUR, USD, CAN, UF, COP, MXN).
During 2023, 8 financing agreements have been approved in the International Channel Line
(compared to the approval of 6 agreements in 2022), for an amount of 991 million Euros, highlighting
the start of collaboration with new shareholders that allow the opening of two new markets such as
the Dominican Republic and Chile. In terms of formalisation, a total of 7 Financing Agreements have
been reached (compared to 5 Agreements signed in 2022) for an amount of 830 million Euros at 2023
closing.
Since the launch of the ICO International Channel Line in 2015, a volume of 4,281 million Euros has
been approved until the end of 2023 through 39 operations corresponding to 20 different
counterparties. The cumulative amount formalised under the programme is 3,909 million Euros and
the volume drawn down is 2,058 million Euros.
In addition, the ICO manages the FIEM and CARI funds on behalf of the State, whose objective is to
support internationalisation. At 2023 closing, the total balance of the activity managed by the ICO in
these two funds was 5,881 million Euros (6,507 million Euros at 2022 closing).
➢ THE ICO, AS AN IMPLEMENTING PARTNER OF THE EUROPEAN COMMISSION, MANAGES
EU FUNDS FOR SPANISH COMPANIES AND PROJECTS WITH SPANISH INTEREST
✓ +1,000 million Euros drawable in initiatives to channel European resources from the NGEU
and MFF 2021-2027 in public-private collaboration
In 2020, ICO was accredited as an “Implementing Partner” to manage programmes under the EU’s
new Multiannual Financial Framework 2021-2027, such as Invest EU or Connecting Europe Facility-
Alternative Fuels Infrastructure Facility (CEF-AFIF), in collaboration with the European Commission,
Ministries and other regional and local bodies, to channel European resources, thus expanding its
actions to support Spanish companies.
This accreditation also increases its capacity to channel and implement EU resources from the
NextGenerationEU programme, among others, or in collaboration with the EIB, the European
Investment Fund (EIF) and other European institutions to channel funds from EU programmes to
Spanish companies’ projects. In this regard, ICO Group has extensive experience in channelling
European funds, such as the Juncker Plan in the 2016-2020 period, working with the European
Commission, the EIB and the EIF to mobilise European resources for companies and projects of
Spanish interest.
During 2023, the ICO continued to implement and promote blending programmes that combine bank
financing with the granting of aid, subsidies or guarantees from European bodies through direct
financing, with a multiplier effect in the mobilisation of financial resources towards the real economy.
The ICO, as Implementing Partner of the EC, published on June 5, 2023 the terms and conditions of
the call called “ICO InvestEU Green Funds” to channel 150 million Euros, backed by a guarantee
package of 75 million Euros, under the InvestEU Programme, into up to three venture capital/private
equity funds investing in sustainable infrastructure and its industrial ecosystem in the EU and
preferably in Spain. The resources channelled by the ICO with the InvestEU guarantees will contribute
to mobilise, with the participation of private investors, a minimum of 300 million Euros towards projects
to be developed in the energy, sustainable transport, environment and resources, critical infrastructure
and social infrastructure sectors, in accordance with the parameters set out in the InvestEU
programme. Proposals for participation in these funds were submitted to the InvestEU Investment
Committee on December 2023.
Until November 2023, the ICO had an InvestEU Guarantee Agreement for up to 112.25 million Euros
to guarantee its investment in four funds for up to 224.5 million Euros (124.5 million Euros InvestEU
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
52
Green Funds and 100 million Euros Marguerite III Infrastructure Fund - approved and established in
2022). On December 2023, the ICO’s decision-making bodies approved the four-year renewal of the
InvestEU Guarantee Programme, extending its validity until December 31, 2027. They also approved
to increase the maximum amount of ICO’s participation in the guarantee to a maximum guarantee
amount of up to 500 million Euros and to include the new Strategic Technology Europe Platform
(STEP) window. Therefore, 275 million Euros of guarantee is added to the 225 million Euros already
approved, of which 112.25 million Euros have been consumed in 2023. The amount available for the
various calls for the period 2024-2027 will be 387.75 million Euros.
EU PROGRAMMES
CEF- Alternative
Fuels Infrastructure
Facility (AFIF)
AFIF combines ICO financing in the form of capital or debt up to
100% of the project with a minimum of 10 million Euros and a
subsidy granted by the EC up to 30% of the investment to finance
projects related to the change to less polluting alternative fuels and
without dependence on the outside of the EU, within the framework
of sustainable and multimodal mobility for the modernisation of the
European transport network (Ten-T). Projects may be financed,
among others, for alternative charging infrastructures (hydrogen,
liquefied natural gas and electricity) and the production, storage
and transport of green hydrogen, within the framework of the Ten-
T network.
Approvals 2023:
72 M€ of new funding for smart electrification of
operations centres; hydrogen as alternative fuel for
transport; electric superchargers; fast charging
points on road network
The blending programme for 2024-27, which will
give continuity to the current AFIF, is under
negotiation and Spain is participating in the
negotiations through MITMA.
CEF – CONNECT
It combines ICO funding up to 100% of the project with a minimum
of 5 million Euros and a grant awarded by the EC for projects
related to digitisation in the framework of the EU digital
interconnection. The total amount of the CEF-Connect Programme
2021-2027 amounts to 2,000 million Euros and will target, among
others, widespread 5G access, fibre interconnections, high-speed
networks and integrated data centres.
Approvals 2023:
Total amount of the CEF-Connect Programme
2021-2027: 2,065 million Euros. ICO amount: 100
million Euros
InvestEU
Programme
EC guarantee for equity or quasi-equity products, intermediation
financing or direct financing to facilitate access to financing for
Spanish companies through 5 windows of action: sustainable
infrastructure, research, innovation and digitisation, SMEs, social
investment and training, and Strategic Technology Europe
Platform (STEP). The maximum EC guarantee will be 50% of the
investment in direct operations, up to 75% in equity and 80% in
mediation.
Approvals 2023:
125 M€ of Invest EU Green Funds (with 50%
InvestEU guarantee).
Renewal for 4 years of the InvestEU Guarantee
Programme, extending its validity until 31/12/2027.
Increase by 275 M€ the maximum amount of ICO
participation in the guarantee (from 225 M€ to 500
M€).
Of the 500 M€, 112.25 M€ has been consumed
until 2023. 388 M€ available in 2024-2027
The new Strategic Technology Europe Platform
(STEP) window is included.
➢ STRONG SUPPORT FOR THE DIGITAL TRANSFORMATION OF SPANISH COMPANIES,
ESPECIALLY FOR SMALLER ONES
✓ +13,000 million Euros drawable, in public-private collaboration, towards Spanish companies
investing in digital transformation
❖ Through the traditional activity of the ICO Group
One of the strategic axes of ICO Group is to provide financing to the Spanish productive fabric to
make the investments they need in their digital transformation process, which will allow them to
increase their competitiveness, productivity, resilience and territorial and social cohesion, in line with
the EU Digital Strategy and the Digital Spain Agenda 2026.
Within the ICO Group’s extensive catalogue of products and initiatives, the following, more specific to
digital transformation, should be highlighted:
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
53
Product of ICO Group (traditional
activity of the ICO Group)
Purpose
Endowment
Millions of Euros
ICO-Red.es Digital Kit Line
Non-repayable aid to small enterprises, micro-
enterprises and self-employed persons
Collaboration between Red.es and the ICO to promote access to ICO financing
through financial institutions for beneficiary companies and digitalisation agents,
for those projects that have received aid from Red.es within the Digital Kit
Programme.
3,000 M€
(aids)
ICO-Red.es Acelera Line
ICO will finance up to 100% of the amount of the project
approved by Red.es minus the amount of the grant
advance.
Loans through an ICO Mediation Line in collaboration with financial institutions to
finance the digitalisation process of SMEs and establish measures to support the
creation of technological solutions for their digitalisation.
Up to 300 M€
(aids)
Next Tech Fund (included in RRM)
Holdings and underwriting commitments in companies
and funds specialising in digital and artificial intelligence
sectors
Venture capital fund to promote the development of innovative, high-impact
digital projects and investment in scale-ups in collaboration with SEDIA, with the
potential to mobilise up to 8,000 million Euros in public-private collaboration with
the Spanish venture capital sector.
4,000 M€
(VC funds: drawable x2
with private sector)
ICO-RTVE Agreement
ICO direct financing programme for the production of new audiovisual works, such
as feature and short films, films for television, documentaries and animated series
and other European works of a cultural nature.
Up to 100 M€
(direct funding)
In addition, ICO’s accreditation in 2020 as an “Implementing Partner” of the European Commission
has since enabled it to finance projects through various instruments, including the following, as they
are related to digital transformation:
▪ CEF- CONNECT: It combines ICO financing up to 100% of the project with a minimum of 5
million Euros and a grant awarded by the EC for projects related to digitisation in the framework
of the EU digital interconnection. The total amount of the CEF-Connect Programme 2021-2027
amounts to 2,000 million Euros and the amount allocated to ICO is 100 million Euros, which
will be used, among others, for widespread 5G access, fibre interconnections, high-speed
networks and integrated data centres.
▪ InvestEU Programme: EC guarantee for equity or quasi-equity products, intermediation
financing or direct financing to facilitate access to financing for Spanish companies through 5
action windows, one of which is Research, Innovation and Digitalisation (DIW) and a new
window to incorporate the European strategic investment initiative Strategic Technologies for
Europe Platform (STEP). The maximum EC guarantee will be 50% of the investment in direct
operations, up to 75% in equity and 80% in mediation.
❖ Through the allocation to ICO Group of Facilities of the Addendum to the RTR Plan:
RRM
According to the European Commission’s Commission Staff Working Document of October 2, 2023,
the amended RTR Plan (with Addendum) will contribute 25.8% to the digital transformation of
society and the economy, amounting to just over 40,000 million Euros.
The Addendum to the RTR Plan (RRM), approved on June 6, 2023 by the Council of Ministers and,
subsequently, on October 2 by the European Commission and on October 17 by the EU Council,
includes the channelling through the ICO Group, in public-private collaboration, of 39,862
million Euros up to 2026 through its mediation lines, direct financing programmes and venture
capital (Axis). Of this amount, it is estimated that at least 5,862 million Euros will be earmarked for
financing projects aimed at the companies’ digital transformation, as explained below. All this,
without prejudice to the financing that may be granted in any of the facilities (green, companies and
entrepreneurs...) that may be used for digital transformation without the product being specifically for
this purpose.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
54
During 2023, ICO Group has been working, together with other public bodies, on the implementation
of the Facilities assigned in the Addendum to the RTR Plan. The RRM Facilities that more
specifically support the digital transformation of companies are:
▪ ICO Facility ICO RRM-Enterprises and Entrepreneurs (C13.I6): This facility includes the ICO-
Tourism Line, endowed with 1,000 million Euros, which will finance under the preferential
conditions of the RRM under the four European objectives (ecological transition, digital
transformation, smart growth, and social and territorial cohesion). It therefore includes, among
others, those investment projects of tourism companies that promote the digital
transformation of the Spanish tourism model, modernising and digitising the tourism
business fabric mainly through the digitisation of processes, investment in technological
equipment (hardware or software) and the retraining of human resources. In addition, this
facility also incorporates funding from the PERTE New Economy of the Language (endowed
with 150 million Euros), to grant funding to Spanish universities with the aim of deepening
digitisation and artificial intelligence and carrying out transformative projects that allow them to
achieve technological sovereignty.
▪ RRM Next Tech Funds (C13.I7): FOND-ICO Next Tech invests directly in Spanish growing
companies in the technology sector through equity and quasi-equity investments (mezzanine,
convertible loans, convertible notes, etc.), as well as funds (venture capital funds or corporate
funds). This Fund is endowed with 4,000 million Euros under the RRMF and, in addition, will
be able to mobilise a further 4,000 million Euros through private investors in public-private
collaboration with the Spanish venture capital industry. The objective of the Fund is to
strengthen financing to facilitate the expansion of companies with a high innovative and
technological content, and the promotion of digital entrepreneurship in digital enabling
technologies to boost the digital transformation of the Spanish productive fabric. It will also
strengthen the creation of high added value by the invested companies, through digitisation
and the use of disruptive technologies, which will boost research, development and innovation
in the Spanish economy. As part of the ICO Group’s strong commitment to supporting digital
transformation, it is worth highlighting its participation in the European Tech Champions
Initiative (ETCI), a new fund of funds to finance innovative start-ups in Europe. During 2023,
ICO Group has formalised an amount of 400 million Euros in this initiative through FondICO
Next Tech and plans to raise up to 1,000 million Euros in a second phase.
▪ ICO RRM Spain Audiovisual Hub (C25.I3): This facility is endowed with 1,712 million Euros,
of which 1,500 million Euros will go to the audiovisual sector and 212 million Euros to actions
under the PERTE New Economy of the Language. It will be channelled through mediation
lines, direct financing programmes and capital injections (direct and/or through equity funds).
The objective of this facility is to make Spain a hub for audiovisual production, to support the
audiovisual and cultural industries as strategic sectors and to support the growth of SMEs
operating in the audiovisual sector. This facility incorporates funding from the PERTE of the
New Language Economy, which aims to boost the audiovisual and cultural industry in Spanish
and in the co-official languages.
Facility RRM-Digital Transformation
RRM Facility
Amount
millions of Euros
Justification RRM Facility-Digital Transformation
ICO RRM-Enterprisese and Entrepreneurs
ICO-Tourism Line
PERTE of the New Economics of Language
Up to 1,000
150
To contribute to the transformation and improvement of
the Spanish tourism model, making it more digital
To further the digitalisation and artificial intelligence of
Spanish universities
RRM Next Tech Funds
4,000
Facilitate the expansion of companies with a high
innovative and technological content
Strengthen the creation of high added value by invested
companies / Boost R&D&i
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
55
ICO RRM Spain Audiovisual Hub
Audiovisual sector
PERTE of the New Economics of Language
1,500
212
To turn Spain into a hub for audiovisual production
To promote the audiovisual and cultural industry in
Spanish and in the co-official languages.
➢ CONSOLIDATING NEW FUNDING THROUGH COMPLEMENTARY FUNDING PROGRAMMES
✓ Around 2,300 million Euros in additional funding to be made available in 2023
ICO has become a major investor in the MARF market, catalysing other investors in support of
companies seeking alternative financing in this market through the issuance of fixed income securities
and, in particular, through commercial paper programmes, which cover the short-term financing needs
of the issuing companies.
In addition, longer-term bond issues in this market help these companies to raise funds to finance
their general corporate needs, especially new investment projects and the adaptation of their financial
structure.
For this reason, ICO continues to promote complementary sources of financing, whose presence in
the MARF market, both in promissory notes and bonds, as well as in securitisations, is very important
as it allows diversification of financial resources with other alternative sources to banking with the aim
of supporting the growth of companies in all sectors and of all sizes, with special attention to small
and medium-sized enterprises.
In addition, the recent approval of the Addendum to the RTR Plan, for the channelling of the loans
allocated under the Recovery and Resilience Mechanism (RRM), allocates ICO Group almost 40,000
million Euros, part of which will be made available to the real economy during 2024-2026 through the
purchase by the ICO of medium and long-term senior fixed income securities issued on organised
markets, such as AIAF or MARF, issued by companies to finance their investment plans. Of the five
facilities approved with RRM funds managed by ICO, the ICO-RRM Green, ICO-RRM Enterprises and
Entrepreneurs and ICO-RRM Spain Audiovisual Hub facilities include, among others, the purchase of
debt securities by ICO as a financial instrument to channel these funds.
Complementary sources of ICO funding include:
CORPORATE
BONDS
Disposals of 2,281 million Euros in 2023
Direct financing programme for companies through the acquisition of
bonds and debentures issued by Spanish companies to finance their medium
and long-term investment plans. Preference will be given to companies certified
as responsible issuers or listed on sustainability indices, favouring activities and
projects that improve environmental performance.
PROJECT
BONDS
Project bond purchase programme as a medium and long-term financing
instrument especially linked to large infrastructure financing operations.
MARF BONDS
AND NOTES
ICO’s direct financing programme for companies through the subscription
of MARF promissory notes and bonds to inject liquidity and finance the
medium and long-term investment plans of Spanish companies with issuance
programmes registered in the Alternative Income Market (MARF).
SECURITISATION
BONDS
General framework for investing in securitisation assets to encourage the
diversification of financing for SMEs and entrepreneurs in Spain. The ICO
requires as a condition for its participation an explicit commitment from the
originating institution to generate new financing for companies and the self-
employed in Spain. In this way, it ensures that the impact of ICO’s investment
will be reflected in new credit in general and credit for the productive fabric in
particular.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
56
DIRECT ACTIVITY. ADDITIONAL FUNDING
Drawdown 2023
Millions of Euros
Drawdown 2022
Millions of Euros
Corporate bonds
257
319
Project bonds
0
25
MARF bonds
9
10
MARF Notes
1,479
1,202
Securitisation bonds
536
383
TOTAL
2,281
1,939
➢ MANAGING LINES OF GUARANTEES ON BEHALF OF THE STATE
✓ ICO-Covid19 guarantee line (Liquidity + Investment): 107,187
3
million Euros of guarantees
granted in 1,192,484 operations to almost 675,000 companies and self-employed workers
since its launch, causing a positive impact on the maintenance of activity and employment.
✓ Ukraine Guarantee Facility: 4,499 million Euros of guarantees granted and mobilised
financing of 5,803 million Euros during 2023, granted to 26,840 operations of more than
22,000 companies, avoiding liquidity tensions due to price increases.
✓ Line of guarantees for the purchase of first homes by people under 35 years of age or families
with dependent minors for a maximum amount of up to 2,500 million Euros (conditions
approved by the Council of Ministers on February 13, 2024).
The ICO, as part of its function of managing public funds on behalf of the State as the State Financial
Agency, has continued to carry out the financial management of the amounts guaranteed by the ICO-
Covid19 guarantee lines and the Ukraine guarantee lines, and will soon launch the new line of
guarantees approved by the Council of Ministers on February 13, 2024 for the partial coverage on
behalf of the State of financing for the acquisition of the first home intended for habitual and permanent
residence by young people under 35 years of age and families with dependent minors.
The ICO-Covid19 line of guarantees to support liquidity and investment by companies and the self-
employed, launched in 2020 by the Spanish government to alleviate the consequences of the health
crisis by Covid-19, and the subsequent measures to make the conditions of the guaranteed loans
more flexible, have been efficiently managed by the ICO, helping to maintain activity and employment
in the Spanish economy. This line of guarantees has been a successful model of public-private
collaboration in its use and extension in the productive fabric, ranking as the most effective in the EU
in terms of GDP. The deadline for granting guarantees under this line was June 30, 2022, although
the ICO continues to carry out the financial management of the amounts guaranteed during the term
of the loans granted. According to data as of June 30, 2022 (the end date for the granting of these
guarantees), 140,737
i
million Euros have been injected in business financing, spread over 1,192,484
operations, with 107,187 million Euros guaranteed for liquidity and investment. The default ratio,
defined as the proportion of the net principal outstanding (guaranteed and non-guaranteed part) of
transactions with defaults with respect to the total principal of the loans formalised, was 2.81% with
the default data reported in the October 2023 window (latest available data).
The ICO has also continued to promote the management associated with public guarantees through
the Ukraine Guarantee Facility, a measure launched at the beginning of 2022 by the Spanish
government to strengthen economic recovery and protect the activity of Spanish self-employed
workers and companies affected by the liquidity tensions arising from the increase in energy and other
raw material prices as a result of the war in Ukraine. The Agreement of the Council of Ministers of
December 5, 2023 approved the launch of the third tranche of the Ukraine Guarantee Facility for the
self-employed and companies for up to 4,500 million Euros, thus making available all of the 10,000
million Euros previously approved (5,000 million Euros launched on March 2022 and 500 million Euros
as a specific reinforcement for the gas intensive industry on December 2022) that are already helping
to strengthen the liquidity of companies. The Agreement also extends the maximum application period
for guarantees subject to section 2.1 of the Temporary Framework from December 1, 2023 to June 1,
3
This amount corresponds to the ICO-Covid19 guarantee lines for investment and liquidity support, but does not include the amount of guarantees for
MARF promissory note issues, whose guarantee since inception is 859 million Euros, corresponding to 119 issues and financing of 1,255 million Euros.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
57
2024, and raises the maximum amounts of guarantees that can be granted under this section. In
addition, the aforementioned Agreement instructs the ICO to extend, even after the expiry of the
Temporary Framework (June 30, 2024), when the conditions set out in the Agreement are met, the
maturity of the guarantees granted to companies and the self-employed under the facility. Up to
December 31, 2023, 26,840 operations have been formalised, requested by 22,259 companies and
the self-employed. The amount of guarantees requested totals 4,499 million Euros, which has enabled
resources to be mobilised through new loans and other forms of financing amounting to 5,803 million
Euros. A total of 96% of the operations were subscribed by the self-employed and SMEs.
On June 2023, the Spanish Government approved a line of guarantees managed by ICO for the
partial coverage on behalf of the State of financing for the acquisition of the first home intended for
habitual and permanent residence by young minors and families with dependent minors for a
maximum amount of up to 2,500 million Euros. On February 13, 2024, the Council of Ministers
approved the agreement establishing the conditions for the Ministry of Housing and the Urban Agenda
(MIVAU) to sign this line of guarantees with the ICO. In general, the ICO will guarantee up to 20% of
the amount of the loan, unless the home purchased has an energy rating of D or higher, in which case
it may guarantee up to 25% of this amount. The term of the guarantee granted by MIVAU to the
financial institution and managed by the ICO will be a maximum of 10 years from the formalisation of
the operation, regardless of the repayment of the loan.
STATE GUARANTEE LINES. Closing date 2023
LINE OF GUARANTEES
REQUESTED
GUARANTEE
Millions of Euros
MOBILISED
AMOUNT
Millions of
Euros
NO. OF
OPERATIONS
NO. OF
COMPANIES
ICO- Covid19 Guarantee Lines
[Liquidity + Investment]
(from start of Line)
107,187
140,737
1,192,484
674,922
Guarantee Facility Ukraine
4,499
5,803
26,840
22,259
Line of Loans for the purchase of
first homes for young people and
families with dependent minors.
Line endowed by maximum amount of 2,500 million Euros
(conditions approved by the Council of Ministers on February
13, 2024)
➢ MANAGING FUNDS ON BEHALF OF THE STATE
✓ 210,684 million Euros managed by ICO on behalf of the State at 2023 closing (+5.8%
compared to 2022), in addition to the State guarantee lines.
✓ Support for the internationalisation of Spanish companies, Spanish development
cooperation and the financial sustainability of Autonomous Regions and local
authorities
In addition to managing the aforementioned ICO-Covid19 guarantee line, the Ukraine guarantee line
and, soon, the line of guarantees for the purchase of first homes for groups with greater access
difficulties, the ICO, as the State Financial Agency, provides financial services to manage, off-balance
sheet and on behalf of other ministries, certain funds and instruments aimed at supporting
internationalisation (through FIEM and CARI), development cooperation (through FONPRODE
and FCAS) and facilitating the sustainability of regional and local administrations (through
FFCCAA and FFEELL).
At 2023 closing, ICO had managed resources on behalf of the State (including lines of guarantees
and State funds) with a total balance of 322,370 million Euros (+5% compared to 2022 closing).
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
58
State Finance Agency
Management of funds on behalf of the State (off-balance sheet activity)
Initial
guarantee
2023
Millions of €
Initial
guarantee
2022
Millions of €
COVID-19 ICO Guarantee Lines (Liquidity + Investment)
107,187
107,187
Ukraine Guarantee Lines
4,499
649
Guarantee Lines on behalf of the State
111,686
107,836
Balance
2023
Millions of €
Balance 2022
Millions of €
Internationalisation (FIEM + CARI)
5,881
6,507
Development Cooperation (FONPRODE + FCAS)
551
413
Territorial Funds (CCAA + CCLL)
204,252
192,031
Funds on behalf of the State
210,684
198,951
Total
322,370
306,787
At 2023 closing, the most relevant amounts of the total activity managed by ICO on behalf of the State
were those corresponding to the Autonomous Community Financing Fund (197,968 million Euros,
61% of the total managed on behalf of the State) and the Covid-19 Guarantee Lines (107,187 million
Euros, 33% of the total managed on behalf of the State).
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
59
➢ PROMOTING VENTURE CAPITAL THROUGH ITS SUBSIDIARY AXIS, AS AN ALTERNATIVE
FINANCING VEHICLE
✓ Axis has been approved by the ICO to manage 12,150 million Euros, of which 9,150
million Euros have already been allocated to its four funds
ICO promotes complementary financing for companies through Axis, its 100%-owned venture capital
managing company, in public-private collaboration. AXIS’ activity is carried out through investments
in private equity and venture capital funds aimed at promoting the creation and growth of companies
throughout the entire investment life cycle, from the early stages (Business Angels, incubation,
technology transfer) to start-ups, scale-up, expansion and growth capital (equity) and debt.
Axis has currently been approved by the ICO to manage 12,150 million Euros, of which 9,150 million
Euros are already allocated to the four funds it manages at 2023 closing, registered with the CNMV
SUPPORT FOR
INTERNATIONALISATION
ICO acts on behalf of and under the
instructions of the Secretary of State for
Trade of the Ministry of Industry, Trade and
Tourism.
Within this framework, ICO manages:
Business
Internationalisation
Fund (FIEM)
It promotes the export operations of
Spanish companies, as well as Spanish
direct investment abroad, by
financing operations and projects of
special interest for the
internationalisation strategy of the
Spanish economy. It may also finance
the technical assistance that these
operations and projects require in
both developed and developing
countries.
Reciprocal Interest
Adjustment Contract
(CARI)
A financial instrument that is similar to
interest rate insurance, the aim of
which is to favour Spanish exports by
encouraging financial institutions to
grant loans at fixed interest rates.
SUPPORT FOR
DEVELOPMENT
COOPERATION
ICO acts under the instructions of the
Secretary of State for International
Cooperation of the Ministry of Foreign
Affairs, EU and Cooperation, managing:
Fund for the Promotion
of Development
(FONPRODE*)
Its purpose is the eradication of
poverty, the reduction of inequalities
and social inequities between people
and communities, gender equality, the
defence of human rights and the
promotion of human and sustainable
development in impoverished
countries.
* Law 1/2023, of 20 February, on Cooperation for
Sustainable Development and Global Solidarity, has
been published in the Official State Gazette,
creating the Spanish Fund for Sustainable
Development (FEDES F.C.P.J.), which will assume
the rights and obligations of FONPRODE once the
latter has been extinguished.
Cooperation Fund for
Water and Sanitation
(FCAS)
Its purpose is to grant aid, mainly non-
refundable and, where appropriate,
loans to finance projects in the fields of
water and sanitation, under the co-
financing regime with the national
authorities of Latin America and the
Caribbean.
FINANCIAL SUSTAINABILITY
OF REGIONAL AND LOCAL
GOVERNMENTS
ICO manages in the name and on behalf of
the Ministry of Finance:
Financing Fund for
Autonomous
Communities (FFCCAA)
Its purpose is to provide these
administrations with liquidity. Among
the functions of the ICO as financial
manager of the fund are the
formalisation of financial operations
with the Autonomous Regions and the
provision of technical instrumentation,
accounting, cash, paying agent and
monitoring services.
Local Entities Financing
Fund (FFEELL)
Its function is to provide liquidity and
guarantee the financial sustainability
of municipalities by meeting their
financial needs.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
60
and whose sole participant is the ICO (7,150 million Euros at 2022 closing), in public-private
collaboration:
Fond-ICO Next Tech, endowed with 4,000 million Euros, is a joint initiative of the ICO and Axis with
the Secretary of State for Digitalisation and Artificial Intelligence (SEDIA), included in the National
Recovery, Transformation and Resilience Plan, with the aim of promoting the development of
innovative, high-impact digital projects and investment in scale-ups.
Fond-ICO Global, endowed with 4,500 million Euros, is the first public venture capital/private equity
“fund of funds” created in Spain and aims to promote the creation of privately managed venture capital
funds that invest in Spanish companies at all stages of their development. Through the 15 calls of
Fond-ICO Global until the end of 2023, investments in Spanish companies have been approved for
an amount of 3,427 million Euros with an invested volume of 11,474 million Euros (multiplier of 3.3x).
On November 2023, the launch of the 16
th
Call of this Fund was approved, the largest of Fond-ICO
Global so far, to select 12 funds/managers in three categories: incubation and technology transfer,
venture capital and expansion in which up to 900 million Euros will be invested. The resources will
come, depending on the type of project, from one of the following facilities managed by ICO Group in
the Addendum to the RTR Plan: ICO RRM Green, ICO RRM Enterprises and Entrepreneurs and
ICO RRM Spain Audiovisual Hub.
Fond-ICO SMEs, endowed with 250 million Euros, aims to invest in funds that invest in strategic or
innovative segments of activity such as sustainability and social impact or the entrepreneurial
ecosystem, also promoting complementary financing to banking through business angels or
diversified debt (crowdlending/crowdfunding).
Fond-ICO Sustainability and Infrastructures, endowed with €400 million, is focused on
participation in sustainable infrastructure projects in the transport, energy, social and services sectors,
seeking a clear positive impact on people, the climate and the environment. The Council of Directors
of AXIS also approved the change of name from Fond-ICO Infrastructures II, F.I.C.C.C. to Fond-ICO
Sustainability and Infrastructures, F.I.C.C.C. and the adaptation of the prospectus and other legal
documentation of the fund to Regulation (EU) 2019/2088 of the European Parliament on sustainability
Investment capacity
Mobilization capacity
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
61
disclosures to achieve its classification within its article 8 (financial products promoting environmental
or social characteristics). Once filed with the CNMV, it has already been registered with the CNMV.
During 2023, the number of formalisations in all funds under management increased compared to the
previous year. Certain aspects (main investment vehicles, project selection process and investment
policy) of the Entrepreneurship and Startups Initiative were also approved in response to the Startups
Act and the Crea y Crece Act accompanying the RTR Plan.
In addition, the Facilities assigned to ICO Group within the framework of the Addendum to the RTR
Plan for channelling the loans allocated to the Recovery and Resilience Mechanism (RRM) include
the ICO Next Tech Fund, already in existence prior to the approval of the Addendum but with an
increase in the size of the fund during the year 2023. The current size of the fund is 4,000 million
Euros and its main objective is to provide financial support to technology companies in their growth
and scaling phase, promoting innovation and development in the technology sector. On February
2023, ICO Group formalised its participation in the European Tech Champions Initiative (ETCI), a
new fund of funds to finance leading innovative start-ups in Europe, for 400 million Euros through
FondICO Next Tech, which plans to reach up to 1,000 million Euros in a second phase. All these
actions demonstrate the ICO Group’s strong commitment to supporting digital transformation, in
public-private collaboration.
Likewise, of the five Facilities approved with RRM funds and managed by ICO to be made available
to the real economy during the period 2024-2026, the Facilities ICO-RRM Green, ICO-RRM
Enterprises and Entrepreneurs and ICO-RRM Spain Audiovisual Hub include, among others,
venture capital as a financial instrument to channel these funds, as shown in the following table:
Venture Capital Amount
(millions of €)
2024-2026
Green ICO RRM Facility
2,200
ICO RRM Facility for Enterprises and
Entrepreneurs
815
ICO RRM Audiovisual Hub Facility
171
FondICO Next Tech
4,000
TOTAL RRM FACILITIES IN VENTURE CAPITAL
7,186
Source: ICO’s Management Budget approved on February 2024
By the end of 2023, the ICO has already begun to mobilise the loans from the Addendum to the RTR
Plan with 900 million Euros in venture capital investment for sustainable and digital projects, in the
largest call of Fond-ICO Global. The resources will come from three of the lines managed by the ICO
in the RTR Plan Addendum (ICO-RRM Green, ICO-RRM Companies and Entrepreneurs, and ICO-
RRM Spain Audiovisual Hub) and will boost investments that foster business growth and green and
digital transformation.
During 2023, Axis has approved commitments of 1,206 million Euros across its four funds (1,790
million Euros in 2022, which mainly stems from the approval of up to 1,000 million Euros for
participation in the European Tech Champions Initiative):
DIRECT ACTIVITY: Private Equity AXIS
Fund size (**)
Millions of €
Approved
commitments
2023
Millions of €
Approved
commitments
2022
Millions of €
Fond-ICO Next Tech
4,000
244
1,290
Fond-ICO Global
4,500
900 (*)
410
Fond-ICO SME
250
30
35
Fond-ICO Sustainability and
Infrastructures
400
32
55
RRM contribution - to be distributed
3,000
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
62
Total
12,150
1,206
1,790
(*) The launch of the 16
th
Call has been approved for up to 900 million Euros / 12 funds. Pending resolution at 2023 closing.
(**) Axis has been approved by the ICO to manage 12,150 million Euros, of which 9,150 million Euros have already been allocated to its four funds.
2.3 POSITIVE MACROECONOMIC IMPACT IN THE SPANISH ECONOMY
➢ MEDIATION ACTIVITY: IMPACT ON GDP AND EMPLOYMENT
The ICO has developed an analysis to quantify the macroeconomic impact generated by its financing
activity. This analysis, based on a methodology that uses the Input-Output Tables of the National
Accounts combined with statistical and econometric techniques, shows that the presence of ICO as a
relevant actor in the Spanish financial sector has a significant impact on the economy, generating an
important contribution to certain macroeconomic variables such as GDP, exports, investment and
employment.
With regard to the impact on economic activity of the financing distributed by the ICO in 2023 through
the Mediation lines, estimates place it, in terms of GDP, at 10,569 million Euros, equivalent to 0.72%
of GDP. Similarly, this financing activity has led to 2,203 million Euros in investment, which represents
0.78% of total gross fixed capital formation (GFCF) in Spain last year. In relation to exports, the impact
generated by ICO financing, estimated at 3,056 million Euros, represented 0.54% of the total volume
of Spanish exports.
There is also a significant impact on employment. The estimated employment generated and/or
maintained as a result of ICO activity in 2023 through Mediation lines is 170,805 jobs, which
represents 0.86% of the total volume of full-time equivalent employment.
➢ DIRECT FINANCING ACTIVITY: IMPACT ON GDP AND EMPLOYMENT
Using the same methodological procedure, the ICO estimates the impact on certain macroeconomic
variables of its activity as a direct financier.
The estimated impact on economic activity generated by the ICO’s direct financing operations
formalised in 2023 is estimated, in terms of GDP, at 20,613 million Euros, equivalent to 1.41% of GDP.
ICO Mediation Lines 2023 (second-floor facilities)
Contribution to GDP: 10,569 M€ (0.72% of GDP)
Impact on Investment
2,203 M€ (0.78% of
Investment in Spain)
Impacto en
Exportaciones
3,056 M€ (0.54% of Spain's
Exports)
Impacto on Exports
6,892
(0.47% DGP)
65.2%
3,678
(0.25% PIB)
34.8%
INDIRECT (Suppliers
of financial
companies) and
INDUCED
(Consumption by
employees of
financed companies
and suppliers )
IMPACT
DIRECT IMPACT
(Companies
financed by
ICO lines)
Total
10,569 M€
(0.72% of
GDP)
ICO Mediation Lines 2023 (second-floor facilities)
Contribution to Employment: 170,805 jobs created and/or mantained
(0.86% of total employment in España)
1
(1) Full-time equivalent
116,958
(0.59% of
employment)
68.5%
53,847
(0.27% of
employment
31.5%
INDIRECT (Suppliers of
financial companies)
and INDUCED
(Consumption by
employees of financed
companies and
suppliers ) IMPACT
DIRECT IMPACT
(Companies financed
by ICO lines)
Total
170,805
jobs (0.86%
of employment
in Spain)
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
63
Similarly, these direct financing operations have led to 4,255 million Euros in investment, which
represents 1.51% of total gross fixed capital formation (GFCF) in Spain in 2023, and have generated
an impact on exports, estimated at 2,262 million Euros, which represents 0.40% of the total volume
of Spanish exports.
The quantification, in terms of employment generated and/or maintained as a result of these direct
financing operations, amounts to 319,353 jobs, which represents 1.61% of the total volume of full-time
equivalent employment.
2.4 PROMOTING SUSTAINABILITY IN OUR ACTIVITY AS FUNDERS
ICO Group contributes to long-term sustainable development, seeking to achieve balanced economic
development, social development and environmental protection. ICO Group promotes growth through
the financing of business activities that contribute to the generation of employment and economic
development, both in Spain and in third countries, aligning itself, among others, with the 17
Sustainable Development Goals of the United Nations 2030 Agenda, with the Paris Climate
Agreement (COP 21), with the United Nations Guiding Principles on Business and Human Rights and
with the EU Sustainable Finance Action Plan, all signed by Spain and implemented at European and
national level.
The ICO Group’s sustainable financing is part of the European context of promoting sustainable
finance and is aligned with the European sustainability priorities set out in the EU New Green Deal,
which have subsequently been transferred to the European Climate Law. Likewise, ICO Group
endorses the environmental objectives included in the European regulation on sustainable investment
when focusing its activity and is working to incorporate these criteria across the council in the
institution.
ICO Group has a Sustainability Policy, which is updated in response to events that make it necessary
to adapt it to reflect the current situation, and whose main lines of action are as follows:
- Acting as a signpost in the design and implementation of all ICO’s sustainability actions by
encouraging stakeholders to share the objectives and commitments in this area.
- Combating climate change and protecting natural capital, following the international best
practice and, in particular, the principle of no significant harm of the European Union.
- Promoting just and inclusive transition, so that the ICO is a key player in the change process,
making new opportunities available to all.
The ICO Group’s Sustainability Policy establishes a general framework for action and is
complemented by the other internal policies that govern the Institute’s activity, such as the
Environmental Policy, the Quality Policy, the Policy for the Prevention of Money Laundering and the
ICO Direct Financing 2023
Contribution to GDP 20,613 M€ (1.41% of GDP)
Impact on investment
4,255 M€ (1.51% of
Investement in Spain)
Impact on Exports
2,262 M€ (0.40% of Spain's
Exports)
13,124
(0.90% GDP)
63.7%
7,489
(0.51% PIB)
36,3%
INDIRECT (Suppliers
of financial
companies) and
INDUCED
(Consumption by
employees of
financed companies
and suppliers )
IMPACT
DIRECT
IMPACT
(Companies
financed
directly by
ICO)
Total
20,613 M€
(1.41% of
GDP)
211,647
(1.07% of
employment)
66.3%
107,706
(0.54% of
employment)
33.7%
INDIRECT (Suppliers of
financial companies) and
INDUCED (Consumption
by employees of financed
companies and suppliers)
IMPACT
ICO Direct Financing 2023
Contribution to employment: 319,353 jobs mantained
and/or created (1.61% total employment in Spain)
1
(1) Full-time equivalent
DIRECT
IMPACT
(Companies
financed
directly by
ICO)
Total
319,353
jobs (1.61%
of Spanish
employment)
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
64
Financing of Terrorism, the Anti-Fraud Action Plan and Institutional Anti-Fraud Declaration, the Direct
Financing Policy, the CSR Policy, the Equality Plan, the Data Protection Policy, the Code of Ethics
and Conduct and the Internal Code of Conduct in the Securities Market, among others.
The ICO, as the National Promotional Bank, faces two major challenges. On the one hand, to promote
and accelerate the transformation of the economic model towards a more environmentally and socially
sustainable model. On the other hand, taking into account the structure of the business fabric, which
is mainly made up of SMEs and the self-employed, to accompany the main players in the economy in
this transition, leaving no one behind.
The ICO Group’s strategic focus is the promotion of environmental and social sustainability, and it has
set itself the target that at least 40% of all new financing in the period 2022-2027 should be
sustainable. To this end, internal sustainability assessment procedures have been implemented in
line with the main international standards, with the aim of identifying operations with an environmental
and social contribution.
In recent years, ICO Group has given a strong boost to financing companies for sustainable projects
-environmental and social- as a means of driving the transformation of the Spanish economy towards
a more sustainable and fairer model. As can be seen in the following table, which covers the period
2021-2023, ICO Group has gone from approving new sustainable (environmental and social) direct
financing activity for an amount of 1,810 million Euros in 2021 to an amount of 2,846 million Euros in
2023 (+57%). The same trend is observed in both International Channel and AXIS activity, whose new
sustainable activity has increased from 597 million Euros in 2021 to 694 million Euros in 2023 in
International Channel (+16%), and from 77 million Euros in 2021 to 274 million Euros in 2023 (x 3.6
times).
Total amount
Sustainable
Environment
Social
Sustainability Quota
2021
2022
2023
2021
2022
2023
2021
2022
2023
2021
2022
2023
2021
2022
2023
Balance Direct
Financing (Portfolio)
11,329
11,417
14,014
4,702
4,946
6,181
3,379
3,721
5,375
1,323
1,225
806
42%
43%
44%
New Activity Direct
Financing
2,531
4,066
6,184
1,810
2,223
2,846
1,463
1,407
2,652
347
816
194
72%
55%
46%
International Channel
(cum. disbursements)(1)
1,508
1,805
2,036
597
625
694
480
503
569
117
122
125
40%
35%
34%
AXIS (assets under
management) (2)
229
242
385
76
94
160
69
82
143
7
12
17
33%
39%
41%
AXIS (new activity,
approvals) (3)
93
380
306
77
294
274
50
196
191
27
98
83
83%
77%
90%
(1) Cumulative disbursements since the start of the Facility at 2023 closing
(2) Assets managed by Axis (amounts disbursed minus redemptions for each fund) in FondICO-SMEs, Fond-ICO Sustainability and Infrastructures and Fond-ICO Next Tech
(3) Approvals in FondICO-SMEs, Fond-ICO Sustainability and Infrastructures and Fond-ICO Next Tech
In 2023, ICO continued to promote sustainability by approving operations with a positive
environmental and social impact, resulting in a percentage of direct sustainable approvals
representing 46% of total new approvals of ICO direct activity (55% in 2022, higher than in 2023
due to a lower amount of total direct financing in 2022 compared to 2023) and a volume of 2,846
million Euros approved (2,223 million Euros in 2022), mobilising an investment of 16,314 million
Euros (15,931 million Euros in 2022) and an investment of 16,314 million Euros (15,931 million
Euros in 2022). In the international sphere, 12 operations have been approved (9 loans and 3
guarantees) classified as sustainable for an amount granted of more than 800 million Euros and an
estimated mobilised investment of 7,200 million Euros.
During 2022, the reporting of information on sustainable activities and projects was voluntary on the
part of financial institutions, becoming mandatory from 2023, in order to encourage awareness and
identification of sustainability in the SME segment, as well as to ensure alignment with the ICO’s
strategic objectives.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
65
The Addendum to Spain’s RTR Plan, approved by the EU Council on October 17, 2023, provides
for the channelling through the ICO Group, in public-private collaboration, among others, of an ICO-
Green Facility amounting to 22,000 million Euros for financial support to the green transition. The
financing will be channelled in the form of Mediation Lines, direct financing, purchase of corporate
bonds and capital injections (direct and/or through equity funds). Beneficiaries will be private sector
companies, public sector and households.
The Addendum to the RTR Plan also assigns ICO Group a 4,000 million Euros Facility for the
promotion of social housing - the ICO RRM Facility for the promotion of social rental housing -
whose objective is to increase the stock of social or affordable rental housing, as well as to improve
the existing housing stock. This Facility will be able to finance the construction of energy-efficient
rental housing or energy-efficient refurbishment by public or private developers and will be available
to the real economy from 2024. The ultimate objective is to support the increase in the supply of rental
housing through financing, with a special focus on territorial areas with the greatest tension in the
residential market. It is estimated that from 2024 onwards the channelling of these European funds,
in public-private collaboration, will further increase the ICO Group’s new activity in the field of
sustainability.
For its part, the ICO RRM Business and Entrepreneurs Facility includes a tranche for the tourism
sector of up to 1,000 million Euros to finance projects that promote, among other things, the
sustainability of the sector.
➢ CONTRIBUTING TO SUSTAINABLE BUSINESS FINANCING
✓ At least 40% new sustainable financing by 2022-2027
✓ 6,181 million Euros of net balance of direct sustainable operations at 2023 closing
(+25% compared to 2022) with positive environmental and social impact, 44% of the
total direct portfolio.
✓ 51,292 million Euros of investment mobilised by the end of 2023, in public-private
collaboration
ICO finances directly, or through financial institutions or Axis (its venture capital manager), projects
that promote the ecological transition and the environmental, social and governance (ESG)
sustainability of the business fabric. The purpose of the operations to be financed focuses, among
others, on sustainable mobility, development of renewable energies, renewable hydrogen, energy
efficiency, circular economy, water treatment, improved energy efficiency and sustainability of
buildings, improved accessibility in buildings and housing, urban and rural regeneration and
renovation, transport infrastructure projects, hospitals, homes for the elderly or education with public
and private companies and construction and rehabilitation of social or affordable housing.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
66
Detail of the Direct Financing portfolio, total and sustainable, at 2023 closing:
Sustainability
Categorisation
No. Operations
Net
balance
(millions of
€)
Mobilised
Investment
(millions of €)
Environment
152
5,375
38.4%
44,772
Climate Change
136
5,032
35.9%
42,404
Blue Economy
11
78
0.6%
808
Circular Economy
5
265
1.9%
1,560
Social
254
806
5.8%
6,520
COVID measures
19
382
2.7%
1,110
Housing
223
180
1.3%
761
Health and Social
Inclusion
11
225
1.6%
4,514
Development
Cooperation
1
19
0.1%
135
Sustainable
406
6,181
44.1%
51,292
Not determined
491
7,833
55.9%
65,564
Total
897
14,014
100%
116,856
❖ Green Asset Ratio - Alignment with European Taxonomy at 2023 closing
o Voluntarily reported
ICO Group promotes sustainability as one of the pillars of its strategy, implementing sustainable
criteria in all its areas of activity. For this reason, ICO has considered it good practice to carry out an
analysis of the taxonomic alignment of its loan portfolio. The methodology applied is an approximation
to the criteria set out in Article 8 of Regulation (EU) 2020/852 of the European Parliament and of the
Council of June 18, 2020 on the establishment of a Taxonomy to facilitate sustainable investments.
In this regard, it has been considered of interest to disclose the proportion of exposures to aligned
economic activities relative to the total assets covered in the GAR.
The ratios calculated as at December 31, 2023 are as follows:
• % exposure to eligible economic activities (CAPEX): 15.12%.
• % exposure to eligible economic activities (VN): 14.52%.
• Green Asset Ratio (CAPEX): 7.93%.
• Green Asset Ratio (GAR): 7.48%.
Contextualisation of GAR information
The information reported is voluntary, but is more closely aligned with the criteria defined in Regulation (EU)
2021/2178. The criteria and procedures implemented for the calculation of the Green Asset Ratio (GAR) are set
out below:
x
8.33
x
8.09
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
67
This is the first exercise in reporting alignment information. In order to obtain the most accurate information
possible, publicly disclosed information has been compiled and, in some cases, clients have been contacted to:
- Confirm whether the counterparty is an undertaking subject to Articles 19a and 29a of Directive (EU) 2013/34
(public interest entities with more than 500 employees).
- In generalist activities, ask for the Taxonomy dissemination tables.
- In finalist activities, confirm their alignment.
In the coming years, work will be done to complete the alignment information and, where necessary, obtain
supporting documentation from the partners.
In this exercise only stock information is reported as no alignment information is available from the previous
exercise. Efforts are being made to disseminate flow information from next year onwards.
For the calculation of the ratio, the total assets covered by the GAR (denominator) have been considered.
However, the eligibility and alignment analysis has only been applied to the loan portfolio (numerator).
For the intermediation portfolio, the end-customer has been considered to be entirely composed of small and
medium-sized enterprises, counterparties that are not subject to NFRD.
For green bond transactions where no client information has been obtained, the eligibility and alignment ratios
reported in the Taxonomy Tables disclosed by the counterparties have been applied.
Due to the availability of information, a breakdown of the amount for enabling and transition activities has not
been incorporated.
❖ New sustainable direct activity in 2023
o 46 sustainable operations approved in 2023
o 2,846 million Euros approved with positive environmental and social impact, 46% of
total new direct operations
o 16,314 million Euros of investment to be mobilised, in public-private collaboration
Within the framework of direct financing to companies with Spanish interest, ICO Group relies on the
following financial instruments to encourage investment in activities that contribute to the achievement
of sustainability objectives: green and social loans, loans linked to sustainability objectives, acquisition
of sustainable bonds and green securitisations.
During 2023, ICO Group continued to promote sustainability by approving operations with a positive
environmental and social impact. The sustainable percentage represents 46% of the new direct
operations approved, which translates into a volume of 2,846 million Euros in approved financing
and a mobilised investment of 16,314 million Euros.
The amount of operations approved in 2023 with an environmental impact totals 2,652 million
Euros, with a mobilised investment of 15,437 million Euros. The largest volume of funding is
concentrated in support for the fight against climate change, with a total amount of 2,483 million Euros
allocated.
The amount of operations approved with a social impact totals 194 million Euros, with a mobilised
investment of 877 million Euros. Of the 194 million Euros, an amount of 64 million Euros
corresponds to seven operations of the ICO Housing and Urban and Rural Regeneration Programme
2022-2025, whose objective is the promotion of social housing stock. A loan amounting to 50 million
Euros has also been approved in line with the Sustainability Linked Loan Principles, which has been
linked mainly to social inclusion objectives, such as the deployment of fibre optics in rural areas or
gender equality. An 80 million Euros operation was approved for the electrification of rural areas in
Senegal, which contributes to social objectives.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
68
Detail of new approved direct activity, total and sustainable, at 2023 closing:
Sustainability
Categorisation
No.
Operations
Amount
(millions of
€)
%
Mobilised
Investment
(millions of €)
Environment
37
2,652
43%
15,437
Climate Change
34
2,483
40%
14,581
Circular Economy
3
169
3%
856
Social
9
194
3%
877
Housing
7
64
1%
98
Social inclusion
2
130
2%
779
Sustainable
46
2,846
46%
16,314
Not determined
733
3,338
54%
14,071
Total
779
6,184
100%
30,385
During 2023, the standardisation of sustainability information included in the proposal for direct
operations continued, including, among other fields, identification of the contribution to taxonomy and
SDG objectives, compliance of sustainable financing with international standards, compliance with
Equator principles, as part of the process of continuous improvement of information in this area.
Likewise, clauses continue to be incorporated and improved in asset transaction contracts to include
sustainability reporting obligations.
❖ New direct activity aligned with SDGs by 2023
o Impact of operations on 8 SDGs
o Decent Work, Climate Action and Affordable Clean Energy are the most important ones
ICO Group is firmly committed to the United Nations 2030 Agenda for Sustainable Development, and
through its direct financing activity contributes to the achievement of the Sustainable Development
Goals (SDGs).
During 2023, the main purpose of ICO’s direct activity has been the contribution to the SDG 8. Decent
work and inclusive and sustainable economic growth, with approved direct financing of 3,167 million
Euros, linked to SDG 8 and mobilised investment of 11,087 million Euros.
The contribution to the energy and climate transition is also notable, through SDG 7. Affordable and
clean energy, and SDG 13. Climate action, with a volume of direct financing approvals of 2,159 million
Euros and a mobilised investment of 13,001 million Euros. These objectives have been driven by the
ICO through renewable energy projects, sustainable mobility, green bond underwriting and
Sustainability Linked Loans with climate KPIs.
Finally, it is worth highlighting the boost during 2023, to SDG 11. Sustainable cities and communities
with an amount of 606 million Euros and a mobilised investment of 4,633 million Euros. This objective
has been promoted through sustainable mobility and social housing projects.
Detail of new direct activity approved according to SDG at 2023 closing
x 5.8
x 4.5
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
69
SDG
Approvals
(millions of €)
%
SDG 1
End of poverty
-
-
SDG
Mobilised
investment
(millions of €)
SDG 2
Zero hunger
-
-
SDG
8
Decent work
and
11,078
SDG 3
Health and well-being
-
-
economic
growth
SDG 4
Quality education
-
-
SDG 5
Gender equality
38
0.6%
SDG 6
Clean water and
sanitation
-
-
SDG 7
Affordable and clean
energy
893
14.4%
SDG 8
Decent work and
economic growth
3,167
51.2%
SDG
Mobilised
investment
(millions of €)
SDG 9
Industry, innovation
and infrastructure
63
1.0%
SDG
7+13
Affordable
and clean
energy
13,001
SDG 10
Reducing inequalities
50
0.8%
Climate
action
SDG 11
Sustainable cities and
communities
606
9.8%
SDG 12
Responsible production
and consumption
102
1.6%
SDG 13
Climate action
1,266
20.5%
SDG 14
Underwater life
-
-
SDG 15
Terrestrial life and
ecosystems
-
-
SDG
Mobilised
investment
(millions of €)
SDG 16
Peace, justice and
strong institutions
-
-
SDG
11
Sustainable
cities and
communities
4,633
SDG 17
Partnerships to achieve
the objectives
-
-
TOTALS
6,184
100%
❖ ICO Sustainability mediation lines
o 3,880 million Euros drawable for sustainable investments, in public-private
collaboration
o Around 15,500 million Euros in new ICO RRM Lines contributing to the green transition
In the area of sustainability, during 2023, the ICO has continued to work on channelling budgetary
resources by making available to companies and the self-employed lines that promote sustainable
mobility and the refurbishment of residential buildings, which have grants or guarantees from the
Ministry of Transport, Mobility and the Urban Agenda (MITMA).
The ICO also provides financing to the agri-food and fisheries sector with the aim of supporting
economic sectors affected by drought and other climatic risks, offering aid from the Ministry of
x 3.5
x 7.6
+
x 6.02
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
70
Agriculture, Fisheries and Food (MAPA). During 2023, the deadline for applying for aid under the ICO-
MAPA-SAECA line has been extended to September 15, 2024, the aid limits per customer have been
raised from 10% to 15%, and the MAPA aid allocation has been increased from 20 million Euros to
60 million Euros.
The aid and guarantees of these three lines will mobilise around 3,900 million Euros, in public-private
collaboration. ICO’s objective in managing the lines, in public-private collaboration, is to boost
financing for Spanish companies for sustainable projects.
In addition, during 2023, ICO has collaborated with MIVAU in the implementation of a new line of
guarantees to facilitate financing for the acquisition of the first habitual residence for young
people under 35 and families with dependent minors for a maximum amount of 2,500 million Euros,
which will be partially covered by the State to the tune of 20% or 25% if it has a minimum energy rating
D. Following the approval by the Council of Ministers on February 2024 of the conditions of the line,
during 2024 MIVAU and ICO will process the signing of the agreement to implement and manage this
line of guarantees, whose potential beneficiaries will be able to apply for the guarantee through the
participating financial institutions.
During 2023, ICO Group has been working, together with other public bodies, on the implementation
of the ICO RRM Mediation Lines from the resources assigned to ICO in the Addendum to the RTR
Plan (2
nd
Phase of the Plan), which will be made available to the Spanish productive fabric during
2024-2026, in public-private collaboration. Of the total amount of 20,976 million Euros of the new
ICO RRM mediation lines, an amount of up to 15,505 million Euros is earmarked for the contribution
to improving energy efficiency and supporting climate objectives:
ICO-MAPA-SAECA line. Positive social impact
by supporting economic sectors affected by
drought and other climatic risks. The available
aid budget amounts to 60 million Euros, with a
total eligible credit of 220 million Euros for a
total of around 4,300 beneficiaries.
ICO-MITMA sustainable movility line.
Positive environmental impact through their
contribution to sustainable mobility. The
budget for the granting of subsidies is 1,460
million Euros (1,000 million Euros for
municipalities and 460 million Euros for
companies).
ICO residential building refurbishment line.
Positive environmental impact due to its
contribution to improving the energy
efficiency of buildings. Financing may be
granted to beneficiaries of NextGenerationEU
funds and will reach up to 2,200 million
Euros (1,100 million Euros in guarantees).
SUSTAINABILITY: 3,880 millones
euros mobilisable for sustainable
financing, in public-private
collaboration
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
71
Period 2024-2026
ICO RRM Green Line
Investment projects contributing to the climate objectives of the RRM Regulation
12,505
ICO RRM Enterprises and Entrepreneurs Line / Tourism Tranche
Tourism sector projects promoting sustainability
1,000
ICO RRM Social Housing Line
Construction of energy efficient buildings. Refurbishment of existing buildings where an
improvement in energy efficiency can be demonstrated.
2,000
TOTAL ICO-RRM SUSTAINABILITY MEDIATION LINES
15,505
Source: ICO management budget approved on February 2024
The International Channel Line fosters the financial support of sustainable projects, enabling ICO,
as one of the leading national promotional banks at European level, to play a key role by working in
public-private collaboration in the development of sustainable finance. In this way, the Institute can
align financing activity with the economic policy objectives included in the green transition pillar of the
Recovery and Resilience Mechanism, enabling the transition to a climate-neutral economy in the
areas of energy efficiency, renewable energy production, sustainable transport and industrial
decarbonisation.
In addition, following the adoption of the Granada Declaration on October 2023, a strategic line of
action is established for the common future for the benefit of all the countries of the European Union,
which will enable closer links with LATAM and Caribbean countries. Between January and December
2023, through the ICO International Channel Line, new disbursements were made and/or justified for
17 sustainable projects, amounting to 81 million Euros, financed through CABEI, FONPLATA and
Santander Brazil. In addition, six of these projects were allocated to the Clean Oceans Initiative (COI),
in which ICO participates together with the EIB and KFW to support projects in Asia, Africa and Latin
America to reduce ocean pollution, with a special focus on plastics and other solid waste through
projects for the collection, treatment, recovery and recycling of this waste.
The activity of the ICO International Channel Line is aligned with the ICO Group’s strategy and with
ICO’s various cross-cutting priority lines of action, including environmental and social sustainability.
In terms of commitment to sustainability, it should be noted that 34% of the cumulative
disbursements of the ICO International Channel Line have been categorised as sustainable at 2023
closing (35% in 2022), of which 28% is environmental and 6% is social (28% and 7%, respectively, in
2022). The main contributions to the SDGs have also been categorised, as shown below.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
72
ICO International Channel Line: Cumulative disbursements and distribution by SDGs
ICO continues to increase its efforts to improve the information available on sustainability in its
intermediated activity, where the low average size of the companies financed and the intermediation
model make it a major challenge.
During 2023, the Sustainability Annex in the ICO Mediation Lines implemented in 2022 has become
mandatory. This makes it possible to obtain information on the sustainability of SMEs in a very
capillary manner. This information should enable companies and projects to be better identified in
terms of sustainability, although this is a new process in which it is still necessary to continue
introducing improvements to ensure the highest standards of information quality.
❖ AXIS (venture capital manager of the ICO Group) in the field of sustainability
o 90% sustainable of new AXIS approvals by the end of 2023
o 274 million Euros of approved amount in sustainable investments in 2023
o 900 million Euros call launched in 2023 for sustainable and digital investments to
mobilise loans from the RTR Plan Addendum
Axis’ actions complement those of the Institute and reinforce the ICO Group’s clear positioning in
favour of sustainability. In 2023, Axis has approved a total amount of 274 million Euros in sustainable
investments through its venture capital activity.
1,180
(65%)
1,341
(66%)
503
(28%)
569
(28%)
122
(7%)
125
(6%)
0
500
1000
1500
2000
2022 2023
Cumulative disbursements
(millions of €)
Not determined Environment Social
18%
13%
10%
4%
9%
11%
8%
7%
3%
5%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Climate
Action
Affordable
and clean
energy
Sustainable
cities and
communities
Clean water
and
sanitation
Others SGD
Cumulative distribution by SGD
2022 2023
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
73
Axis implements sustainability criteria through the following financial instruments:
Fund
Target achieved in 2023
Approvals / Calls
2023
Fond-ICO Global
In its latest calls for proposals, the digitalisation and ESG sustainability
criteria of companies and projects have been included as qualitative
criteria to be assessed for the selection of funds.
On December 2023, the ICO has begun to mobilise the RTR Plan loans
with 900 million Euros in venture capital investment for sustainable and
digital projects, in the largest call of Fond-ICO Global. The resources will
come from three of the lines managed by the ICO in the Addendum to
the Recovery Plan -ICO Green, ICO Enterprises and Entrepreneurs, and
Spain Audiovisual Hub - and will boost investments that foster business
growth and green and digital transformation.
900 million Euros*
(16
th
call for
proposals)
Fond-ICO Sustainability
and Infrastructures
In 2023, the change of name from Fond-ICO Infrastructures II, F.I.C.C.C.
to Fond-ICO Sustainability and Infrastructures, F.I.C.C.C. and the
adaptation of the prospectus (and other legal documentation) of the fund
to Regulation (EU) 2019/2088 of the European Parliament on
sustainability disclosures, for classification under article 8 (financial
products promoting environmental or social characteristics), were
approved. To date, the changes have already been registered with the
CNMV.
This fund is focused on participation in sustainable investment projects
in the energy, sustainable mobility, environment and social infrastructure
sectors, seeking a positive impact for people, the climate and the
environment. During 2023, a total of 30 million Euros has been invested
in a fund for the development of a renewable energy project.
30 million Euros
Fond-ICO Next Tech
In 2023, the following has been approved:
- Investment of 89 million Euros in 5 companies whose activities
contribute to the objectives of Climate Change Mitigation and Circular
Economy.
- 70 million investment in three funds under Article 8 of the SFDR
Regulation (EU), the assets of which will be used for environmental and
social impact projects.
- 55 million investment in an Article 9 SFDR fund, the assets of which
will be allocated to projects that develop innovative solutions that
promote the achievement of the goal of zero net carbon emissions.
214 million Euros
Fond-ICO SME
In 2023, the following has been approved:
- 20 million investment in two European Social Entrepreneurship Funds
(EuSEF) under Article 9 SFDR Regulation (EU).
- 10 million investment in an Article 9 SFDR fund, the assets of which
will be allocated to different sustainable impact sectors such as food and
healthy lifestyles, health sciences, education, energy efficiency,
renewable energy, waste management and circular economy, among
others.
30 million Euros
* The date of publication of the rules of the 16
th
call was December 14, 2023 and the deadline for submission of documentation is January
23 and 24, 2024.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
74
❖ Channelling European funds on a sustainable basis: InvestEU, CEF and RRM Addendum
o 72 million Euros of funding approved under the European Connecting Europe Facility-
Alternative Fuels Infrastructure Facility (CEF-AFIF) programme for the promotion of
alternative fuels infrastructure.
o It also invests in green infrastructure venture capital funds
ICO, as an implementing partner of the European Commission, collaborates with various ministries,
organisations and entities channelling resources from European programmes, including the European
Commission’s InvestEU programme. Through this European programme, based on guarantees and
which includes sustainable infrastructure (SIW) as one of its main lines of action, ICO will be able to
facilitate Spanish companies’ access to financing for sustainable investments.
The ICO, as a collaborating entity (Implementing Partner-IP) of the European Commission for
channelling European resources, will continue to provide blending financing (long-term ICO financing
and EU CEF grant) for projects under the CEF (Connecting Europe Facility) programme. At present,
the ICO, together with MITMA, is studying and contributing to the search for eligible projects in the
CEF-AFIF (Alternative Fuels Infrastructure Facility) programme, within the MFF 2021-2027, with a
budget of 1,575 million Euros for the whole of Europe. This programme promotes the participation of
private sector investors and financial institutions in projects that contribute to the environmental
sustainability and efficiency of the transport sector in Europe, promoting alternative fuels supply
infrastructures.
ICO, as IP of the EC, published on June 5, 2023 the terms and conditions of the call called “ICO
InvestEU Green Funds” to channel 150 million Euros, backed by a guarantee package of 75 million
Euros under the InvestEU programme, into up to three venture capital/private equity funds investing
in sustainable infrastructure and its industrial ecosystem in the EU and preferably in Spain. The
resources channelled by the ICO with the InvestEU guarantees will contribute to mobilise, with the
participation of private investors, a minimum of 300 million Euros towards projects to be developed in
the energy, sustainable transport, environment and resources, critical infrastructure and social
infrastructure sectors, in accordance with the parameters set out in the InvestEU programme.
Proposals for participation in these funds were submitted to the InvestEU Investment Committee on
December 2023.
At 2023 closing, the ICO has an InvestEU Guarantee Agreement for up to 112.25 million Euros to
guarantee its investment in four funds for up to 224.5 million Euros (124.5 million Euros Invest EU
Green Funds and 100 million Marguerite III Infrastructure Fund - approved and constituted in 2022).
On December 2023, the 4-year renewal of the InvestEU Guarantee Programme was approved,
extending its validity until December 31, 2027, increasing the maximum amount of ICO’s participation
in the guarantee by 200 million Euros, from 225 million Euros to 500 million Euros, and including the
new Strategic Technology Europe Platform (STEP) window, which will reinforce various European
programmes (including InvestEU) with the aim of investing in strategic sectors for Europe.
During 2023, ICO has continued to approve new financing operations for long-term sustainable
projects for a total amount of 72 million Euros, which will be submitted to the European Commission
to obtain the CEF-AFIF facility grant. These operations consist of the approval of a 36 million Euros
financing for the smart electrification of two operations centres in a public utility company (total
investment of 51.5 million Euros), the approval of a 3 million Euros financing for the production,
storage and supply of hydrogen as an alternative fuel for transport in the Community of Madrid
(total investment of 26.3 million Euros), the approval of funding of 4 million Euros for the construction
of 80 electric superchargers in 10 different locations across Spain (total investment of 40 million
Euros), the approval of funding of 29 million Euros for the installation of more than 1,200 fast charging
points on the road network in Spain and Portugal (total investment of 117 million Euros).
In addition, as mentioned above, in the period 2024-2026 ICO Group will channel around 40,000
million Euros, in public-private collaboration, from the loans of the Addendum to the RTR Plan,
including specific resources to finance investments that support the green transition of companies.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
75
These resources will be made available to the Spanish productive fabric through mediation lines,
direct financing instruments and risk/private capital funds.
➢ TO CONTINUE TO PROMOTE AND EXPAND THE SPANISH AND EUROPEAN
SUSTAINABLE BOND MARKET
✓ 15 emissions issues until 2023 (5 green and 10 social) for an amount of 7,550 million
Euros
✓ Promote projects that generate a positive social and environmental impact
The Institute finances its medium and long-term activity mainly through debt issues on the capital
markets and through bilateral loans from multilateral or private financial institutions. The ICO is not
financed through the General State Budget, nor does it take deposits from private individuals. During
2023, medium and long-term funds of 7,314 million Euros were raised, of which 1,000 million Euros
were sustainable issues (13.7% of the total). ICO channels the funds raised through these
operations towards the business fabric through its direct financing programmes, the ICO Mediation
Lines and funds managed by AXIS.
ICO issued its first social bond in early 2015 when guidelines had not yet been established. Since this
first issue, ICO has demonstrated its leadership in the social bond market. ICO has issued its tenth
social bond on June 2023 for an amount of 500 million Euros maturing on October 31, 2028, to
finance, in public-private collaboration, projects of the self-employed, SMEs and Spanish companies
that promote social and territorial cohesion and generate a positive impact on employment, also in
line with the objectives of the National RTR Plan. This issue brings the volume of funds raised in the
social bond market by ICO issues to 5,050 million Euros.
ICO reinforced its commitment to the sustainable bond market with its first issue in the green bond
market in 2019. ICO has issued its fifth green bond on February 2023 for an amount of 500 million
Euros to finance projects carried out by Spanish companies that contribute to boosting the ecological
transition and the development of sustainable finance, in line with the objectives of the National RTR
Plan. The fifth green bond is part of the ICO’s strategy to contribute to the growth of the sustainable
bond market, which guarantees the channelling of funds to finance projects linked to sustainability
from a social and environmental point of view. This new operation brings the volume of green
bonds issued by the ICO to 2,500 million Euros and strengthens its commitment to the development
of the market for this type of transaction. With the funds raised in these operations, the ICO has so far
promoted 37 renewable energy and clean transport projects by Spanish companies, which will
prevent the emission of more than 900,000 tonnes of CO2 per year.
Transparency towards investors remains a cornerstone for ICO. In 2023, the impact reports
corresponding to the social bond and the green bond issued in 2022 were published. Through
these reports, ICO provides investors with information on the destination of the funds raised and the
impact generated. Funds raised through the social bond reported in 2023 (ninth social bond, issued
in 2022) financed 3,875 projects, mobilised a total of 705 million Euros and enabled the creation
or retention of 34,586 jobs in regions with below-average GDP per capita. In addition, funds have
also been earmarked to finance health care in places facing health difficulties, to provide access to
basic infrastructure and, finally, to social housing. With the green bond reported in 2023 (fourth
green bond, issued in 2022), 14 projects were financed in the categories of renewable energy and
clean transport, which will avoid the emission of 184,712 tonnes of CO2.
With the two new issues made in 2023, the ICO consolidates its position as a benchmark issuer in the
European sustainable bond market, with 15 sustainable operations (10 social operations totalling
5,050 million Euros and 5 green operations totalling 2,500 million Euros), with a total amount
issued of 7,550 million Euros, which are channelled towards projects of Spanish companies to
promote sustainable growth.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
76
ICO has also carried out other initiatives to promote this sustainable debt issuance market. On June
2023, ICO brought together international investors and issuers at the 7
th
ICO Sustainable Bond Forum,
now in its seventh year, a benchmark event for analysing the evolution of green, social and sustainable
bond markets. The event was organised by ICO in collaboration with BBVA, Crédit Agricole, HSBC,
ING and Santander.
➢ PROMOTING SEVERAL SUSTAINABILITY INITIATIVES
✓ Ensuring a more sustainable and inclusive economic growth model
❖ Equator Principles
The Equator Principles (EP) are the financial industry’s framework for identifying, assessing and
managing potential environmental and social risks in project finance. Published in 2003, they are
based on the International Finance Corporation (IFC) Performance Standards and the World Bank’s
Environmental, Health and Safety (EHS) Guidelines.
In keeping with its values and its mission to promote a more sustainable economy, ICO joined the SP
on October 2016 with the intention of improving its risk management system for large financing
projects and in order to identify and mitigate the possible negative impacts on the environment, people
and the climate that these projects could cause.
In 2023, following the Equator Principles Partnership’s proposal for the implementation of a new legal
structure and governance framework, ICO has reaffirmed its commitment to the Principles by signing
a new adherence agreement. This update ensures that the EPs are applied and managed in a robust
and consistent manner, strengthening the Institute’s commitment to the sustainable management of
large projects.
In the projects it finances, both nationally and internationally, ICO categorises projects according to
risk and encourages the implementation of environmental and social management systems and plans
by clients and borrowers in the planning and execution of projects.
ICO voluntarily adopts the Equator Principles and undertakes to be a benchmark in their management
and compliance, including the publication of all projects financed within its scope, on an annual basis
and following the reporting guidelines indicated in the Principles themselves.
ICO’s annual reports are available at the following link:
https://www.ico.es/quienes_somos_ico/transparencia_y_buen_gobierno/principios_de_ecuador
❖ Progress in measuring the carbon footprint of our portfolio – PCAF
In its commitment to decarbonisation, and aware of the weight that greenhouse gas emissions
financed by a credit institution represent, ICO Group has made significant progress in its process to
calculate the scope 3 carbon footprint of its credit and investment portfolio, as a first challenge to be
able to set targets for reducing its CO2 emissions.
To quantify these financed emissions, ICO has an internal tool based on the PCAF (Partnership for
Carbon Accounting Financials) methodology, based on the GHG Protocol. PCAF is an initiative
created in 2015 by Dutch financial institutions that over the years has been consolidated
internationally. The aim of this initiative is to develop a globally accepted standard for the
measurement and disclosure of greenhouse gas emissions associated with loans and investments.
The work carried out in 2023 has made it possible to obtain the first quantitative data, identifying, by
CNAE code, the sectors with the greatest exposure in the entity’s portfolio in terms of absolute CO2
equivalent emissions. Specifically, these sectors were “A-Agriculture, livestock, forestry and fishing;
C-Manufacturing industry; D-Supply of electricity, gas, steam and air conditioning; H-Transport and
storage”.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
77
Formal accession to PCAF as a committed entity is also expected in 2024.
❖ International Climate Finance Strategy
It should also be noted that the ICO is part of the Spanish International Climate Finance Strategy
approved by the Council of Ministers, which aims to meet Spain’s commitments in terms of
international climate finance, specifically in countries defined as non-Annex 1 in the United Nations
Framework Convention (developing countries). The budgets prepared by ICO for the coming years
identify the item that will be allocated to this ICO commitment to finance climate mitigation and
adaptation in these countries.
❖ Annual participation in the elaboration of the SDG Budget Alignment Report
The ICO participates annually, along with other public bodies, in the preparation of the Report on the
alignment of the 2024 General State Budget with the Sustainable Development Goals of the 2030
Agenda, which is carried out by the Ministry of Finance. The ICO has submitted the contribution of its
initiatives to the Sustainable Development Goals, assessing them in accordance with the methodology
proposed by the Ministry of Finance in the ministerial order laying down the rules for the preparation
of the General State Budget for 2024. (Order HFP/1254/2023 of 23 November).
❖ Joint initiatives with other National Promotional Banks
- Joint Initiative for the Circular Economy (JICE): ICO is part of this initiative from 2019,
together with other national promotional banks (BGK in Poland, CDC in France, CDP in Italy
and KfW in Germany) and the EIB, aiming to prevent and eliminate waste, increase resource
efficiency and foster innovation by promoting circularity in all sectors of the economy. JICE
involves a joint funding commitment to the initiative for the period (2019-2023) of 10,000 million
Euros (2,000 million Euros/year). As of June 2023, the initiative has jointly reached a
committed amount of 8,887 million Euros and plans to potentially extend the initiative in amount
and timeframe, while bringing in new shareholders in 2024.
- Clean Oceans Initiative (COI): Since 2020, ICO has been participating in this initiative
together with the EIB, AFD, KFW, CDP and EBRD (new shareholder from 2022) to support
projects in Asia, Africa and Latin America that reduce ocean pollution, with a special focus on
plastics and other solid waste through projects to collect, treat, recover and recycle this waste.
The initiative was extended to 4,000 million Euros at the beginning of 2022 (more than double
the initial amount). By December 2022, 60 transactions have been formalised between the six
shareholders of the initiative for 2,432 million Euros of financing, which represents 61% of the
target achieved with 3 years to go (2025). By sector, 65% is wastewater treatment, 18.8% solid
waste treatment and 16% stormwater treatment.
- European Long Term Investors Association (ELTI): In 2023, ICO brought together
Europe’s national promotional banks at the 10
th
anniversary of the European Long Term
Investors Association (ELTI), which brings together 32 national promotional banks and
institutions in the European Union, including ICO, two international financial institutions and
the European Investment Bank (EIB) as a permanent observer. The entities that make up ELTI
have channelled new financing amounting to 320,000 million Euros in 2022 - of which more
than 30% is qualified as sustainable financing - into projects in the fields of energy,
digitalisation and the fight against climate change, in line with the priorities of the EU and the
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
78
different Member States. At the meeting held in 2023, the ELTI members validated the new
Strategic Framework 2023-2033, with which the national promotional banks reaffirm their
commitment to continue working, in public-private collaboration, to promote long-term
financing for companies, paying special attention to SMEs, and projects in the fields of
innovation, sustainable finance, infrastructure development, education and housing.
- Water Finance Coalition (WFC): ICO became a member of the WFC coalition in 2021. The
aim is to promote and improve the financing of the water and sanitation sector to meet SDG 6
of the Paris Treaty and to contribute to the protection of biodiversity through the establishment
of a network of national and international National Promotional Banks. The coalition meets
quarterly to collaborate, research and exchange knowledge. The founding members are AFD,
CAF, EIB, World Bank and Sanitation and Water for All (SWA), with CAF acting as chair. At
the Finance in Common Summit on September 2023, the WFC Declaration signed in 2021
was renewed and expanded. This declaration has been endorsed by ICO and has defined
objectives aimed, among others, at contributing to attracting finance for climate commitments
and increasing financing for water security.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
79
3 COMMITMENT WITH THE SOCIETY: BEYOND OUR FINANCIAL
ACTIVITY
ICO Group’s activity is eminently financial and therefore projects its effects on society and the Spanish
economy mainly through its financial initiatives. These impacts are those described above. However,
not all of the Group’s contribution to society is through its financial products. Through various initiatives
and projects, ICO Group contributes directly to the sustainable development and prosperity of
communities, economically, socially and culturally. The Corporate Social Responsibility Policy and the
Sustainability Policy specify the Group’s strategic guidelines.
The bulk of the Group’s non-financial activities with an impact on society are carried out through the
Fundación ICO, whose activity is summarised in the specific section, which has an impact on multiple
fronts of support for culture, knowledge and sustainability in general. In 2024, Fundación ICO will
celebrate its 30
th
anniversary. Its activity contributes to disseminating the ICO Group’s actions,
supporting environmental, economic and social initiatives that share the Group’s objectives and
facilitating society’s knowledge of ICO’s activity, as well as collaboration and social interaction with
individual actors and with other public and private entities. The Foundation’s activities add value by
complementing and complementing those of the rest of the Group.
But these actions are not exhausted here, as there are positive contributions through policies on
Human Rights, the treatment of customers and suppliers or specific initiatives such as corporate
volunteering. Lastly, ICO Group also contributes to sustaining public spending through the generation
of profits from its activities and the payment of the corresponding taxes in Spain.
3.1 FUNDACIÓN ICO. PROMOTING CULTURE AND KNOWLEDGE
A. AREA OF ART AND SUSTAINABLE ARCHITECTURE (AP 2023
4
: 1,221,500.16)
➢ ICO COLLECTIONS
ICO Collections represent the most important artistic contributions of the 20
th
century in Spain. The
loan of its works to national and international cultural institutions was maintained in 2022 to further
consolidate the dissemination of this exceptional collection. A comprehensive review of the ICO
Collections was also undertaken and the usual preventive conservation actions were carried out.
➢ COLLABORATION AGREEMENT WITH MUSEO NACIONAL CENTRO DE ARTE REINA
SOFÍA
In the framework of the collaboration agreement signed by the Fundación ICO and Museo Nacional
Centro de Arte Reina Sofía (MNCARS) on August 30, 2012, which was extended twice, seven works
from the ICO Collections have been on deposit at the MNCARS since July 9, 2013. In 2023, the loan
agreement with the MNCARS was renewed for a period of five years.
➢ TEMPORARY LOANS
During the year 2023, four requests for temporary loans from the ICO Collections were dealt with:
▪ Juan Muñoz, Raincoat Drawing, 1992-93: exhibition Juan Muñoz. En la hora violeta, CA2M,
Museo Centro of Arte two of Mayo, Mostoles (from June 17, 2023 to January 7, 2024).
4
AP is Action Plan for 2023. Amounts budgeted in the Action Plan for the main activities of the Fundación ICO during 2023
are included.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
80
▪ Pablo Ruiz Picasso. Femme débout, 1961: exhibition Las edades de Pablo, Museo Casa Natal
Picasso, Málaga (from June 23 to October 1, 2023).
▪ Antonio López, Calabazas, 1992-93: exhibition Antonio López, Fundació Catalunya La Pedrera
Barcelona (from September 22, 2023 to January 14, 2024) and Drents Museum, Assen, Holland
(from January 28 to June 2, 2024).
▪ Contemporary Spanish Painting Collection (19 works): exhibition The Eighties, Benalmadena
Málaga Exhibition Centre (from September 28, 2023 to January 7, 2024).
➢ ICO COLLECTIONS ON THE CER.ES NETWORK
Since 2016, the ICO Collections have been part of the Digital Network of Spanish Museum Collections
(CER.ES). This is a network managed by the Ministry of Education, Culture and Sport, which allows
the online dissemination of the collections belonging to the ICO Collections (http://ceres.mcu.es).
➢ ICO MUSEUM EXHIBITIONS
The Fundación ICO, in addition to being entrusted by the ICO with the management of its art
collections, is in charge of the temporary exhibition programme of the Museo ICO, which since 2012
has specialised in the research and dissemination of Architecture as an artistic and cultural discipline.
Throughout 2023, the exhibition activity offered to the public at the ICO Museum was as follows:
▪ Pablo Palazuelo. The line as a dream of architecture (February 15 - May 7, 2023).
▪ Bleda y Rosa (PHE23). (May 31 – September 10).
▪ Balkrishna Doshi. Architecture for all (Oct 5, 2023 - Jan 14, 2024).
A catalogue was published for all these exhibitions.
The ICO Museum received a total of 42,995 visits in 2023, the second best year in the Museum’s
history.
➢ 20/XXI. IMAGES OF SPAIN
In 2022, the conceptual phase of this wide-ranging photographic project was completed, which aims
to open a debate on the current situation in Spain and generate a new and important public heritage.
In addition, as a pilot project, the photographer Juan Baraja was commissioned to add 16 works from
his series “Y vasca / Euskal Y” to the ICO Collections. As a continuation of the above, in 2023 a new
commission was made to the photographers Bleda and Rosa and meetings were held with several
institutions to try to concretise the implementation of the project).
➢ COMPLEMENTARY ACTIVITIES AND INCLUSION AND ACCESSIBILITY
This section includes guided tours and cultural mediation, workshops for schools, families and young
people, and workshops for people with cognitive disabilities. All these activities are offered to the
interested public free of charge.
Special attention has been devoted to inclusion and accessibility issues, working on activities
especially with deaf people and those with cognitive diversity, aimed at facilitating access to the ICO
Museum for all types of public. Special mention should also be made of the Empower Parents
programme, aimed at families with children with Autism Spectrum Disorder.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
81
B. SUSTAINABLE ECONOMY AND FINANCE AREA (AP 2023: 777,800 €)
The Economy Area promotes activities aimed at generating and disseminating knowledge in economic
and financial matters, mainly through shared reflection and debate between experts and agents in
these fields, with a special focus on Circular Economy and sustainable finance. The activities within
this area are classified into four main sections: publications, training, collaborations and discussion
platforms.
➢ PUBLICATIONS (AP 2023: 208,000 €)
Classics of Spanish economic thought
As part of the international Classics collection, promoted by the Foundation itself, the work
“Resources, Opportunities and Welfare” by the economist Amartya Sen was published, with a
translation and introductory study by Professor Carmen Herrero.
With regard to the collection published in collaboration with the Royal Academy of Moral and
Political Sciences, “Escritos de Francisco de Cabarrús. Economista ilustrado” (Writings of
Francisco de Cabarrús. This work, published in two volumes, was presented at the
headquarters of Bank of Spain, with the participation of its governor, the president of the
Fundación ICO and academics Benigno Pendás, Alfonso Sánchez Hormigo and Pedro
Schwartz.
EURO 2023 Yearbook
Published under the title “The Union in a Fragmented World, A yearbook on the Euro 2023““.
https://www.fundacionico.es/economia/anuarios/anuario-del-euro
The presentation of this edition took place on March 2, 2023 at the Uría Menéndez auditorium
in Madrid. The event was attended by Salvador Sánchez Terán, Managing Partner of Uría
Menéndez, Lola Solana, President of the Spanish Institute of Analysts, José Carlos García de
Quevedo, President of the ICO Group, and Fernando Fernández, Director of the Yearbook. At
a subsequent round table, the Secretary of State for the Economy and Business Support,
Gonzalo García, the President of the AEB, Alejandra Kindelán, the Director General for
Economics and Statistics of the Bank of Spain, Ángel Gavilán, and the Deputy Director of the
European Commission Representation Office in Madrid, Lucas Gómez Ojeda, took part.
Sustainable Finance Notebooks
Three issues of the new publication, “Cuadernos de finanzas sostenibles y economía circular
de la Fundación ICO”, coordinated by Analistas Financieros Internacionales (Afi), have been
published. During 2023, one issue focused on the impact of climate risks on the financial
sector, another on the various aspects of the Blue Economy and, finally, a third on sustainable
investments.
The Notebooks are conceived as a biannual publication on relevant and topical issues relating
to sustainable finance and the circular economy in Spain and the EU, with a practical and
useful approach for the different audiences, institutions and sectors concerned. The three
notebooks have been presented at public events held in Madrid (at the AFI headquarters and
the ICO) and in Santander, at the UIMP.
Fundación ICO 2022 Report
As in previous years, the Fundación ICO’s 2023 Annual Report, corresponding to the financial
year 2022, has been published
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
82
Other publications
In addition to the Euro Yearbook, the Fundación ICO has also maintained the website of the
Competition Yearbook with the repository of all the issues published from 1996 to 2019,
culminating in the transfer of the Yearbook to the National Markets and Competition
Commission (CNMC) in 2023.
Two books have also been published in 2023: “Finance and Public Banking in the 21
st
century:
proposals from the Spanish economy” and “Valuation of companies and other assets” in
collaboration with the Fundación de Estudios Bursátiles y Financieros. In addition, a Study on
the impact of the Circular Economy on Construction has been commissioned and will be
delivered on January 2024.
➢ TRAINING (AP 2023: 329,800 €)
FUNDACIÓN ICO PROGRAMME - CHINA SCHOLARSHIPS. Call for applications 2022-23
The Foundation’s China Scholarship Programme, launched in 2003, has trained approximately
400 young Spanish professionals in Chinese language, culture and economy through an
academic and immersion programme, with very good results. As of March 2020, the
Programme was affected by restrictions on international mobility, with the courses being held
online and it not being possible to travel to Beijing. The Council of Trustees of the Fundación
ICO decided that the last call for this programme would be for the academic year 2022-2023.
The 12 students of the 2022-23 call for applications started online classes on September 2022
at the three universities with which agreements were in place. During the second semester,
from January to June 2023, they were finally able to travel and continue their studies in person.
As mentioned above, the programme ended in 2023.
MUSEOGRAPHY SCHOLARSHIP
It has existed as such since 2006. It is aimed at graduates in Art History, with knowledge of
English and, preferably, specialised training in museology and museography.
The last call for applications took place in 2022, the year in which the entire process was
managed. The new grantee chosen as a result of this process joined the Art Area on March
2023 and will complete her training period on February 2024.
NEW SUSTAINABLE FINANCE TRAINING PROGRAMME
In 2023, a contract has been signed with the Spanish Chamber of Commerce to initiate a
programme to raise awareness among SMEs of the impact of sustainable finance on their
activity. This programme will be carried out in collaboration with the territorial Chambers of
Commerce and will consist, in this first phase, of awareness-raising workshops and the
publication of a Guide for SMEs on sustainable finance, with an eminently practical approach.
The conferences will be held in 2024 and, after them, a training programme for SMEs will be
planned.
FINANCIAL EDUCATION
It has been articulated through the following activities:
o e-FP Programme
In 2023, this collaboration was maintained with the Créate Foundation, through the contracting
of the Programme Coordination services, in order to ensure the quality of the contents, the
fluidity of the contacts between the agents involved, the elaboration and analysis of indicators
and the attention to the mentoring network.
o Financial Education Plan
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
83
We collaborated with the organisation of a conference on training for primary education
teachers, within the framework of the activities for the celebration of Financial Education Day
2023, and by participating in the conference organised by the entities promoting the Plan in
Seville.
o “Training course on financial education for primary school teachers”.
Through an agreement signed with the Universitat de Barcelona and the Universitat Autònoma
de Barcelona, the design and creation of an online course for primary school teachers has
been completed, with the aim of providing them with the knowledge and tools that will enable
them to teach the essential concepts of financial education to their students. The course had
its first “pilot” edition on June 2023 and was presented at the ICO on September 2011.
o Student visits to the ICO
In 2023, Fundación ICO has taken on the coordination of student visits to ICO, having carried
out three such visits for a total of more than 200 students (two visits by vocational training and
secondary education students and one visit by Master’s students).
CIRCULAR ECONOMY
o MOOC on circular economy
On December 2022, the MOOC opened on March of that year, aimed at SMEs and carried out
together with the UNED (corresponding to the 2021 budget), was closed. 542 people enrolled
in that first edition, of which 18.82% completed it (considered a very good completion rate).
The final survey showed a high level of satisfaction, so the course has been updated during
2023, in order to keep open a second edition until the end of 2024.
o ICO Circular Programme
In 2023, a training programme on Circular Economy for primary schools in the Community of
Madrid was contracted through a public tender. The programme has been conceived jointly
with the CSR area of ICO and will be implemented throughout 2024.
➢ PARTNERSHIPS (AP 2023: 180,000 €) and DISCUSSION PLATFORMS (AP: 60,000 €)
Fundación ICO promotes collaborations with other entities and platforms for debate that
encourage reflection and expert analysis through the creation of work forums and the
exchange of experiences and knowledge on highly specialised subjects, most of which are
complementary to the activities carried out by the ICO, thus boosting the Institute’s image.
Under the heading of partnerships, the main activities in 2023:
➢ Carolina Foundation
Fundación ICO collaborates with the Carolina Foundation in an annual programme whose
objective is to hold a seminar related to the different aspects of relations between Spain, the
EU and Latin America. A seminar was planned for 2023 focusing on the possible application
of a taxonomy of sustainable finance in Latin America, in line with what has been approved in
the EU; however, this seminar did not take place in 2023 and has been moved to 2024.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
84
➢ BRUEGEL Foundation
Fundación ICO is a member of this Brussels-based non-profit organisation, whose mission is
to contribute to improving the quality of economic policies through research, analysis and open
debate.
➢ Ibero-American Business Foundation (VIII Meeting of Multilatin Companies)
In 2023, Fundación ICO collaborated with the Ibero-American Business Foundation (FIE) in
the organisation of the VIII Meeting of Multilatin Companies, which was held at the
headquarters of the UIMP in Santander on July 13, 14 and 15, 2023. These annual meetings
are dedicated to analysing the global panorama and the main challenges facing Ibero-America
and its relations with Spain and the EU, highlighting the fundamental role of Multilatin
companies in the development and integration of the region.
➢ Complutense Institute of International Studies (ICEI)
The Fundación ICO collaborates with the ICEI of the Complutense University of Madrid (ICO
is a trustee of the ICEI). In 2023, the collaboration materialised in the financing of the seminar
“2
nd
EIBA EU CatChain Summer School Innovation and Catching-Up Along the Global Value
Chains: Research MethSDG and New Approaches in International Business Joint event EIBA-
CATCHAIN EU Project”, which took place at the UIMP in Santander from August 28 to
September 1, 2023.
➢ SERES Foundation (Society and Responsible Business Foundation).
The Fundación ICO collaborates with the SERES Foundation as a shareholder. SERES
activities and products are designed to promote and measure the social impact of business
activity, contributing to the promotion of corporate social commitment. Thus, the SERES Social
Footprint Index© is a methodology that allows companies to identify the relevant (material)
social contributions of their projects, the identification of metrics that enable their comparability
and, above all, provides a framework of transparency in the criteria for awarding NextGen
grants linked to valuing not only the environmental impact of projects but also their objective
social contribution.
➢ Collaboration with the Spanish Global Compact Network and ICEX in the Training
Programme: Sustainable Suppliers.
During 2023, Fundación ICO collaborated with the Spanish Network of the United Nations
Global Compact and ICEX in the development and implementation of a sustainable supplier
training programme. This programme was designed by the UN Global Compact Spain (UN
Global Compact), Fundación ICO and ICEX España Exportación e Inversiones.
This is an international programme aimed at training the supply chains of large Spanish
companies, partners of the initiative in Spain, in the field of sustainability, taking as a reference
the Ten Principles of the UN Global Compact and the Sustainable Development Goals (SDGs).
This first edition of the programme closed on November 2023, with the participation of more
than 2,000 SMEs.
➢ CRE100DO Foundation
In 2023 the Fundación ICO has started its collaboration with the CRE100DO Foundation,
becoming part of its Council of Trustees. The CRE100DO Foundation was created in 2014 as
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
85
a country programme promoted by the Bankinter Foundation for Innovation, ICEX and the
Círculo de Empresarios, with the aim of supporting the growth of medium-sized companies,
and was set up as a foundation in 2019.
The Fundación ICO and the CRE100DO Foundation share the objective of fostering
excellence in medium-sized Spanish companies, promoting best management practices, the
adoption of new technologies, collaboration between companies, and social and environmental
responsibility.
Within the debate platforms section, during 2023, the Fundación ICO has promoted the holding of
several days of reflection and dialogue related to its priority areas of action. Thus:
• In the area of Sustainable Art and Architecture, it has promoted several conferences on
the dissemination of Architecture, related both to the temporary exhibitions of the ICO
Museum and to the work of prominent Spanish architects. It also organised a conference
to mark the 10
th
anniversary of its “Empower Parents” programme and a conference in
collaboration with the Higher Council of Spanish Architects’ Associations (CSCAE) to
discuss the role and prospects of the circular economy in the construction and architecture
sector. Also, as in previous years, it participated, together with the Arquia Foundation, in
the presentation of the Barcelona International Architecture Festival in Madrid.
• In the area of Sustainable Economy and Finance, in 2023 Fundación ICO sponsored and
participated in:
o The presentation of the Euro 2023 Yearbook
o The presentation of the book, published jointly with the Royal Academy of Moral and
Political Sciences, on the work of Francisco de Cabarrús, which took place at the Bank
of Spain.
o The presentation of the book, published jointly with the Fundación de Estudios
Bursátiles y Financieros, “Valoración de empresas y otros activos”, which took place
in the ICO
o The presentation of the three issues of the Cuadernos de Finanzas Sostenibles y
Economía Circular, which took place in Madrid and Santander, Spain.
o The presentation of the financial education course for primary school teachers, in
conjunction with the Autonomous University of Barcelona and the University of
Barcelona.
o The VIII Meeting of Multilatinas Companies, which was held at the UIMP in Santander
on July 2023.
o The EIBA seminar, jointly with the Complutense Institute of International Studies, which
took place at the UIMP in Santander.
o The presentation, together with the Spanish Global Compact Network and ICEX, of the
results of the sustainable supplier training course, which was held on November at
ICEX.
3.2 OUR ROLE IN THE SOCIETY
3.2.1 HUMAN RIGHTS
ICO recognises that respect for human rights and, therefore, the protection of people’s dignity, well-
being and development, is a basic and unavoidable pillar on which to build and manage all its activities.
As explained in point 4 of this document, in its internal management, ICO Group ensures the protection
of Human Rights by integrating mechanisms for the Prevention of Money Laundering and Terrorist
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
86
Financing, the Internal Code of Conduct in the Securities Market and the Group’s Code of Ethics and
Conduct, as well as multiple internal procedures to prevent any type of corruption or bribery.
ICO also integrates the protection of Human Rights by providing its staff with the appropriate training,
awareness and initiatives. In this respect, ICO is especially and expressly committed to:
• The Universal Declaration of Human Rights and the International Labour Organisation’s
Declaration on Fundamental Principles and Rights at Work.
• Freedom of association and effective recognition of the right to collective bargaining.
• Equal treatment and opportunities for men and women and the fight against all forms of
discrimination.
• The reconciliation of work, family and personal life.
• Professional development and training.
• Health and safety at work.
• Reconciling professional activity with respect for the environment.
• The socio-occupational inclusion of groups with functional diversity.
• Corporate volunteering.
In its role as a financier, ICO promotes development and social welfare by expressly prohibiting the
financing of any activity that could have the effect of violating human rights. In addition, the ICO, in its
commitment to the United Nations Guiding Principles on Business and Human Rights, ensures that
its financing incorporates the protection, respect and reparation of the potential damage that its
financial activity may cause and will ensure that its borrowers or counterparties do not allocate the
funds received from the ICO to activities that may be related to the violation of Human Rights.
As a signatory to the Equator Principles, it relies on due diligence processes to determine and avoid
the human rights impact of its major funding projects.
In its relationship with suppliers and in compliance with the requirements of the Public Sector
Contracts Act, ICO prohibits the contracting of individuals or legal entities convicted of terrorism,
setting up or joining a criminal organisation or group, illicit association, illegal financing of political
parties, human trafficking, corruption in business, influence peddling, bribery, fraud, offences against
the Treasury and Social Security, offences against workers’ rights, prevarication, embezzlement,
negotiations prohibited to civil servants or money laundering. Procurement systems make it possible
to ensure compliance with procurement conditions without the need for a specific supplier monitoring
and auditing system. No supply chain non-compliance has been detected in 2023.
In addition, social responsibility criteria are incorporated into contracting and tendering mechanisms
to ensure that suppliers comply with human rights and labour regulations.
Within the scope of its business relations and as a complement to its commitment to promote the
SDGs and the 2030 Agenda, it also promotes the 10 Global Compact Principles which, in terms of
Human Rights, determine that companies should support and respect the protection of fundamental
Human Rights within their sphere of influence, and that companies should ensure that their employees
are not complicit in Human Rights abuses.
With respect to its environment and society, ICO’s own purpose and the performance of its
professional activity promote the development of people and the positive impact on the sustainable
progress of the economy, fighting poverty and social differences and, therefore, collaborating in the
minimisation of Human Rights violations.
Specifically, the ICO promotes social development and employment through its direct lending activity
and mediation lines to support SMEs, entrepreneurs and the self-employed, by issuing social and
green bonds or by managing financing instruments in its role as the State Financial Agency.
Finally, the ICO has a channel for external reports, complaints or suggestions, and an Information
area that manages, transfers and resolves, in internal coordination with the necessary departments,
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
87
any communications received from third parties and the different stakeholders, as detailed in
subsequent sections.
In 2023, no complaints were received in relation to human rights violations in the course of ICO’s
business, from its shareholders or its suppliers, nor in the previous year.
3.2.2 SUPPLIERS
ICO Group is governed by Law 9/2017, of 8 November, on Public Sector Contracts, although to a
different extent depending on the legal nature of each of the entities forming part of the ICO Group.
Thus, the Instituto de Crédito Oficial and the Fundación ICO have the status of contracting authority
and do not have the status of Public Administration. Therefore, the contracting of both entities is
governed to a large extent by the aforementioned law in the terms established for entities with this
status in accordance with the provisions of articles 316 and following of the aforementioned law.
Furthermore, the ICO, as a Public Business Entity, is subject to centralised procurement rules, which
means that a series of goods and services have been declared centralised by Ministerial Order
EHA/1049/2008, of 10 April, and must be procured through the Directorate General for the
Rationalisation and Centralisation of Procurement.
For its part, AXIS is not a contracting authority, and is governed by the provisions of articles 321 and
322 of the aforementioned Law. In compliance with the same, it has approved the Internal
Procurement Instructions that regulate the contracting procedures, guaranteeing the effectiveness of
the principles of publicity, concurrence, transparency, confidentiality, equality and non-discrimination
In accordance with the provisions of Law 9/2017, of 8 November, on Public Sector Contracts, ICO
Group analyses the incorporation of environmental and social requirements in accordance with the
object of the contract. In this regard, each procedure includes a report from the human capital and
CSR area that analyses the relevance of the possible incorporation of this type of clauses.
The economic and technical solvency of suppliers is analysed in accordance with the provisions of
the Contracts Act and the specifications for each contract, and due diligence procedures are carried
out with suppliers in accordance with current regulations. Contracts expressly include the obligation
to abide by ICO’s code of conduct. Each contract has a person responsible for ensuring that it is
properly complied with. Work is underway to establish some kind of formal control procedure in the
future.
All tenders and contracts signed are accessible through the Public Procurement Platform.
In 2023, 54 tendering processes were launched for the procurement of goods and services for a total
amount of 26.3 million Euros, of which 24.2 million Euros corresponded to the 20 tendering processes
subject to harmonised regulation. In 2022 these figures were 48 tendering processes for a total
amount of 35.8 million Euros, of which 33.8 million Euros corresponded to the 11 tendering processes
subject to harmonised regulation.
32.15 million Euros were paid to suppliers during the financial year 2023, of which 31.90 million Euros
were paid to suppliers resident in Spain (99.2%), compared to the total of 30.6 million Euros paid in
2022 (99.3% to residents).
3.2.3 CUSTOMERS
➢ Consumer health and safety measures
ICO Group, due to its financial services activity, does not have a significant impact on the health of
consumers. Therefore, given the nature of the ICO Group’s activity, in 2023 there were no significant
impacts on customer health through any of the categories of products and services offered, as in 2022.
Therefore, there were no incidents or cases of non-compliance in this area either.
In terms of consumer safety, the only area identified is the protection of consumers’ personal data as
described in point 4.3 above.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
88
➢ Reporting systems, complaints received and their resolution
Communication with our stakeholders and, in particular, with our customers, is considered by ICO
Group to be one of the main tools for continuous improvement and for gathering information to define
our future lines of action.
The ICO Group, through the centralised action of its information area, has three channels for
communication with the public:
• Written attention is provided through the corporate website (https://www.ico.es/contacto),
where interested parties can request further information on products or express their
complaints or suggestions. This tool also enables customers to find out about the activities and
information that the institutions’ offices have on the ICO Group’s lines of credit. This tool also
enables customers to obtain information on other ICO Group activities that are not necessarily
related to financing products.
• There is a call centre, managed by the firm Konecta, which communicates through telephone
calls, the Click to Call application, and through Web Chat, a communication channel with
customers implemented in 2020.
• ICO Group has implemented an on-site customer service to cover all customers who decide
to request information or make their complaints and suggestions directly at the Institute’s
premises.
In 2023 there was a general increase in the number of telephone contacts and letters sent by citizens
compared to the previous year, as a result of the interest aroused by the announced line of guaranteed
financing for the purchase of homes for young people and families. Complaints fell by 51%, as most
of them related to the different lines of guarantees, the relevance of which has been decreasing.
Face-to-face care remained stable in 2023, following an increase in 2022 due to the end of health
restrictions.
Service Channel
2023
2022
Variation
(%)
In writing
4,185
3,831
+9%
Complaints
140
289
-52%
Information Requests
4,033
3,536
+14%
Suggestions
12
6
+100%
Call Centre
22,313
17,799
+25.4%
Call Centre
13,282
13,708
-3%
Click to Call
5,535
1,713
+223%
Web Chat
3,496
2,378
+47%
Direct service
566
567
0%
Total
27,064
22,197
+22.4%
Despite not yet being in force, citizens have shown interest in finding out about the conditions and
dates of the line of guarantees for home purchases by under 35s and families with dependent children,
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
89
with more than 9,000 enquiries on the subject. Requests for information from the self-employed and
companies regarding the ICO lines, mainly Companies and Entrepreneurs, also continued.
With regard to complaints, a total of 140 complaints were received in 2023 (289 in 2022), which were
responded to within an average of 2.7 working days (well below the maximum time limit of 15 working
days). By December 31, 2023, all complaints for the year had been resolved. Of the total, 66% related
to credit operations under the COVID-19 Guarantee Lines, so many of them were passed on to the
financial institutions. Of these, 30% related to the Mediation Lines and the remaining 4% concerned
other issues not related to the products or services managed by ICO.
In addition, an annual survey is conducted among credit institutions mediating ICO loans to ascertain
their expectations of demand for these products, the reasons for their evolution, and opportunities for
improvement. The last wave of the survey revealed that the institutions expect a certain stability in the
demand for credit from the Spanish business community and a certain increase in the use of ICO
products.
3.2.4 PARTNERSHIP WITH SUSTAINABILITY ASSOCIATIONS
Specifically, and apart from the joint initiatives mentioned in point 2.4 (Equator Principles, JICE and
CEO), it plays an active role in several associations or groups that promote sustainability in different
areas, as a demonstration of its commitment to sustainability.
Among the agreements with national and international institutions in the field of sustainability, it is
worth highlighting its collaboration with the Spanish Network of the United Nations Global
Compact, of which it has been a shareholder since 2005 and signatory of its principles and has been
a member of its executive committee for 8 years, to promote the important work of this organisation
in the dissemination of the SDGs and the Ten Principles of the Global Compact in the areas of human
rights, labour, the environment and anti-corruption.
ICO is also an active member of associations aimed at promoting sustainable finance. Since 2021,
the Institute has been a member of the Spanish Sustainable Finance Observatory (OFISO), a forum
for meeting, information and debate for companies, financial institutions, public administrations,
investors and other agents in the financial industry, as well as a platform to give visibility and notoriety
to its commitment to Sustainable Finance. It also forms part of SPAINSIF, where in 2023 ICO
continued to form part of the Council of Directors and Executive Committee, holding the vice-
presidency of Group I, which represents the group of financial institutions, and participated in various
activities such as the “Corporate Engagement” round table at its annual event. We also participate in
FINRESP (Centre for Responsible and Sustainable Finance), which aims to address the difficulties
and needs of the business community, particularly Spanish SMEs, to contribute positively to the
commitments of the 2030 Agenda.
ICO is also a member of FORETICA, where ICO led the launch of the
CSR Action Group for public companies. In 2023, ICO continued to co-
lead the working group, which has 30 public entities with a vocation to
advance towards the achievement of the 2030 Agenda, in which public
companies exchange knowledge, implement individual and joint actions for the integration of the
SDGs and promote best management practices in the field of Sustainability and CSR. As an additional
objective, this Group aims to serve as an example and guide to act as a driving force and lever for
change for the rest of the economic and social actors. In 2023, the Group’s work has focused on
understanding the challenges and opportunities of Scope 3 emissions, focusing on measuring and
reducing this type of indirect emissions that occur in the value chain to contribute to the “Net Zero”
objective. In addition, it has addressed the regulatory developments on sustainability reporting and
the most important aspects reflected in the new European Directive on Corporate Sustainability
Reporting (CSRD), in addition to the reporting standards that accompany it (ESRS).
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
90
ICO is one of the 18 public companies that signed the collaboration
agreement with the Secretary of State for the 2030 Agenda in 2021. This
collaboration agreement facilitates the exchange of good practices in the
implementation of the SDGs and their targets, and the development of
joint projects in this area, including the certification of goods and
services. In addition, this alliance also serves to support outreach and
awareness-raising activities for the achievement of the 2030 Agenda. Throughout 2023, through this
Working Group, ICO has been involved in promoting relevant issues such as responsible public
procurement, human rights and due diligence, sustainability indicators and reports, circular economy,
among others.
ICO is firmly committed to the important role that women and female talent must play in the
development of our economy, which is why in 2019 ICO is joining the “Women and
Internationalisation” working group promoted by the Secretary of State for Trade with the aim of
promoting the role of women in the development and internationalisation of the Spanish economy and
laying the foundations to advance in a committed, firm and coordinated manner in the incorporation
of women in international trade.
In 2023, the second edition of the roundtables was held under the title “The role of women in the
internationalisation of the Spanish economy”, which took place in thematic roundtables. ICO
Group participated in the roundtables on Visibility and Leadership and Training, Financing Instruments
and Support.
Within the framework of this working group, in 2023 ICO has presented different initiatives to
strengthen the role of women in its different fields of action:
• Endorsement of the European Parliament’s #WhereAreThey
ICO is committed to the promotion of female talent and the participation of women in conferences
and debates.
As of 2022, it is agreed that all ICO Group collaboration or sponsorship agreements will include a
clause to encourage the participation of women in the conferences and debates organised within the
framework of each sponsorship or agreement, promoting gender equality in the different events
organised, with greater importance being given to those in which ICO Group representatives
participate.
• Collaboration in the visibility of the Womenalia event in its event for the day of the enterprising
woman.
• ASCRI Diversity Club. The ICO Group, through AXIS, its Venture Capital manager, is a member
of this initiative whose objective is to promote measures in the Venture Capital & Private Equity
industry that promote gender equality, diversity, parity and talent.
• Level 20. The ICO Group, through AXIS, its Venture Capital manager, is part of the Spanish
Committee of Level20. A non-profit organisation that meets on a monthly basis to pursue the
goal of having women occupy 20% of management positions in the private equity industry. It
represents a network with a presence in several countries through its 12 committees.
The objective of the Spanish Committee is to work with the private equity industry in Spain to:
- Attract more women to the sector.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
91
- Ensure that there is support to retain as many women as possible in the industry.
- To help those women who have the ability and
determination to reach the highest levels of the profession.
• UN Women’s Empowerment Principles (Global Compact and
UN Women).
• Promoting gender equality in SMEs. Through the
icoSMEsSDG.ico.es initiative.
In addition, ICO’s participation in the sustainable bond market is not only limited to that of issuer of
this type of debt instruments, but also actively collaborates in the development and promotion of the
market for these bonds as an active member of the working groups of the International Capital
Market Association (ICMA), to whose principles we adhere. Since its launch in 2019, ICO has been
a member of the Advisory Council of the GBP and SBP Executive Committee of ICMA.
ICO Group hosted the ICMA Women’s Network Iberia committee meeting on February 2, 2023. It is a
global, non-partisan forum that seeks to encourage and inspire women of all positions to address
gender equality in the capital markets. The aim is to create a networking platform where different
generations and different levels of seniority discuss equality issues. At this event, several speakers
from the industry discussed the role of diversity in establishing best practices and value for the future
in the financial and technology industries. The event was attended by 83 representatives. Topics
covered included diversity: active listening to new recruits, an inclusive mindset for LGTBI groups and
different cultures and/or nationalities. In addition, a debate was opened among senior staff on diversity
and the incorporation of male panellists.
Updated information on the different initiatives and commitments can be found on the website:
https://www.ico.es/web/guest/sustainability/compromisos-y-estrategias
3.2.5 CORPORATE VOLUNTEERING
Corporate volunteering enables the ICO Group, through the solidarity, dedication and vocation of its
staff, to contribute directly to the maintenance of social cohesion and development of the local
community, through local social entities.
Through its Corporate Social Responsibility (CSR) policy, ICO is committed to contributing to the
social purpose of third sector organisations by signing alliances and collaboration agreements. This
commitment is embodied in the annual preparation and development of a corporate volunteering plan
in which actions are carried out to support the activities of third sector organisations and training
actions in which ICO employees contribute their experience and knowledge to entrepreneurs and
groups at risk of social and employment exclusion.
Throughout 2023, this commitment materialised in a set of activities carried out in collaboration with
the following entities:
• Leukaemia and Lymphoma Foundation - collaboration in the 14
th
edition of the Leukaemia
and Lymphoma Foundation Basketball Tournament and the Gifts with Heart campaign, both
organised to raise awareness in society of the need to take an active role in the fight against
leukaemia, lymphoma and myeloma by donating bone marrow. In total, a contribution of 2,000
Euros was made.
• Gmp Foundation - participation in the 23
rd
Solidarity Paddle Tennis Tournament for
Companies, to raise funds for the implementation and equipping of a new Early Intervention
Centre in Benejúzar (Alicante). The project would reduce waiting lists for families in the
province of Alicante. A contribution of 1,750 Euros was made.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
92
• Madrid Golf Federation - participation in the 2023 edition of the Adapted Golf Tournament to
promote awareness and participation in support activities that favour the social integration of
people with intellectual disabilities and disadvantaged groups. A contribution of 1,000 Euros
was made.
• Rafael del Pino Foundation - workshops given by ICO employees in schools in the
Community of Madrid to raise awareness of the 10 Global Compact Principles and the SDGs
among high school students. No monetary contribution was made.
• Children’s Christmas party - In 2023, a children’s Christmas party was organised for the
children of ICO Group employees. The Juan XXIII Foundation, which promotes the social and
occupational inclusion of people in a situation of psychosocial vulnerability, and the
Juegaterapia Foundation, which helps children suffering from cancer through play,
collaborated in the organisation and details of the party.
• International Cooperation - ICO Group took part in the 11
th
Inter-company Charity 7-a-side
Football Tournament organised by International Cooperation in favour of children at risk of
social exclusion. This project focuses on promoting the comprehensive socio-educational
development of minors through educational reinforcement activities and the development of
skills that favour healthy lifestyle habits, social inclusion and child and youth participation,
through prevention and intervention actions complementary to standardised educational,
leisure and social services. A contribution of 1,600 Euros was made.
3.2.6 RESULTS, TAX AND SUBSIDY INFORMATION
ICO Group is only taxed in Spain. Profit before tax in 2023 (consolidated data for ICO and AXIS):
356.98 million Euros, profit earned in Spain. Corporate income tax accounted for amounted to 104.7
million Euros. In 2022, the profit was 203.9 million Euros and the corporate income tax was 57 million
Euros.
There is a tax management procedure on which the approach to tax compliance is based. The ICO is
taxed under all the applicable tax headings, with no specialisation as a credit institution and as a public
law entity. The tax strategy consists of complying with all legal obligations.
ICO’s contribution to the Fundación ICO was 2.82 million Euros in 2023, the same as the previous
year, which is the only relevant contribution to foundations and non-profit entities, as the rest of the
payments to non-profit entities amounted to 27,000 Euros in different social responsibility actions such
as those detailed in section 3.2.5.
The Fundación ICO prepares its accounts separately from the other entities of the ICO Group, The
profit for the year in 2023 was 343,629 Euros (732,950 Euros in 2022). The Foundation does not pay
GRI INDICATORS - YEAR 2023 (ICO and AXIS):
Millions of €
2023
2022
Economic value generated (gross margin)
384.8
233.5
Economic value distributed (including staff
costs, other administration costs, contributions and
taxes)
152.6
102.4
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
93
tax on the profits arising from its foundational activities, by virtue of the provisions of Law 49/2002, of
23 December, on the Tax Regime for Non-Profit Entities and Tax Incentives for Council of Trustees.
In 2022, the Fundación ICO received a grant of 60,000 Euros from the Ministry of Transport, Mobility
and Urban Agenda under the General State Budget Law for 2022, which was executed during 2023.
There has been no subsidy in the General State Budget for 2023. The ICO and AXIS have not received
any public subsidies.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
94
4 OUR WAY OF DOING THINGS: RESPONSIBLE MANAGEMENT
ICO Group is a modern organisation with internal management systems that enable it to meet the
challenges it faces. ICO Group has developed management and corporate governance tools that
ensure the ethical behaviour, sustainability and transparency of ICO’s activity in all its areas of activity
and internal management.
As a credit institution, risk management is a core element of its activity, with an approach that goes
beyond traditional credit risk management to adopt a much more comprehensive approach that takes
into account the impacts that the Group’s operating and financial activity has on society and the
economy, as well as the impacts that the environment may have on the Group. In this respect, all due
diligence procedures are applied to our activity under the terms provided for in the applicable
legislation and our internal regulations.
Sustainability is of particular relevance, where environmental, social and corporate governance factors
are taken into account, and which constitutes a basic pillar integrated in all the activity in a transversal
manner, both in its asset and liability operations as well as in the internal management of the
organisation, from the perspective of governance and corporate social responsibility.
In recent years, ICO has made progress in sustainability and its integration into its governance,
strategy, business model and risk management, adapting its organisational structure and internal
organisation to the ever-increasing demands of sustainability.
4.1 RISK MANAGEMENT: IDENTIFICATION AND MONITORING
The identification, management and control of risks is a priority task for the Instituto de Crédito Oficial.
This section describes the main instruments available to ICO Group for identifying and monitoring the
different types of risk, as well as the management mechanisms that enable them to be kept under
control. ICO’s status as a credit institution means that it is subject to certain regulatory requirements;
however, the policies and procedures are not exhausted by regulatory mandates, but rather there are
a series of elements that ICO adopts voluntarily as a commitment to best management practices.
➢ COMPLETE RISK MANAGEMENT SYSTEM
✓ Involvement of the General Council
✓ The Risk Map sets out the guiding principles in this area
✓ Coherence between risk treatment instruments
In 2022, the General Council of ICO approved the ICO’s Strategic Risk Management Framework
(Risk Map), with the aim of setting the guiding principles for risk control, housing the risk map and
establishing guidelines to ensure the alignment of all the risk control tools of ICO Group as a whole.
The Risk Map is in any case in line with the provisions of the Capital and Liquidity Self-Assessment
Report (CLAR) and the Risk Appetite Framework (RAF). ICO Group is exposed to financial (credit,
liquidity and market) and operating risks. Other types of risk are also considered, such as
reputational risk, strategic risk, business risk, environmental risk and technological risk.
At a general level, risks are characterised on the basis of the so-called “three lines of defence”:
• 1
st
line of defence. The units of the Directorate General Business have the main responsibilities
for risk identification, recognition and management.
• 2
nd
line of defence. The risk management function should oversee the effectiveness of risk
management, being responsible for identifying, measuring, monitoring and disclosing risk at the
enterprise level, independently of the first line of defence. It also includes the compliance function,
which is responsible, among others, for ensuring that the bank operates with integrity and in
accordance with applicable laws, regulations and internal policies.
• 3
rd
line of defence. The internal audit function conducts both risk-based and more general audits
and reviews to ensure that the overall governance framework, including the risk governance
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95
framework, is effective and that policies and processes are in place and consistently applied,
providing independent and objective advice.
Financial risks
ICO has appropriate methodologies and procedures adapted to its specific nature that enable the
identification, management, monitoring and control of financial risks, allowing them to be monitored
and followed up. In particular, ICO has a Risk Policy Manual approved by the General Council in 2013
and amended periodically (most recently on November 2023) which sets out in detail the treatment of
these risks, which in this manual are grouped into three main categories: liquidity, market and credit
(which is the one that receives the most detailed treatment). This treatment of risks is carried out in
accordance with existing regulations, both in terms of the Bank of Spain’s circulars and
recommendations, and in terms of international standards, such as the Basel II Capital Accord.
Operating risks
With regard to operating risk, ICO has monitoring policies and activity indicators, also adapted to its
specificities, relating to the development of internal processes and procedures, the definition of
policies for monitoring customers and operations and internal control of incidents, and the existing
contingency plan. In addition, there are also a series of periodic controls on procedures and
operations, which are carried out by the various internal and external auditing services.
Sustainability risks
So far, the focus has been on climate and environmental risks, as these are the most developed, and
in line with the ICO’s strategic plan, sustainability is gradually being transferred to risk management.
Of note, for example, is the implementation and incorporation of the environmental performance ratio
and the average emissions intensity ratio in the electricity production, transmission and distribution
sector in the Risk Appetite Framework. These level III indicators (in accordance with the classification
included in the RAF as described below) are not linked to capital, so the thresholds are defined
according to the Institute’s strategic criteria that enable the development of a business plan aligned
with international and national commitments in environmental matters, seeking to promote the
sustainable economic growth of companies and achieve a portfolio in which the sectors with the
greatest environmental risk gradually lose weight, limiting the physical and transition risk of the
portfolio. For the categorisation of operations that can be included as environmental, categories are
identified according to internal criteria, including, among others, the approximation to the Taxonomy
5
of the objectives developed to date, and internationally recognised standards such as the Green Loan
Principles (Loan Market Association and Asia Pacific Loan Market Association) and the Sustainability
Linked Loan Principles (Loan Syndications and Trading Association). There is also a social
categorisation.
As part of this commitment to identifying and managing climate risks, in 2023 the ICO carried out an
exercise to calculate average GHG emissions intensities by sector of the Spanish economy, based
on global data and accepted methodologies. This resulted in a ranking of all sectors in which the most
polluting sectors are electricity and gas supply, manufacture of other non-metallic mineral products,
extractive industries and maritime transport.
Using these data, a transition risk assessment was carried out through the ICO portfolio
classification.
With regard to physical risk and based on the INFORM Risk indices (a multi-stakeholder forum for
developing quantitative analyses relevant to humanitarian crises and disasters, whose scientific lead
is the European Commission’s Joint Research Centre), the “natural hazard” category was selected
5
The methodology for the Taxonomy will be incorporated into the categorisation as and when the Taxonomy regulation
comes into force.
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96
from the components representing physical risks (earthquakes, floods, tsunami, cyclones and
droughts) for the 191 countries included in the INFORM database and cross-referenced with the
outstanding stocks of the ICO portfolio.
The outcome of these exercises is used internally as input for monitoring and assessing climate-
related physical and transitional risk.
The ICO is working on the development of a model for the assessment of ESG risks that can be
included in a more formalised way in the analysis of direct financing operations affecting credit risk, in
accordance with the applicable regulations and market practice.
Internally, the management of environmental risks is integrated in the Environmental Management
System explained in section 4.4.5, but the management of this type of risks is done in an integrated
manner for all the Institute’s activity through the management mechanisms explained in this section.
➢ REGULATORY RISK MANAGEMENT TOOLS: CAPITAL AND LIQUIDITY SELF-
ASSESSMENT REPORT (CLAR) AND RISK APPETITE FRAMEWORK (RAF)
➢ Required by Bank of Spain in accordance with banking supervision regulations.
Without prejudice to the other mechanisms and policies discussed below, the following two
instruments stand out as key elements in risk management
The Capital and Liquidity Self-Assessment Report (CLAR) is one of the existing tools in this area.
The ICO is obliged to prepare the CLAR, a document in which institutions identify, measure and
aggregate their risks in order to determine the capital and liquidity needed to cover them and in which
they plan their capital and liquidity levels in the medium term. Since 2016, a multidisciplinary ICO team
has been responsible for preparing the Institute’s CLAR every year. In recent years, ICO’s risk profile
has remained at low to medium-low levels. This report includes three stress tests (macroeconomic,
business and liquidity) on ICO’s baseline scenario, with a 3-year time horizon. The tests are used to
determine ICO’s capital needs in the event of the different scenarios envisaged in the tests,
determining its capacity to face crisis situations. In addition, the liquidity stress scenario will also
analyse the evolution of different metrics related to the Institute’s liquidity. Elements related to
sustainability and its management are also introduced. Once this has been done, the ICO’s General
Council must be informed of and approve the CLAR, which is then submitted to the Bank of Spain.
The Risk Appetite Framework (RAF) defines a series of indicators at three different levels depending
on the importance within the management of the Institute. According to the latest update approved by
the General Council on July 2023, 30 indicators are considered:
• 3 Tier I indicators: two of them required by the Regulator, which measure the capital and liquidity
position, and a third one, which measures the impact on the income statement in a stress scenario
on ICO’s 5 main direct borrowers.
• 6 Tier II indicators: regulatory or basic indicators that develop the previous ones for the most
relevant risks of ICO, whose objective is to measure the impact on capital and liquidity and their
evolution.
• 21 Tier III indicators: monitoring and management indicators, which allow the evolution of the
ICO’s current activity to be monitored, including those related to environmental risk (two indicators)
and technological risk.
The RAF is reviewed annually and adapted on the basis of the results of the CLAR. The General
Council receives regular information on the evolution of the indicators through a scorecard.
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4.2 GENERAL INSTRUMENTS FOR RESPONSIBLE MANAGEMENT
All of the ICO Group’s internal regulations are focused on the correct monitoring of the various types
of risks it faces and on appropriate management in accordance with the best standards. The approach
is always holistic and the entire organisation is involved to ensure that management is always carried
out in accordance with the highest ethical and corporate social responsibility standards, applying due
diligence in its actions. Both the General Council and senior management receive regular information
on these matters and are involved in their areas of competence. The most relevant policies are
approved at the General Council level and the General Council receives regular information on
performance in the areas of activity, sustainability, internal control and anti-fraud. There are units and
collegiate bodies with specific functions, the most important of which are detailed below, in addition to
those described in the previous section.
➢ ICO STRUCTURE INCLUDES APPROPRIATE RISK MANAGEMENT UNITS
✓ The Internal Audit and Compliance units cover functions that are fundamental to the
treatment of risks
✓ The General Council has an important role to play
• Internal Audit Department and Audit Committee. The ICO has a policy, called “Internal Control
Functions”, which sets out the internal control bodies of the Institute and the internal control
functions performed by them. As set out in the policy, the ICO has risk measurement
methodologies that enable it to analyse the various risk factors to which it is exposed in an
appropriate manner. Likewise, the identification, quantification, control and continuous monitoring
of risks enable an appropriate relationship to be established between the profitability obtained from
the transactions carried out and the risks assumed, and an adequate internal control environment.
In accordance with the Basel Committee on Banking Supervision’s Principles of Corporate
Governance for Banks, the ICO has in place a robust corporate governance framework with well-
defined organisational responsibilities for risk management, commonly referred to as “the three
lines of defence” mentioned above: - The Business line. - A Risk Management and Compliance
function, independent of the first line of defence and - An Internal Audit function independent of
the first and second line of defence.
Internal control in ICO Group with regard to corporate governance is carried out by the internal
operating bodies with competence in the regulatory area of the activities.
In accordance with the Audit Guidelines approved by the General Council, the Internal Audit
Function in the ICO is exercised by the Audit and Compliance Committee and the Internal Audit
Department. The Internal Audit Department audits the business and operational procedures, risk
management and the internal control system on an ongoing basis. The internal control carried out
by the Internal Audit Department is reinforced by the work of the Audit and Compliance Committee,
whose functions include proposing measures to speed up and facilitate compliance with
recommendations. In order to comply with article 43.2 of Royal Decree 84/2015, of 13 February,
which implements Law 10/2014, of 26 June, on the regulation, supervision and solvency of credit
institutions, the Internal Audit function reports periodically to the ICO’s General Council on the
verification work carried out by the Internal Audit function.
Externally, ICO Group periodically submits its actions to the control of external experts and various
national bodies (General State Comptroller’s Office -IGAE, Inspectorate of the Services of the
Ministry of Economy, Trade and Business, Court of Auditors, Bank of Spain and, more recently,
the Independent Authority for Fiscal Responsibility - AIReF) and those EU bodies that are
competent to do so. In 2023, 22 audit reports were issued (26 in 2022), with no significant incidents
arising from them.
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• Regulatory Compliance Area and Regulatory Compliance Technical Committee. The
Regulatory Compliance Area was created to protect the reputation and integrity of the Institute, to
promote the ethical standards applicable to it and to reinforce responsibility and transparency. It
is also responsible for identifying and assessing compliance with regulations related to the
prevention of money laundering and the financing of terrorism, and for coordinating the internal
policies and procedures implemented in this field. It is also involved in identifying, assessing and
controlling the risks that may affect the integrity and reputation of the ICO Group, generated as a
result of non-compliance or non-observance of the rules or measures recommended by the ICO
Group’s internal policies or regulations, or by external recommendations or regulations that may
affect it.
The Technical Committee for Regulatory Compliance also deals with issues related to the
prevention of money laundering and the financing of terrorism and due diligence measures, as
well as matters related to the correct application of the data protection policy. It is also aware of
and analyses any new regulations that may be applicable to the ICO and proposes relevant
training actions in this area. Finally, it also oversees the implementation of the decisions adopted
by the Audit and Compliance Committee.
4.3 SPECIFIC ETHICS AND RESPONSIBLE MANAGEMENT TOOLS
Without prejudice to the global nature of the measures and tools described so far and the interrelation
between them, the main tools available for ethical and responsible management are grouped below
by topic. ICO Group has developed management and corporate governance tools that ensure ethical
behaviour, sustainability and transparency in all its areas of activity and internal management.
➢ FIGHT AGAINST FRAUD, CORRUPTION, MONEY LAUNDERING AND TERRORIST
FINANCING
✓ In compliance with applicable regulations and with a cross-cutting approach for the
entire organisation
In all the Group’s actions, undesirable conduct such as those described above is prevented through
due diligence. Prior to approval, all direct transactions are analysed for these risks. Specific tools
include the following:
• Code of Ethics and Conduct, Internal Code of Conduct for the Securities Market. The
purpose of the ICO Code of Ethics and Conduct is to define and develop the basic foundations of
behaviour and the necessary guidelines for action so that the Institute’s principles are manifested
in the individual actions of its employees, managers and directors, in internal and external relations
established with customers, suppliers and third parties, as well as in its actions in the markets.
The Code of Ethics and Conduct is therefore applicable to all ICO staff and directors of the General
Council, and to trainees undergoing training at the Institute; 100% of them receive it when they
join. In the case of suppliers, the company providing the service will be required to comply with the
code for those of its collaborators who provide services for the ICO. This section regulates ethical
conduct and includes internal policies on, among other issues, Social Responsibility, Corporate
Gifts, Travel, Representation Expenses and Corporate Credit Cards.
The Internal Rules of Conduct for Securities Markets identify the units of ICO Group that carry out
securities market-related activities and define the separation they must adopt to avoid potential
conflicts of interest or insider trading. The version in force was approved by the General Council
on February 2017 and was last revised on February 2022. In 2023, there were no incidents of non-
compliance with the regulations, as in the previous year.
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The Code of Conduct and the Internal Code of Conduct of the Securities Market are public and
accessible through the website
6
.
• Ethics Channel. The ICO Group’s Ethics Channel is an internal information channel for reporting
breaches or omissions of applicable regulations, set up in accordance with Law 2/2023, of 20
February, regulating the protection of persons who report breaches of regulations and the fight
against corruption. This is an obligation derived from the aforementioned Law and which ICO
Group has adopted during 2023.
The channel is implemented through an on-line tool external to the domain of the Instituto de
Crédito Oficial. The message is transmitted to an external provider’s tool in order to guarantee
total objectivity and transparency in the communication management process. Communications
may be anonymous, with identification of the informant not being obligatory, and will be answered
through the same channel through which they were received. Communications may be followed
up by means of the tracking code assigned in the message in which the report was received.
This channel may be used by any employee of the Instituto de Crédito Oficial or any other third
party envisaged in the scope of the regulation, who may have knowledge of unethical, fraudulent
or unlawful conduct within the ICO Group. The use of the Ethics Channel requires that users act
in good faith and that the information provided is truthful.
The channel is accessible via the following address: https://www.ico.es/canal-etico
In 2023, no complaints were received either through the previous IT system or through the newly
implemented functionality of the ethics channel. In 2022 there was one labour-related complaint,
which was processed and resolved.
• Prevention of money laundering and terrorist financing. ICO Group is aware of the important
role that financial institutions play in prevention and therefore collaborates with the competent
authorities and joins forces with the rest of the Spanish financial system in the fight against all
forms of money laundering and terrorist financing. The Prevention of Money Laundering Policy,
the latest version of which was approved by the General Council on December 2022, sets out the
rules of action and control and communication systems to prevent access to the institution by
undesirable persons or groups, and establishes the criteria for accepting customers. The
aforementioned Policy is developed in a procedure called Management Procedure for the
Prevention of Money Laundering and Financing of Terrorism, incorporating the latest regulatory
developments at national and European level, the latest revision of which took place on June 2023
and which incorporates specific forms on the knowledge of customers. In compliance with the
aforementioned Policy and the Group’s Training Plan, two training sessions were held in 2023,
given by the AML/CFT TRAINING CENTRE, attended by a total of 160 people, with special
emphasis on training people who have recently joined the ICO.
In addition, following the recommendations of the External AML/CFT Expert, a physical mailbox
was installed at the ICO’s headquarters, managed by the Regulatory Compliance area, to facilitate
the anonymous submission of internal complaints and reports of irregularities, which, should they
occur, would be handled either directly through the Regulatory Compliance area or by
communication to the Ethics Channel. This mailbox is located in an accessible area of the ICO’s
headquarters, but is free of security cameras and is not directly associated with the Compliance
area. No notifications were received through this mailbox in 2023, as in the previous year.
• Anti-Fraud Measures Plan. ICO Group has adopted a new Anti-Fraud Measures Plan for 2023
that reflects its commitment to the prevention of fraud and corruption, through a robust control
system in which all its employees participate.
6
https://www.ico.es/en/web/guest/pol%C3%ADticas-internas-de-funcionamiento
https://www.ico.es/web/guest/sustainability/compromisos-y-estrategias
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• The entities that make up ICO Group have a zero tolerance policy towards fraud and corruption,
which is exercised through a robust control system specially designed to prevent and detect, as
far as possible, acts of fraud and to correct their impact, should they occur. The purpose of the
ICO Group’s Anti-Fraud Plan is to prevent fraud and detect irregularities that could constitute a
first indication of fraud or any other illegal act covered by Order HFP/1030/2021. The aim of this
Plan is to systematise the internal regulations (policies, procedures, processes and instructions)
applicable in the entities that make up the ICO Group, regulations that are geared towards
transparency in operations, and which must serve as a guarantee of integrity and for the prevention
of fraud in its activity.
• This Plan is complemented by the Institutional Declaration on the Fight against Fraud, signed by
the President on May 2023.
• Both the Plan and the Declaration are accessible through the website:
https://www.ico.es/pol%C3%ADticas-internas-de-funcionamiento
In order to improve staff awareness of their obligations in this area, several training actions were
organised in 2023 for the entire workforce and specifically for the areas most involved, which were
held in the first months of 2024.
All internal regulations are in line with the general aim of preventing fraud or other undesirable conduct.
For example, the Direct Financing Policy includes a series of exclusions from financing to potential
customers operating in non-cooperative jurisdictions in tax matters, subject to sanctions or in other
cases such as human rights violations.
➢ DATA PROTECTION AND CYBERSECURITY
✓ To comply with legal obligations and to ensure the highest standards of protection
• Protection of personal data. The ICO has approved a personal data protection policy adapted
to EU Regulation 2016/679 and Law 3/2018, which is developed and implemented in the internal
processes and processing carried out at the Institute itself. It also has a Register of Processing
Activities and its website provides information on ICO’s personal data protection policy.
Furthermore, ICO Group has a data protection officer who supervises, confidentially and
independently, compliance with personal data protection regulations within the Group. There were
no data protection incidents in 2023, as in the previous year.
• Information Security Committee. Information Security Policy. Information security is managed
in an integrated and coordinated manner with the requirements inherent to the nature of the ICO
Group’s activity in order to prevent potential threats. All of this is in accordance with current
legislation and, in particular, with the National Security Scheme. Specifically, the National Security
Status Report (INES) periodically assesses the security status of the systems as a method of
security governance, and no significant deficiencies have been detected.
➢ SUSTAINABILITY AND CORPORATE SOCIAL RESPONSIBILITY
✓ Sustainability is an overarching principle for the whole of activity
In accordance with the ICO Group’s Strategy 2022-2027, the Group’s actions seek to transform the
growth model of the Spanish economy in order to achieve a more sustainable and digital growth
pattern with a greater capacity to generate quality employment. In this way, sustainability is a strategic
pillar that permeates the ICO Group’s activity as a whole. Consequently, sustainability is reflected
both in terms of assets and liabilities and in any aspect of the Group’s activity. This commitment to
sustainability at all levels includes continuous reporting to the General Council on regulatory
developments, frameworks, actions and metrics.
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101
• Sustainability Policy. The Sustainability Policy, approved by the General Council on February
2020, establishes sustainability as a basic guiding pillar of the ICO Group’s actions, both for its
asset and liability operations, as well as in the internal management of the organisation, also from
the perspective of governance and Corporate Social Responsibility (ESG - CSR). It therefore
involves all areas of the organisation and its activity, acting as a management foundation that
enables it to fulfil its mission as a public and promotional bank. The effects of this orientation spill
over into other policies, such as direct financing, which contemplates the impossibility of financing
projects with possible negative social or environmental impacts where there is no adequate
mitigation. During 2023, work has been carried out on a review of this policy with a view to its
approval during 2024. This revision will maintain the ICO Group’s commitment to sustainability,
clearly establishing the presence of sustainability in the Group’s mission, strategy and values.
• Sustainability Committee. This committee meets ordinarily every four months, without prejudice
to other meetings at the discretion of the President of ICO Group when any matter so requires.
The functions of this committee include defining the concept of sustainability adopted by the ICO
Group, as well as raising awareness and communicating it to the entire workforce. This body,
chaired by the President of ICO and made up of members from all the General Directorates, AXIS
and the Fundación ICO, is also responsible for drawing up and monitoring ICO’s position with
regard to the activity considered sustainable by the ICO Group. It also identifies the regulatory
developments on sustainability that affect ICO Group and, where appropriate, is responsible for
the implementation of such standards. Finally, it also promotes and coordinates the sustainability
initiatives carried out in the ICO Group, as well as any other sustainability issues that may arise
outside the scope of the aforementioned.
• Environmental policy. In order to guarantee environmentally friendly and preventive action, ICO
Group has approved and documented an environmental policy fully adapted to the requirements
of the ISO 14001 Environmental Management Systems standard since 2020 and a code of good
environmental practices. ICO, as a signatory of the 10 Principles of the Global Compact, the
Equator Principles and the Spanish Collective Commitment to Climate Action signed with the AEB,
CECA and other Spanish financial institutions, and in its alignment with the 17 Sustainable
Development Goals for the 2030 Agenda and the Paris Climate Agreement (COP-21), is
committed to controlling and managing its direct and indirect environmental impacts. Since 2021,
the Environmental Management System has been certified by European Quality Assurance as
detailed in section 4.4.5.
• Corporate Social Responsibility Policy. ICO Group has approved and published a CSR Policy,
with the aim of being an entity that integrates ethical, social and environmental values, that is
transparent and socially committed, that applies the principles of good governance and is thus
recognised in its activity and in its relationship with its stakeholders. To this end, the principles that
govern its activity are established: good governance and transparency, respect for the
environment and the environment and the 10 principles of the United Nations Global Compact.
➢ PERSONNEL MANAGEMENT
✓ With respect for workers’ rights
• Labour relations. The personnel policies applied in ICO Group are based on respect for the
human and labour rights of employees, and the implementation of actions to facilitate and enhance
their professional aptitude and development. Equal opportunities, non-discrimination policies,
diversity and work-life balance are fundamental principles in the development and implementation
of labour relations between ICO Group and its staff. The following chapter gives details of the ICO
Group’s personnel management.
• Management by objectives. management model implemented to effectively direct and improve
ICO’s performance, establishing strategic and general objectives and contributing to the valuation
of employees’ professional merits, rewarding effort and the achievement of objectives.
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Management by objectives is of great value due to its uniqueness within the Administration, as it
allows the efforts of the different areas to be aligned with the roadmap, and to improve the quality
of work and professional performance. The approval of the strategic objectives proposed by the
Management Committee is subject to the approval of the Ministry of Economy, Trade and
Enterprise. All employees receive an annual performance appraisal.
The Management by Objectives System, which allows variable remuneration to be linked to the
achievement of objectives, incorporates transversal objectives in the organisation related to the
four strategic axes, allowing this system to be aligned with the provisions of the Group’s Strategy
and fostering the integration of the strategic axes into the culture of the organisation. Thus, in
2023, in line with the Strategy for the period 2022-2027, for example, a sustainable direct activity
objective and a digitalisation and governance objective were established, which, as in previous
years, were met.
➢ ORGANISATION AND QUALITY
✓ To ensure effective and accountable management
• Quality Policy. ICO has implemented a process management model and approved a Quality
Policy fully adapted to the ISO 9001 standard. This Policy is the appropriate framework for the
development of the procedures and tools necessary for the establishment of quality objectives and
the implementation of an effective Quality Management System, based on the requirements of the
ISO 9001 standard. It aims to identify and satisfy the needs and requirements of ICO’s internal
and external customers and stakeholders. It also aims to guide ICO towards operational
excellence, with the implementation and application of efficient processes and products, carried
out with the full involvement of all employees.
• Regulatory roadmap. ICO Group has a complete, coherent and systematic body of regulations,
aimed at ensuring that the overall operation of the ICO is in line with the best standards in the
sector and with all the ethical and responsible management practices addressed in this section.
➢ TRANSPARENCY
✓ To provide society with information on its activities
• Transparency. ICO Group provides its stakeholders with all relevant information on its
organisational structure and activity. In addition, and in accordance with the provisions of the
Transparency Act, it provides direct access to the Spanish Government’s Transparency Portal, via
a link available on the ico.es website. This makes it easier for users to consult all the available
data. Every year, the Audit Report on the “Consolidated Financial Statements and Consolidated
Management Report” is prepared and published on the website, with all the economic information
and information relating to its activity as a financial institution, including this Non-Financial
Information Statement (NFS). The financial statements are audited by an independent expert. This
NFS is prepared in accordance with the GRI Standards and the requirements of Law 11/2018 on
non-financial information and diversity. This annual report is also subject to verification by an
independent expert in order to increase stakeholder confidence. Along the same lines, ICO Group
prepares the Progress Report in relation to the 10 Principles of the United Nations Global
Compact.
In addition, in order to raise public awareness of the Group’s activities, intense communication and
dissemination work is carried out, as detailed in section 4.4.4
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4.4 MAIN INTERNAL MANAGEMENT RESULTS
All of the above with respect to internal management is reflected in the results discussed in this
section. The ICO Group, like any other entity, consumes resources, which are included below,
including the estimated carbon footprint for 2023. The communication of the activity is also mentioned
and, finally, the certifications obtained that demonstrate the effectiveness of the current management
systems.
4.4.1 RESPONSIBLE USE OF NATURAL RESOURCES
ICO Group identifies the following environmental aspects in the development of its activity in its
corporate facilities:
▪ Efficiency in the consumption of resources and adaptation to climate change. ICO Group
carries out regular awareness-raising campaigns on the consumption of electricity, water and
paper in order to ensure the responsible use of these resources by employees in the workplace
and that these habits can be transferred to the personal sphere. Thus, the objective of
maximising efficiency in the use of resources is transversal in the ICO Group. In order to
achieve greater efficiency in the use of resources, an awareness campaign has been
implemented during 2023, which has taken the form of the installation of posters at ICO
headquarters reminding of the importance of reducing the consumption of materials as far as
possible. In addition, during 2023, lighting systems at the end of their useful life have been
replaced with LED technology, with the consequent lower consumption, as well as the
replacement of some electric water heaters with less energy-consuming equipment. Work is
also underway to undertake a comprehensive refurbishment of the ICO headquarters that will
result in an overall improvement in the efficiency of the facilities. In order to adapt to climate
change, an energy efficiency study has been carried out and will be taken into account in this
refurbishment, which will also lead to a better adaptation of working conditions to the
foreseeable consequences of climate change.
▪ Atmospheric emissions. An important objective for ICO is to avoid and reduce greenhouse
gas emissions as much as possible. It does this through the implementation of energy saving
measures and the use of energy from renewable sources in the heating and air conditioning
of its offices: since November 2023, the electricity supplier has been subject to a guarantee of
origin commitment certifying that all consumption comes from renewable sources. In addition,
in order to reduce its carbon footprint per employee, it promotes the use of alternative means
of travel, such as videoconferencing, and ensures that each trip is kept to a minimum.
▪ Waste generation. ICO has the necessary means at its facilities to segregate and recycle the
waste generated in the course of its activities and endeavours to use ecological and recycled
materials.
▪ Biodiversity protection: ICO only operates in Madrid in locations that do not generate
negative impacts on biodiversity and land use.
With regard to the consumption of natural resources, ICO Group consumes the resources necessary
to carry out its activity, with a lower impact than other sectors of activity. In any case, annual
consumption is measured in order to analyse the impact of the measures implemented. The
consumption of the Group’s two main buildings is taken into account, in line with the certified
environmental management system.
The environmental management system determines the functions and responsibilities in the area of
environmental risk prevention, led by the General Services and Assets area, without these resources
being dissociated from the rest of the functions they perform.
In 2021, the return of employees to a higher level of attendance led to an increase in electricity
consumption. In 2023, the moderation in electricity consumption that began in 2022 continued, so that
electricity consumption in 2023 was lower than in 2020, in contrast to 2021 and 2022. All energy
consumption comes from electricity consumption. As a measure to promote sustainable mobility
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
104
through the use of electric vehicles as opposed to fossil fuel vehicles, in 2023 ICO maintained 8 electric
vehicle charging points located in the parking spaces made available to ICO employees. These 8
charging points can serve up to 19 vehicles in shifts. For the allocation of the parking spaces, the
criterion of the environmental categorisation of the vehicle is included in the scoring scale.
On the other hand, ICO Group does not have fleet cars, so it does not generate fuel consumption,
except for the fuel used in the generator set , whose consumption is residual as it is only used in the
event of an occasional power cut or for maintenance work.
Water consumption decreased during 2023, compared to 2022 although it remained above the 2020
and 2021 data, due to variations in the degree of personal attendance. All water consumption comes
from the public network of Canal de Isabel II.
Paper consumption in 2023 maintained the downward trend of previous years due to the increased
use of digital formats to the detriment of physical formats in work documentation.
NATURAL
RESOURCE
UNIT
2023
2022
2021
ELECTRICITY
kWh
1,728,122
1,997,767
2,204,474
WATER
m
3
1,697
2,274
1,352
PAPER
kg
3,755
4,229
5,613
4.4.2 CIRCULAR ECONOMY AND WASTE MANAGEMENT
Waste segregation at the plant is one of the objectives defined by ICO Group within its environmental
management system. Since 2021, ICO Group has had environmental islands equipped with
containers for waste segregation. These areas are installed on the office floors. In each of them there
are 3 islets that allow the proper segregation of waste generated in the workplace. These areas have
been completed with containers for the collection of waste related to Covid-19 (masks, gloves, etc.)
installed since 2020 and present until April 2023, when they were removed in accordance with the
measures established at a general level by the health authorities. Due to the activity carried out by the
ICO Group, food waste is not relevant and there are no specific measures in this respect.
Saving measures for the consumption of paper, toner and other materials include the following:
✓ Signature digitisation processes in day-to-day operations
✓ The allocation of laptops to all staff, allowing dual monitors at workstations and reducing the
need for paper documents.
✓ Programming printers to print double-sided by default, and restricting colour printers to
centralised services.
✓ Use of recycled paper in all printers available in each plant.
✓ Printer equipment that incorporates a standby power saving system, which allows for greater
energy efficiency.
The figures for waste managed in 2023 and the two previous years are given below:
MANAGED WASTE
UNIT
2023
2022
2021
Paper and cardboard
Estimated
litres. kg (from
Oct)*
28,800 l
98.60 kg
38.400 l
38.400 l
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
105
Plastic and packaging
Estimated
litres. kg (from
Oct)*
28,800 l
81.10 kg
38.400 l
40.000 l
Organic waste
Kg (estimated)
288
288
288
Toner and ink cartridges
Units
132
99
63
Fluorescent tubes
Units
175
310
305
Batteries
Units
192
384
694
Batteries
Units
6
3
127
*For the consumption of paper and cardboard and plastic and packaging, an estimate is given in litres
from January to September 2023, while from October to December 2023 data is available for the
actual weight in kg, since from October onwards the waste actually generated has been weighed
instead of being estimated on the basis of the number of collections as was done until then.
Data are also provided on the evolution of waste generated per employee (as in the case of total
general waste, this calculation per employee includes, for paper and cardboard and for plastic and
packaging, the estimated calculation per employee up to September and the actual kilos per employee
from October to December), taking the data on employees for ICO Group as a whole presented in the
chapter on Human Resources in this report:
MANAGED WASTE
UNIT
2023
2022
2021
Paper and cardboard
litres per employee
kg empl. (from Oct)
75 l
0.26 kg
109 l
109 l
Plastic and packaging
litres
per employee
kg empl. (from Oct)
75 l
0.21 kg
109 l
113 l
Organic waste
Kgs. Per employee
0.75
0.81
0.82
Toner and ink cartridges
Units per employee
0.34
0.28
0.18
Fluorescent tubes
Units per employee
0.46
0.88
0.86
Batteries
Units per employee
0.50
1.09
1.97
Batteries
Units per employee
0.02
0.01
0.36
In relation to the consumption of paper and cardboard, as well as plastics and packaging, on October
2023, weighing of the waste actually collected has begun, so that the tables presented reflect this
change in the data. For the months between January and September an estimate of the litres of waste
generated is presented based on the number of waste collections and the number of containers, while
from September onwards data can be provided on the kilograms of waste weighed. In relation to other
consumption during 2023, the consumption of toners increased slightly while the downward trend in
fluorescent tubes and batteries continued. In relation to these consumptions, they are largely
conditioned by the placing of orders of different amounts due to the less uniform nature of their
consumption, which has an impact on the figures presented. With regard to the data per employee,
the increase in the number of employees in 2023 has to be taken into account, which influences the
overall decrease in waste per employee during 2023.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
106
4.4.3 POLLUTION. EMISSIONS. INTERNAL CARBON FOOTPRINT
The products and services offered by ICO Group do not in themselves generate greenhouse gas
emissions that seriously affect the environment. In other words, the carbon footprint is that which
comes from the development of its activity (carbon footprint inherent to an organisation).
With regard to pollution, the products and services offered by ICO Group do not generate noise
pollution that could substantially affect the environment. Neither does it generate light pollution that
could substantially affect the environment. Therefore, there are no specific measures in these matters.
The ICO’s scope 1 and 2 emission sources are mainly located in the offices of its only headquarters
in Madrid, located at Paseo del Prado, 4, and in its annex building, Calle los Madrazo 36, 38, so the
emissions generated correspond mainly to electricity consumption, maintenance and recharging of air
conditioning equipment and fuel for a generator set. In addition, the building has an installation of
photovoltaic panels on its roof, but this has not been considered to reduce the calculation of emissions,
as the energy produced is discharged into the electricity grid and is not for self-consumption. In 2023,
this installation produced 5,973 kWh, up from the figure for 2022, which was 2,243 kWh due to a
breakdown of the installations that prevented production for several months of the year. Production in
2023, once the 2022 breakdown had been rectified, was in line with 2021 production (5,830 kWh).
The ICO Museum (Calle Zorrilla 3 - Madrid 28014) hosts different exhibitions, and the management
of this activity and space also generates electricity and refrigerant gas consumption.
In addition, the ICO has a warehouse located in the Gitesa Industrial Estate in Daganzo de Arriba
(Madrid), which serves as logistical support and documentation archive, and which generates
emissions from electricity consumption and refrigerant gases.
Finally, ICO Group does not have a fleet of vehicles, nor does it need one to carry out its activities,
which are mainly carried out at the offices at Paseo del Prado, 4 - 28014 Madrid. However, it does
have a vehicle that Parque Móvil del Estado (State Vehicle Fleet) makes available to the President of
the ICO for his business trips, the management, maintenance and fuel of this vehicle being the
responsibility of Parque Móvil del Estado, and therefore this vehicle has been excluded from the
calculation of ICO’s emissions to avoid double-counting.
Below is an estimate of the total emissions for the year 2023 and their comparison with the year 2022.
All calculations have been made in accordance with the indications published by the Ministry for
Ecological Transition and the Demographic Challenge (MITECO), using the calculator published by
MITECO for scopes 1 and 2.
For 2023, a provisional calculation of the carbon footprint including scopes 1 and 2 has been made.
The calculation is provisional for 2023 as the tools available for 2022 have been used, as discussed
below.
Work is underway to calculate the internal scope (staff travel, urban commuting, etc.), in order to
design and apply a methodology to measure this scope in the best possible way.
EMISSIONS (t CO2e)
2022
2023
Direct emissions (Scope 1)
168.21
94.76
Indirect emissions purchased energy (Scope 2)
542.49
420.44
Total
775.07
515.20
The evolution of emissions (referring to scopes 1 and 2) shows a reduction of the carbon footprint of
33.52% in 2023 compared to the previous year.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
107
This significant reduction is due to the implementation of the measures put in place by ICO Group as
part of its carbon footprint registration process with MITECO. Indeed, ICO Group has a Carbon
Footprint Reduction Plan for the period between 2022 and 2025 that has been submitted to MITECO,
which includes, among other things, ICO’s commitment to contract an electricity supplier with a
Guarantee of Origin for renewable energy, and this measure was effectively implemented in 2023.
One of its objectives was to reduce emissions by at least 20%, which has already been achieved with
the aforementioned Guarantee of Origin contracting. Furthermore, as part of these measures, an
energy efficiency study of the building and a study on low-carbon technologies were carried out in
2023, focusing on the decision-making process for a comprehensive refurbishment of the ICO’s
headquarters. This eventual refurbishment will aim to increase the functionality of the current facilities
as well as their energy efficiency and adaptation to climate change.
On the other hand, the teleworking policies applied by ICO Group linked to energy saving have also
led to lower energy consumption per employee. The tCO2e / ICO Group staff ratio shows a reduction
of 28.72% compared to 2023. A considerable reduction, taking into account the increase in the ICO
Group’s workforce in 2023:
2022
2023
Carbon footprint (t CO2e).
Scopes 1 and 2
775.07
515.20
Footprint per employee
(t CO2e)
2.0190
1.4391
ICO Group’s organisational carbon footprint includes direct and indirect emissions, according to
location and determined emission sources:
Location
Emission sources
Scope 1
Scope2
Paseo de Prado Building, 4 -
28014 Madrid
Air conditioning equipment
Possible
refrigerant gas
recharges
-
Electricity
-
Electricity
consumption
Generating set
Diesel B
-
Los Madrazo Building 36, 38 -
28014 Madrid
Air conditioning equipment
Possible
refrigerant gas
recharges
-
Electricity
-
Electricity
consumption
Generating set
Diesel B
-
ICO Museum -Calle Zorrilla 3 -
28014 Madrid
Air conditioning equipment
Possible
refrigerant gas
recharges
-
Electricity
-
Electricity
consumption
Gitesa Industrial State -
Daganzo de Arriba (Madrid)
Air conditioning equipment
Possible
refrigerant gas
recharges
-
Electricity
-
Electricity
consumption
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
108
ICO has the “Calculation” seal and the “Certificate of Registration of carbon footprint, offsetting and
CO2 absorption projects of the Ministry for Ecological Transition and the Demographic Challenge” for
the years 2018, 2019, 2020, 2021 and 2022, with the final calculation of the HC for 2023 (scope 1 and
2) pending publication of the new emission factors by the MITECO and the CNMC, so this report
presents a provisional calculation that has taken into account the emission factors for 2022.
4.4.4 COMMUNICATION FOR SUSTAINABLE GROWTH
ICO Group’s 2022-2027 strategy focuses on promoting activities that contribute to the transformation
of the Spanish production model, boosting business growth, innovation and digitisation,
internationalisation and environmental, social and governance sustainability.
For the ICO Group, it is a priority to contribute to a model of recovery and sustainable growth in all the
actions it carries out, in line with the guidelines set by the Government in the Recovery, Transformation
and Resilience Plan for the Spanish economy, which reflects the priorities established in the European
Next Generation EU programme and the Multiannual Financial Framework 2021-2027.
Moreover, ICO and Axis, its venture capital subsidiary, are particularly relevant in the second phase
of the Recovery, Transformation and Resilience Plan, approved by the European Commission on
October 2023, as they are entrusted with managing almost 40,000 million Euros in loans to finance
projects for the self-employed, SMEs and companies, paying special attention to those that promote
the green transition and digitalisation.
ICO’s communication policy integrates these strategic objectives as a priority focus of action and
during the year 2023, in addition to the Institute’s usual communication actions, efforts have been
focused on the following:
✓ Strengthen and enhance Axis’ communication and corporate identity, to increase
society’s knowledge of the activity carried out by the entity and support its image as a
benchmark player in the Spanish venture capital sector. To this end, we have carried out
various actions:
✓ Create a corporate identity for the 4 funds managed by AXIS. A logo has been designed
for each of the funds managed by AXIS, aligned with the AXIS logo design. In this way, the 4
funds acquire their own identity but with common elements associated with the AXIS corporate
identity.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
109
✓ Produce an Axis corporate video. The objective of the video is to increase the knowledge
that the business sector, and society as a whole, have about AXIS. The video explains in a
visual and summarised way the
different aspects of its operation. The
video outlines the performance in
public-private collaboration with the
venture capital sector in all areas of
activity, with a special focus on high-
impact, sustainable projects and in
the field of technology through its
four funds. The video has been
produced in both English and
Spanish, has been disseminated on
social networks and has been placed
in a prominent position on the
homepage of the Axis website.
✓ Produce a product video on
Fond-ICO Next Tech. Work has
also been done on the creation of
a specific video on Fond-ICO
Next Tech, highlighting its activity
in promoting high-impact
innovative digital projects and
investment in growth companies
(scale-ups). This video has been
used as support material at
various Fund promotion events,
on the AXIS website and on social
networks.
✓ Renew the architecture and content of the AXIS website. During 2023, work has been
carried out to expand and improve the architecture and content of the AXIS website,
reinforcing and creating specific and more visual content, with the aim of communicating
more effectively the features of the various Axis products.
➢ Enhance ICO’s audiovisual communication. During 2023, the ICO Group’s audiovisual and
digital material was considerably expanded to reinforce the communication of our strategic
objectives and complement the written messages. Various interactive videos and infographics
have been produced for use on the website, social networks, etc.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
110
In this sense, and in line with ICO Group’s commitment to the Financial Education initiative,
two new videos have been produced for use as audiovisual teaching material during student visits
to ICO’s headquarters. These videos explain in a simple and attractive way the different aspects
of ICO’s activity, using a visual and communication code specific to the target group at which they
are aimed: young students.
OTHER COMMUNICATION ACTIONS CARRIED OUT IN 2023
➢ Renewal of ICO’s Institutional Presentation. In order to help maintain the ICO Group’s positive
brand image, the Institutional Presentation has been revamped, updating and modernising its
design and content.
Its collective use by employees will help us to project a homogeneous identity of the Institute,
AXIS and Fundación ICO to the outside world.
The presentation includes all the new features of the Addendum to the Recovery Plan. The
Institutional Presentation is published on the ICO Group’s website, both in Spanish and English,
and also in editable format on the intranet to facilitate its use by employees in all presentations,
conferences and any public event of the ICO Group.
➢ International Advertising Campaign. “ICO GREEN AND
SOCIAL BONDS. Supporting Sustainable Growth in Spain”‘.
The ICO carries out publicity actions in the international arena
with the dual objective of supporting the Institute’s role as an
issuer in the capital markets and reinforcing ICO’s identification
as one of the benchmark players in the development of the
social and green bond market.
The campaign was concentrated in two waves during June and
September 2023. The campaign included on-line and off-line
advertisements in economic magazines, magazines
specialising in the financial sector, with a special focus on
issues dedicated to sustainable financing. In the on-line part,
the ICO’s presence in specialised information terminals and
international economic sites was boosted.
➢ Information seminars. During 2023, ICO participated in 231
workshops and was a speaker on 318 occasions. Participation
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
111
in these conferences was carried out in collaboration with various institutions, sectoral
associations and collaborating agents, covering the entire country.
Of the total number of interventions, the President of ICO participated as a speaker in 63 of them.
Of the remaining 255, in 149 cases (58% of the total) it was women who participated on behalf of
ICO, reaffirming ICO’s commitment to give visibility to female talent in the European Parliament’s
#dóndeEstánellas initiative.
➢ On-line communication channels. One of ICO’s priority objectives in recent years has been to
increase the Institute’s presence in the various online communication channels.
➢ ICO Newsletter. In recent years (in 2023 it continued to be distributed normally), the use of the
electronic newsletter has been consolidated as a channel of communication between ICO and the
self-employed and SMEs to publicise the activity, the main products and financing programmes of
the ICO Group, as well as success stories of our client companies.
It is distributed by e-mail to the ICO’s database (approximately 380,000 contacts), with an average
open rate of around 39.8% and an average click rate of 13%. The newsletter is among the top
10 most visited content/pages on the ICO website.
➢ Newsletter for investors. This quarterly newsletter provides up-to-date information of interest to
investors. This newsletter continued to be published on a regular basis throughout 2023. It is
published in English, posted on the ICO website and sent by email to the ICO’s investor database
(more than 1,500 records).
➢ Social networking.
• X @ICOgob
X (formerly Twitter) has become one of the ICO’s main online channels for publicising its activities.
✓ In 2023, the number of followers of the verified @ICOgob account stood at 7,780, an
increase of 2.14% over the previous year. This growth has been recorded progressively
throughout the year.
✓ Of the total number of publications in 2023, 9 out of 10 were accompanied by graphic or
audiovisual material (photographs, infographics, videos).
✓ The interaction rate stood at 3.91%, 5.11% higher than the previous year.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
112
• ICO YouTube channel
ICO maintains its YouTube channel
active to promote audiovisual
communication of the ICO Group’s
activities. At 2023 closing, this channel
had a total of 254 subscribers and a
total of 62,960 views, with the
publication of a total of 37 videos.
4.4.5 CERTIFICATIONS AND OTHER MENTIONS
As a result of the application of the entire policy structure and management instruments, ICO has
obtained several certifications confirming compliance with the highest standards.
• A certification of its Environmental Management System was obtained in 2021, in accordance
with the requirements of ISO 14001. This certification guarantees to
third parties that ICO follows standards of good practice to help protect
and respect the environment at all levels of its activity. The certification
of the environmental management system is an objective established in
the Environmental Policy of Instituto de Crédito Oficial, and affects the
procedures for identifying and evaluating environmental aspects, the
identification and treatment of environmental risks and opportunities, as
well as the procedures for management, control, monitoring and
evaluation of environmental performance in the development of our
activity. The ICO Group’s Environmental Management System
develops the Environmental Policy, which, in order to guarantee
environmentally friendly action, includes the following commitments, among others:
▪ Identify environmental aspects and control the associated environmental impact.
▪ Identify and assess compliance with legal and other environmental and biodiversity
protection requirements voluntarily subscribed to by ICO (Equator Principles, 10 Global
Compact Principles, Paris Agreement).
▪ Identify and assess the environmental risks and opportunities of its activity and its
products and services.
▪ Measure GHG emissions and carry out prevention, reduction and remediation actions.
▪ To facilitate the segregation and management of the waste generated in its facilities,
and to promote awareness among its professionals so that waste segregation practices
are also applied in their daily lives.
▪ Formalise agreements that promote circular economy practices for the reuse of waste.
▪ Implement tools for environmental protection and pollution prevention.
▪ Promote sustainable and responsible consumption of natural resources, and define
energy efficiency and improvement plans.
Precautionary principle: ICO has implemented an environmental management system that
complies with the requirements of ISO 14001. This management system is certified by European
Quality Assurance (EQA). The control and monitoring of the management system is the
responsibility of the general services and assets unit, which is equipped with the necessary
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
113
resources to carry out this function. As the environmental impact is not significant, there is no
specific provision or guarantee in the income and expenditure budget to cover environmental
damage.
• On April 2022, a certification was obtained that its quality
management system complies with the requirements established in the
ISO 9001:2015 international standard. The quality management system
applies to the development of all activities carried out by the ICO, both
management and support, in its triple role as National Promotion Bank,
Financial Instrument for Economic Policy and State Financial Agency.
The international ISO 9001 standard regulates the quality process in all
areas of development, implementation and improvement, and is
consistent with the ICO’s Quality Policy. This certification, also issued
by EQA, demonstrates to stakeholders ICO’s commitment to quality
and to the procedures established in this ISO 9001 standard.
ICO International Channel Line distinguished with the ALIDE 2023 Award
On June 2023, the ICO International Channel Line was distinguished with the ALIDE 2023 Award
in the “Extra-regional Banks” category. This award recognises best practices in development
financial institutions, including the contribution of the Instituto de Crédito (ICO) in the
internationalisation process of companies through the financing and support of their activities.
The award received by the Institute highlights one of the
financial instruments specialised in internationalisation
included in the ICO product catalogue: the ICO International
Channel Line, a benchmark in the promotion of
international investment and foreign trade activity of
Spanish and Latin American companies, with Spain’s
position as a window of entry between Europe and Latin
America and the Caribbean being relevant.
The International Channel line has promoted projects
with the participation of Spanish companies that
improve people’s quality of life in collaboration with
multilateral and development banks in LATAM. Some of
the sustainable projects financed include the agreement
between ICO and FONPLATA to expand and modify two
wastewater treatment plants in Uruguay; the construction of
several wind farms in Brazil, under the Institute’s agreement
with BNDES; the construction of the Nicaraguan hospitals of
Bilwi and Chinandega thanks to the agreement signed
between ICO and CABEI; and the construction of the first metro line in Quito (Ecuador), following
the agreement reached between ICO and CAF.
• As mentioned in chapter 2, ICO Group plays a very important role in the management of various
instruments within the framework of the European Union. Much of this activity is done thanks to
the accreditation obtained by ICO in 2020 as Implementing Partner of the European
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
114
Commission for the management of European programmes, in particular InvestEU. This
accreditation followed a comprehensive review of ICO’s policies, processes and actions in the 9
pillars defined by the European Commission (Pillar Assessment), which include aspects such as
internal control, accounting, external audit, management of financial instruments, procurement
procedures, data protection or exclusions from funding, among others. This examination was
passed by ICO in its entirety, which on the one hand allows the management of European funds
and guarantees and on the other hand demonstrates that it complies with EU management
standards.
• There are also extra-financial ratings by specialised and independent rating agencies that
categorise ICO’s ESG performance and risk and whose ratings can be found at:
https://www.ico.es/web/guest/sustainability/evaluacion-divulgacion-y-trasnparencia
• ICO is also certified as a Family-Responsible Company (EFR) by the Másfamilia Foundation.
This EFR certificate demonstrates the ICO Group’s firm commitment to advancing in the area of
work-life balance to improve the quality of life of its employees, and it is one of the first companies
in the public sector to hold this certificate. In order to obtain the certificate, a thorough process of
diagnosis and external audit was carried out to accredit the implementation of processes that
promote quality employment, equal opportunities or cohesion between family and professional life,
based on the legislation in force. This certification is also subject to periodic review, the last
renewal having taken place on December 2022, valid until 2025.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
115
5 HUMAN TEAM AND DIVERSITY MANAGEMENT
ICO Group’s most important asset is its human and intellectual capital, committed professionals who
drive the organisation every day towards the achievement of its mission in an atmosphere of
collaboration and trust.
In its relationship with the professionals who make up the organisation, ICO Group is committed to:
• The Universal Declaration of Human Rights and the International Labour Organisation’s
Declaration on Fundamental Principles and Rights at Work.
• Freedom of association and effective recognition of the right to collective bargaining.
• Equal treatment and opportunities for men and women and the fight against all forms of
discrimination.
• The reconciliation of work, family and personal life.
• Professional development and training.
• Health and safety at work.
• Reconciling professional activity with respect for the environment.
• The social and labour inclusion of groups with functional diversity.
• Corporate volunteering, developed through collaboration agreements with social entities.
These commitments made to its staff are set out in the Sustainability Policy approved in 2020 and
renewed by the ICO Council on January 2024, and are embodied in the personnel policies and
procedures and in the actions carried out in each area.
ICO also guarantees its observance of equality between women and men through the 2
nd
Equality
Plan, negotiated with its Works Committee, which incorporates more than 45 measures and certifies
its commitment to the welfare of its employees through the Family-Responsible Company seal
awarded by the Masfamilia Foundation since 2014. The milestones for 2023 include the approval of
a formal policy on Safety, Health and Wellbeing at work, as well as the approval of the Digital
Disconnection Policy, which consolidates the process of implementing teleworking as a service
provision method and enables progress in efficiency, flexibility and contributes to creating an optimal
working environment while favouring a work-life balance.
Throughout this section, we explore how these core values have been integrated into our corporate
culture, contributing to the well-being of our employees and progress towards a more equitable and
sustainable future.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
116
5.1 PAYROLL INFORMATION
Distribution of ICO Group staff by age, gender and professional groups.
At 2023 closing, the Group’s staff numbered 396, an increase of 28 compared to the previous year.
Of these, 93% work at ICO , 5% at AXIS and 2% at the Fundación ICO . The distribution by age,
professional group and gender is as follows:
ICO GROUP
31/12/2023
31/12/2022
Under 30
years
old
Between
30 and
50 years
old
Over 50
years
old
TOTAL
Under 30
years old
Between
30 and
50 years
old
Over 50
years
old
TOTAL
Senior
Management
5
11
16
5
13
18
Women
4
3
7
4
3
7
Men
1
8
9
1
10
11
Middle
Management
31
28
59
35
23
58
Women
20
13
33
24
8
32
Men
11
15
26
11
15
26
Technical Staff
40
113
110
263
18
110
103
231
Women
21
70
66
157
9
67
62
138
Men
19
43
44
106
9
43
41
93
Administrative
staff
8
50
58
14
43
57
Women
7
45
52
13
38
51
Men
1
5
6
1
5
6
TOTAL GROUP
ICO
40
157
199
396
18
164
182
364
Total Women
21
101
127
249
9
108
111
228
Total Men
19
56
72
147
9
56
71
136
In terms of annual average, the number of staff rose to 384 in 2023, compared to 352 in 2022.
In line with the Universal Declaration of Human Rights and the International Labour Organisation’s
Declaration on Fundamental Principles and Rights at Work, as well as national and international
standards, ICO Group does not employ any underage employees.
In addition, ICO Group had the support of an average of 10 young university students participating in
the SEPI Foundation’s practical training scholarship programme. 100% were under 30 years of age
and 50% were women. This number has decreased by 18 young people compared to 2022. In
addition, the Fundación ICO has one person who has a Museography grant, this year 2023 as in 2022.
The high specialisation of the products and services offered by ICO Group institutions is reflected in
the distribution of the workforce by professional group. Thus, 66% of the workforce is included in the
professional group of Technicians, 3 percentage points more than in 2022.
With regard to the distribution of the workforce by age, the majority of employees are in the “Over 50”
age bracket, with 50% of the total. This is due to the fact that ICO Group is a consolidated institution
that offers its employees a stable working environment and conditions, which means that 36% of the
workforce has more than 25 years’ seniority.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
117
Given the nature of ICO as a national Public Business Entity, 100% of our staff carry out their
professional activity in Spain.
In 2023, there has been an increase of 22 people over the previous year in the group of technicians
under 30 years of age, with the consequent gradual rejuvenation of the workforce and promotion of
youth employment. ICO Group also participates in initiatives described in sections 5.9 and 5.10 to
facilitate access to employment for young people.
ICO Group staff additions and departures
Staff additions and departures have been the following:
ICO Group 2023
TOTAL
Under 30
years old
Between
30 and 50
years old
Over 50
years old
Men
Women
NO. OF
DISCHARGES
68
35
28
5
33
35
CONTRACTING
RATE
17.2%
87.5%
17.8%
2.5%
17.6%
14.1%
NO. LEAVES
34
6
21
7
20
14
ROTATION RATE
8.6%
15.0%
13.4%
3.5%
10.7%
5.6%
ICO Group 2022
TOTAL
Under 30
years old
Between
30 and 50
years old
Over 50
years old
Men
Women
NO. OF
DISCHARGES
47
15
32
0
22
25
CONTRACTING
RATE
12.9%
83.3%
19.5%
0.0%
16.2%
11.0%
NO. LEAVES
34
4
24
6
18
16
ROTATION RATE
9.3%
22.2%
14.6%
3.3%
13.2%
7.0%
The hiring rate is the number of new hires compared to the total number of staff at year-end for each
category and the turnover rate is the number of departures compared to the total number of staff at year-
end for each category.
Among the departures in 2023, the most common cause is leave of absence (50%) granted to
employees to take up other jobs in the public sector. In 2023 and 2022, there were no departures due
to dismissal.
Employees with disabilities
There are 5 persons with recognised disabilities (functional diversity/physical disability) in the
workforce at December 31, 2023, all of whom are women. In 2022 there were also 5 persons, 80% of
whom were women.
In addition, ICO has signed an agreement with the A LA PAR Foundation through which 1 person with
a disability completed their studies by doing work experience at ICO during 2023, (one less than in
2022).
Also, since November 2021, ICO has been authorised by the Regional Ministry of Economy, Finance
and Employment of the Community of Madrid to comply with the disability quota on an exceptional
basis by adopting alternative measures by contracting with Special Employment Centres to provide
certain services. During 2023, 6 contracts were maintained with these centres. The services
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
118
associated with these contracts are provided by 13 people with disabilities working at the ICO Group’s
headquarters, of whom 5 are women and 8 men, compared to 8 women and 8 men in 2022.
5.2 CONTRACT MODALITIES
Total number and distribution of types of employment contracts. Average annual number of
permanent, temporary and part-time contracts by gender, age and occupational classification.
In 2023, 93% of the ICO Group’s workforce had permanent contracts (356 people), the same
percentage as the previous year, proving once again that ICO provides stability to its employees. In
the case of temporary jobs (5%), these were for very specific reasons: to cover temporary disability
leave, maternity/paternity leave, relief contracts associated with partial retirements and vacancies until
they are filled indefinitely through a public job offer. Staff working part-time due to retirement represent
2%.
ICO GROUP
AVERAGE 2023
AVERAGE 2022
Under 30
years old
Between
30 and 50
years old
Over 50
years old
Under 30
years old
Between 30
and 50
years old
Over 50
years old
INDEFINITE
16.8
146.4
192.4
9.3
145.1
171.8
Women
8.3
93.1
121.5
5.3
95.5
103.7
Men
8.6
53.3
70.9
4.0
49.6
68.2
Senior Management
-
5.1
12.8
-
5.0
12.3
Women
-
4.0
3.0
-
3.3
3.0
Men
-
1.1
9.8
-
1.7
9.3
Middle Management
-
29.3
28.8
-
32.2
24.5
Women
-
19.1
13.0
-
21.8
8.3
Men
-
10.3
15.8
-
10.3
16.2
Technical Staff
16.8
106.8
104.4
9.3
97.8
99.3
Women
8.3
65.8
64.1
5.3
61.2
61.4
Men
8.6
41.0
40.3
4.0
36.6
37.9
Administrative staff
-
5.3
46.4
-
10.2
35.7
Women
-
4.3
41.4
-
9.2
30.9
Men
-
1.0
5.0
-
1.0
4.8
PART-TIME
-
-
8.2
-
-
8.6
Women
-
-
5.2
-
-
4.7
Men
-
-
3.0
-
-
3.9
Technical Staff
-
-
4.9
-
-
3.9
Women
-
-
1.9
-
-
2.9
Men
-
-
3.0
-
-
3.7
Administrative staff
-
-
3.3
-
-
3.3
Women
-
-
3.3
-
-
1.8
Men
-
-
0.0
-
-
0.3
TEMPORARY
10.7
8.9
1.30
2.2
11.1
3.4
Women
5.2
6.1
1.10
1.6
9.4
2.7
Men
5.5
2.8
0.2
0.6
1.7
0.8
Technical Staff
10.7
6.6
0.2
2.2
7.8
1.3
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
119
Women
5.2
3.8
0.0
1.6
6.1
0.6
Men
5.5
2.8
0.2
0.6
1.7
0.8
Administrative staff
-
2.3
1.1
-
3.3
2.1
Women
-
2.3
1.1
-
3.3
2.1
Men
-
-
-
-
-
-
5.3 AVERAGE REMUNERATIONS AND SALARY GAP
A. AVERAGE SALARIES
Average earnings and their evolution by gender, age and occupational classification.
The calculation of this data takes into account the total remuneration (salary, in kind and non-wage)
of the workforce as at December 31, 2023, annualised, to avoid deviations due to the date of
incorporation, including the variable remuneration for meeting objectives regardless of its accrual, and
is broken down by professional group, age and gender.
GENERAL METRICS
2023
2022
(EUROS)
Salary expenditure ICO
18,656,521
17,540,886
Average ICO remuneration
53,304
52,205
ICO median remuneration
48,007
47,649
Minimum wage
15,120
14,000
In 2023, monetary remuneration was increased by 3.5% for management and middle management,
and by 3.7% for the wage bill of the employees covered by the collective labour agreement, in
accordance with current regulations. On the other hand, in accordance with current budgetary
regulations, the increases do not affect remuneration in kind or non-wage remuneration. In any case,
the process of setting remuneration is subject to the applicable budgetary regulations.
Both the figures for 2022 and 2023 take into account base salary, variable salary and salary and fringe
benefits.
In overall terms, the change in the average remuneration of ICO employees as a whole has been
influenced by the incorporation of newly created posts as envisaged in the new Strategic Plan 2022-
2027, whose entry, in accordance with the collective bargaining agreement, is generally through the
lower levels of each professional group. The median, as the average value of the set of remuneration
ordered from lowest to highest, is in turn influenced not only by the new incorporations to newly created
posts (as in the average), but also by the incorporations derived from the filling of posts generated by
the replacement of departures or retirements from the previous year, given that, like the newly created
posts, in general, they are also covered by the entry remuneration levels of each professional group.
AVERAGE ICO REMUNERATION
(EUROS)
2023
2022
%
growth
WOMEN
MEN
DIFFERENCE
(Women
compared to
average)
2023
2023
Average remuneration of
senior management
101,434
98,150
3.4%
101,275
101,592
-0.2%
Average remuneration Head
of Department
88,423
85,755
3.1%
88,377
88,450
-0.1%
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
120
Average remuneration Head
of Area
70,903
68,561
3.4%
70,068
72,016
-1.2%
Average remuneration ICO
Technical staff
49,810
48,846
2.0%
51,118
47,890
2.6%
Average remuneration ICO
Administrative staff
38,831
38,129
1.8%
38,824
38,900
0.0%
Note1: For the calculation, the salary expenditure of the President and Senior Management has not been taken into
account as this information can be found in section 1.3. Governance and Management Structure. Neither are the training
contracts of the First Experience in Administration Programme, which are financed by their specific programme and are
governed by their own regulations.
Note 2: The amounts include variable remuneration linked to the achievement of objectives paid in each financial year,
remuneration in kind and non-wage remuneration.
Note 3: In all cases the individual increase in monetary remuneration has been at least 3.5% authorised by the LPGE
2023, applied to all remuneration items except for remuneration in kind and non-wage remuneration. However, the %
variation in average remuneration is influenced by the incorporation of staff to newly created posts, which have always
occurred at entry levels.
MINIMUM ANNUALISED ICO
REMUNERATION BY OCCUPATIONAL
GROUP (EUROS)
2023
2022
% growth
Entry level Technicians
38,909
37,804
2.9%
Entry level Administrative
26,868
26,102
2.9%
Note: The calculation takes into account the remuneration received by all employees, including the minimum
variable remuneration subject to meeting targets.
ICO
AVERAGE 2023
Average ICO
Under 30
years old
Between 30
and 50 years
old
Over 50
years old
Senior Management
101,434
-
101,157
101,618
Women
101,275
-
100,943
101,773
Men
101,592
-
101,799
101,541
GRI INDICATORS:
• The President’s salary is 3.2 times the median salary of the rest of the organisation.
• The remuneration increase for the president in 2023 was identical to that of all employees.
• The ratio between the minimum annualised entry level pay and the average pay is (for managers
and executives the technical group is used as a reference):
▪ 145% for women and 145% for men in administrative groups
▪ 131% for women and 123% for men in technical groups
▪ 180% for women and 185% for men in area headships
▪ 227% for women and 227% for men in heads of departments
▪ 260% for women and 261% for men in managerial positions
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
121
Department Heads
88,423
-
88,377
88,450
Women
88,377
-
87,982
89,561
Men
88,450
-
89,560
88,265
Area Heads
70,903
-
68,559
75,122
Women
70,068
-
67,095
76,013
Men
72,016
-
70,687
74,104
Technical Staff
49,810
35,154
43,301
60,027
Women
51,118
35,431
44,471
61,856
Men
47,890
34,822
41,436
57,457
Administrative staff
38,831
-
30,744
40,207
Women
38,824
-
31,007
40,096
Men
38,900
-
28,905
41,398
TOTAL ICO
53,304
35,154
49,836
58,569
The average remuneration of the groups reflected in this table in 2023 was 53,304 Euros.
Comparatively, this is 3.5 times higher than the Spanish Minimum Interprofessional Wage, which is
15,120 Euros in 2023.
The average remuneration of the Foundation in 2023 was 41,367 Euros, and that of AXIS was 58,481
Euros. These figures were 40,086.16 Euros and 61,227.93 Euros in 2022, respectively. The difference
in the average salary in the Axis workforce is due to an increase in junior profiles. A breakdown is
provided for AXIS in 2023, but no breakdown is provided for the Foundation due to its small size, in
accordance with data protection regulations.
AXIS
Year
2023
AXIS
Year 2023
AXIS
Year 2023
Senior Management
117,237
Men
62,629
Under 30s
22,189
Intermediate Command
90,273
Women
60,768
Between 30 and 50
years old
51,710
Technical Staff
40,351
Over 50 years old
83,667
Administrative staff
38,692
B. SALARY GAP
From the analysis of the salary record data, it can be concluded that there are no significant salary
differences between men and women at ICO.
In compliance with the provisions of art. 28.2 of the Workers’ Statute and Royal Decree 902/2020, of
13 October, on equal pay for men and women, and in line with the commitments made in the 2
nd
Equality Plan, the ICO has drawn up a salary register at the end of 2023.
This wage register makes it possible to analyse the wage gap between women and men and thus
determine whether there is a gender pay gap.
The concept of positions of equal value is reflected in the calculation of the pay gap, which compares
the total remuneration received by men and women in positions of equal value at ICO. For this
purpose, staff subject to collective bargaining agreements have been classified according to
professional group and salary level, following the job structure agreed with the legal representation of
workers. With regard to staff excluded from the scope of application of the collective agreement, a
distinction was made between middle management, area manager and department manager posts.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
122
Likewise, a comparison has been made of the salaries of management staff (Management, General
Management and President’s Office).
For each of the above positions, the median of the total pay received by all men and women in these
positions is calculated. The pay gap for the job is calculated as the percentage by dividing the
difference of the median pay for men minus the median pay for women by the median pay for men.
The total pay gap is the weighted average of the pay gaps for each job.
At December 31, 2023, the ICO pay gap for positions of equal value is -1.7%.
The regulations governing the remuneration policy for management and middle management
positions are set by the Ministry of Finance and guarantee equal pay for men and women. Likewise,
the collective agreement establishes pay levels for staff covered by the agreement (belonging to the
professional groups of Technicians and Administrative staff) that guarantee equal pay for people with
the same pay level. The promotion of pay levels is linked to performance appraisal.
5.4 WORK ORGANISATION
Working time arrangements
The collective bargaining agreement determines the working day and hours of staff, who may choose
between continuous or split working hours, in accordance with the terms of the agreement itself.
In 2023, the average number of ICO Group employees working split working day regime was 363.4
(94.6% of the group’s total). 0.78% of the Group worked a continuous working day and 4.73% worked
a reduced working day due to reasons of conciliation for partial retirement, relief contract, and/or care
of ascendants or descendants.
AVERAGE 2023
AVERAGE 2022
ICO GROUP
Under 30
years old
Between
30 and 50
years old
Over 50
years old
Under 30
years old
Between 30
and 50
years old
Over 50
years old
SPLIT
27.5
146.8
189.1
11.3
142.8
169.9
Women
13.4
91.8
120.3
6.8
92.5
103.0
Men
14.1
55.1
68.8
4.5
50.3
66.9
Senior Management
-
5.0
10.9
-
5.0
12.3
Women
-
4.0
3.0
-
3.3
3.0
Men
-
1.0
7.9
-
1.7
9.3
Middle Management
-
27.3
23.8
-
32.2
24.5
Women
-
17.1
9.0
-
21.8
8.3
Men
-
10.3
14.8
-
10.3
16.2
Technical Staff
27.5
96.9
96.3
11.3
94.1
96.5
Women
13.4
57.1
59.1
6.8
55.8
59.8
Men
14.1
39.8
37.2
4.5
37.3
36.7
Administrative staff
-
6.6
43.2
-
12.5
36.6
Women
-
5.6
39.2
-
11.5
31.8
Men
-
1.0
4.0
-
1.0
4.8
CONTINUED
-
-
3.0
-
-
3.0
Women
-
-
1.0
-
-
1.0
Men
-
-
2.0
-
-
2.0
Technical Staff
-
-
3.0
-
-
3.0
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
123
Women
-
-
1.0
-
-
1.0
Men
-
-
2.0
-
-
2.0
Administrative staff
-
-
-
-
-
-
Women
-
-
-
-
-
-
Men
-
-
-
-
-
-
REDUCED
-
8.4
9.8
-
13.4
8.9
Women
-
0.0
0.0
-
12.4
4.3
Men
-
0.0
0.0
-
1.0
4.6
Technical Staff
-
7.4
5.2
-
11.4
3.9
Women
-
6.4
1.9
-
11.4
0.3
Men
-
1.0
3.3
-
1.0
3.7
Administrative staff
-
1.0
16.5
-
1.0
5.0
Women
-
1.0
16.5
-
1.0
4.1
Men
-
0.0
0.0
-
-
0.9
Teleworking has proven to be a key tool in the modernisation and flexibility of work management. For
its effective operation, ICO Group is subject to the rules and regulations that govern it in the State
Administration. In 2023, ICO Group continues with its Remote Work Plan implemented in 2022 within
the framework of energy saving and efficiency measures for the General State Administration and
state public sector entities approved by the Council of Ministers Agreement of May 24, 2022. Under
this system, after accrediting compliance with the targets set for 2022, ICO Group resolved to
implement the maximum regime of up to three days of remote working, as opposed to the maximum
of two days allowed in 2022.
At December 31, 2023, 383 employees had joined, of whom 36.1% were men and 63.9% women, or
84.5% of the total staff, an increase of 58 people over the previous year at ICO.
Employees who are members of the Remote Work Plan
No. of
applications
Total number
of employees
(31/12/23)
%
applications
ICO
361
369
97.8%
AXIS
17
20
85%
FUNDACIÓN ICO
5
7
71%
TOTAL GROUP ICO
383
396
84.5%
5.5 WORK-LIFE BALANCE
Measures aimed at facilitating the enjoyment of work-life balance and encouraging the co-
responsible exercise of these measures by parents
The Institute’s commitment to work-life balance responds to the search for the well-being of the people
who form part of ICO, our main source of value. Work-life balance seeks to balance the achievement
of work and private life objectives through flexible formulas that allow for the development and success
of both. Therefore, it is not just about paid leave. It is a way of organising the working environment
that makes it easier for men and women to carry out their work, personal and family responsibilities.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
124
ICO has been certified as a Family-Responsible Company by Fundación Másfamilia since December
2014, in accordance with the efr 1000-1 standard, a certification that was renewed on December 2022
for an additional period of 3 years, until 2025. This management and work organisation model provides
a simple and effective work-life balance methodology and enables progress to be made in the
implementation of a social, work and business culture based on flexibility, respect and mutual
commitment. In order to effectively implement this model, ICO has an efr Model Work-Life Balance
and Equality Management Procedure.
As a driver of well-being and in response to the commitment of the people who make up the
organisation, ICO’s management model aims to:
• Contribute through its policies to the elimination of barriers that hinder the participation of
women and men in their personal lives and in the company’s processes.
• To promote a working environment that is compatible with personal development, allowing its
professionals to balance the fulfilment of their work responsibilities in a public institution such
as the ICO with the needs of their personal and family life.
Below there is a breakdown of the work-life balance measures related to reduced working hours
adopted by ICO Group employees in 2023 and 2022 (average figure).
ICO GROUP
AVERAGE 2023
AVERAGE 2022
Under 30
years old
Between
30 and 50
years old
Over 50
years old
Under 30
years old
Between
30 and 50
years old
Over 50
years old
Upstream care
1.00
1.0
Administrative staff
1.00
1.0
Women
1.00
1.0
Offspring care
10.42
0.08
12.4
Administrative staff
1.00
0.08
1.0
Women
1.00
0.08
1.0
Technical Staff
9.42
11.4
Women
8.42
11.4
Men
1.00
1.0
Partial retirement
8.67
7.9
Administrative staff
3.50
4.0
Women
3.50
3.1
Men
0.00
1.3
Technical Staff
4.50
3.9
Women
1.25
1.0
Men
3.25
3.7
Note: Data from ICO and Axis, as there is no person with a reduction in the Foundation.
To guarantee and ensure proper compliance with the values and principles that underpin ICO’s
commitment to conciliation, an external communication channel has been set up so that ICO staff, as
an entity certified under the efr model, can express their complaints and claims regarding conciliation
directly to the Fundación Másfamilia. The latter guarantees the absolute confidentiality of the
information received through this channel. In 2023, the Fundación Másfamilia did not receive any
claims or complaints through this channel, as it did in 2022.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
125
ICO has 90 work-life balance measures divided into 8 blocks, 67 of which provide an improvement
over current legislation and are therefore considered work-life balance measures of the family-friendly
company (efr) certification .
ICO GROUP
Data 2023
Data 2022
Men
Women
Total
Men
Women
Total
Total number of employees entitled to
parental leave
6
6
12
6
8
14
Total number of employees who have taken
parental leave
6
6
12
6
8
14
Total number of employees who have
extended their parental leave with parental
leave in 2023
0
1
1
1
4
5
Return to work rate (employees who
returned to work after parental leave in the
year over total number of those who were
due to return) (%)
100%
100%
100%
100%
100%
100%
No. of employees who returned to work
6/6
5/5
11/11
5/5
7/7
12/12
Retention rate (employees retained 12
months after return over total number of
returnees) (%)
100%
100%
100%
100%
100%
100%
No. of employees retained
5/5
7/7
12/12
7/7
3/3
10/10
ICO also has an ethics channel available to its staff for reporting breaches of its code of conduct and
a Compliance Committee that keeps a record of all reports received through the ethics channel or any
other means that the person making the report considers appropriate. The Compliance Committee
guarantees the confidentiality of the complaints received. In 2023 no complaints were received, during
2022 one complaint was received which was dealt with and resolved in accordance with the
procedure.
In 2023, the Group updated the Ethics Channel to comply with the requirements of Law 2/2023 of 20
February, which regulates the protection of persons who report breaches of regulations and the fight
against corruption. With these adaptations, the internal reporting channel makes it possible to report,
even anonymously, facts that may involve a serious criminal or administrative offence or a breach of
EU law, and may be used both by ICO Group employees and by third parties who may be aware of
unethical, fraudulent or unlawful conduct within the ICO Group. The law, as well as the Code of Ethics,
guarantees that there will be no retaliation against those who use the Ethics Channel in relation to
reports of breaches of the internal rules of conduct and conduct that may constitute a criminal or
administrative offence. The Works Council was informed of the establishment of this new internal
information channel, which is accessible through the external website of the ICO, AXIS and the
Foundation.
Implementing digital disconnection policies in the workplace
In the remote work plan approved in ICO Group in 2022, the right to digital disconnection outside
working hours is recognised in accordance with article 88 of Organic Law 3/2018 of 5 December on
the Protection of Personal Data and Guarantee of Digital Rights. Following the implementation of the
remote working regime, in 2023 the digital disconnection policy was created and approved and
announced on the intranet, including the principles of action and a decalogue of good practices for
better management of working time and respect for rest time.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
126
5.6 SECURITY AND HEALTH
According to the World Health Organisation (WHO), a healthy company is one where management
and employees work together to develop continuous improvement processes to protect and promote
occupational health, safety and well-being.
In this sense, ICO Group understands that a healthy organisation is one that, understanding the
importance of health for the proper functioning of its activity, makes systematic, planned and proactive
efforts to improve the organisation and design of workplaces, operational processes and the strategy
of work-life balance, health and safety at work. In this way, employee wellbeing is positioned as a
strategic element of strength, essential for the achievement of company objectives.
This is reflected in the Safety, Health and Wellbeing Policy approved by ICO Group in 2023, which
develops the commitments established at the highest level in the Sustainability Policy, which includes
occupational health and safety as a commitment to employees.
The ICO Group’s Health, Safety and Wellbeing Policy defines ICO’s general principles in this area,
taking as a reference the recognition of good practices established by international guidelines (WHO),
the EU’s strategic framework for health and safety at work 2021-2027 and the Spanish Strategy for
Health and Safety at Work 2023-2027, as well as the Sustainable Development Goals, specifically
SDG 3, referring to health and well-being, with the aim of ensuring the health, safety and well-being
of ICO professionals, promoting healthy lifestyles and creating long-term value, both for employees
and their families, as well as for society in general.
The policy develops the ICO Group’s corporate action principles on human resources, aligning ICO’s
concern for the health and well-being of its employees with the EU Strategic Framework for Health
and Safety at Work 2021-2027 and its three main axes:
• Anticipate and manage the shift to new jobs and occupations resulting from the ecological,
digital and demographic transitions.
• Improve the prevention of accidents and illnesses in the workplace.
• Increase preparedness for possible future health crises.
Furthermore, ICO Group understands that it is the responsibility of everyone, staff, employees and
management, to contribute to building and maintaining an environment of health, safety and well-
being. Accordingly, the Health, Safety and Wellbeing Policy sets out the following general objectives:
✓ To achieve a healthy working environment and well-being that allows employees to carry out
their work in the best physical, psychological and social conditions, promoting the participation
of its employees and worker representation through the channels provided.
✓ To achieve an optimal level of occupational safety beyond mere compliance with occupational
risk prevention regulations.
The management of health and safety in the workplace affects 100% of the workforce, and is
developed through two main lines of action: (A) technical prevention referring to the specialities of
occupational safety, industrial hygiene, ergonomics and applied psycho-sociology, which includes
occupational risk assessments, action plans to eliminate or minimise the risks detected, monitoring
the implementation of action plans, the preparation and implementation of emergency and evacuation
plans, health and safety training and the coordination of preventive activities; and B) occupational
medicine, with the performance of medical examinations of personnel, the protection of particularly
sensitive employees and the adaptation of work stations with specific ergonomic material, as well as
programming preventive activities and campaigns with the aim of maintaining and improving the health
of workers and promoting the development of both a preventive culture and healthy habits among the
workforce.
During 2023, the prevention service was carried out with the collaboration of two companies: the MPE
Group during the first half of the year and the Preving Group during the second half. Since June 2023,
we have unified the external prevention service for the entire Group. There is a procedure for the
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
127
coordination of business activities in compliance with R.D. 171/2004, which details the functions and
measures to be adopted in the relationship with companies for the prevention of occupational risks.
Control of health and safety at work is the responsibility of the Health and Safety Committee, made
up of 3 representatives from the Company and 3 from the Workers’ Legal Representation, and by the
Medical Service (company doctor) and the External Prevention Service (prevention technician). The
Health and Safety Committee meets quarterly. In 2023, 4 meetings were held, recorded in minutes,
which dealt with issues related to the appointment of alarm and evacuation teams and first intervention
teams, training in occupational risk prevention for office staff (including teleworking) and accidents at
work. This body participates in the elaboration, implementation and evaluation of risk prevention plans
and programmes in the company. No major injury risks have been identified and no such events have
occurred. Workers can report any risks or incidents directly to HR or through union representatives.
In 2023, 208 medical examinations were performed in the ICO Group, representing 54% of the
Group’s average workforce. This represents an increase of 15 check-ups compared to the previous
year. In addition, a course entitled “prevention of occupational risks for office staff” was given to 64
people and “a practical course on fire prevention and handling fire extinguishers” was given to 17
people, all of them from ICO.
On the other hand, as part of its commitment to the health of its employees, ICO Group has a medical
service available to all its employees at the work centre, from Monday to Friday mornings, for medical,
nursing and physiotherapy consultations. The health service for the medical care of ICO staff is
authorised by the Health Department of the Community of Madrid. This measure promotes health
care, conciliation, flexibility and the reduction of absenteeism by facilitating medical consultation and
assistance for ICO staff in the workplace.
During the year 2023, 760 assistances have been provided, which means an average of 63
assistances per month, 29% to men and 71% to women. Of the assistances, 51% were provided by
the medical professional, 36% by the nursing professional and 13% by the physiotherapist. An
average of 51 workers per month have been assisted. By type of assistance, 69.9% was due to
common illness, 0.2% to non-occupational accidents and the remaining 29.9% to health campaigns.
During the year 2022, 1,565 assistances have been provided, which means an average of 130
assistances per month, 32% to men and 68% to women. Forty-eight percent of the assistance was
provided by medical professionals, 42% by nurses and 10% by physiotherapists. An average of 82
workers per month have been assisted. By type of assistance, 84% was due to common illness, 1%
to non-occupational accidents and the remaining 15% to health campaigns.
Two health campaigns were carried out in 2023, one for seasonal flu vaccination and the other for
health promotion to prevent cardiovascular risk. These campaigns, aimed at the entire workforce,
benefited 117 professionals and 66, respectively.
In addition, ICO collaborates annually in the blood donation campaign promoted by the Red Cross. In
2023, two campaigns were held, one on March with 41 donors and another on September with 34, a
total of 75 volunteers who were able to donate blood at the work centre. This contributed to improving
the lives of 225 people, as each donation saves 3 lives.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
128
Sick leave and absenteeism
On the other hand, 4,383 days of sick leave were recorded, 82.2% for common illness, 15.6% for
maternity or paternity and 1.6% for accidents.
In addition, there were 2 occupational accidents, 1 of which was in itinere, both involving women, with
medical leave. Due to the nature of the ICO Group’s activities, there is no risk of occupational illnesses
as defined in current legislation, as assessed by the prevention service.
The number of absence hours recorded in 2023 was 32,173 (in 2022 it was 26,442), bringing the
absence rate at ICO to 4%. This is a decrease from 5% in 2022.
ICO
2023
2022
Total
Men
Women
Total
Men
Women
Number of days off work
4,383
1,642
2,741
4,368
1345
3023
Number of absence hours
32,173
10,140
22,033
26,442
5,899
20,543
Number of total occupational
accidents
2
0
2
6
1
5
Number of occupational
accidents in itinere
1
0
1
6
1
5
Number of occupational
accidents requiring time off
work
2
0
2
2
0
2
Frequency rate (%)
3.31
0
3.31
0
0
0
Incidence rate (%)
0.56
0
0.56
0.62
0
0.62
Severity rate (%)
0.32
0
0.32
0.24
0
0.24
Absenteeism rate (%)
4
3.75
4.71
5
3
6
Note: Frequency rate = number of lost time accidents per million hours worked.
Severity rate = number of days lost out of 1 million hours worked
The frequency rate does not include accidents on the way to and from work. The calculation is based on one million hours.
At AXIS and Fundación ICO, there were no occupational accidents or occupational diseases in 2023.
Health certifications
During 2023, ICO has been preparing intensively for the ISO45001 Occupational Health and Safety
certification, which it expects to obtain during 2024 and thus integrate all ISOs obtained into a single
Management System.
5.7 SOCIAL RELATIONS
Organisation of social dialogue
In line with Principle 3 of the Global Compact, ICO respects the right of its staff to join trade unions
according to their needs and to form their Works Council.
At ICO, the Works Council acts as a collegiate body representing the workers and interacts with the
company through its autonomous functioning, and through its participation in different committees
(Joint Committee, Health and Safety Committee, Training and Professional Promotion Committee and
Social Affairs Committee), in addition to the working groups and specific negotiating committees that
may be set up to deal with specific issues that may require it.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
129
In order to carry out its functions, the ICO has provided the Works Council with its own physical space
to meet and store documentation, as well as its own e-mail address to receive queries and a space
on the intranet to publish its information.
Procedures for informing, consulting and negotiating with staff through their representatives.
Implementation of the Collective Bargaining Agreement
1) Percentage of employees covered by collective bargaining agreements by country
At present, the VI Collective Bargaining Agreement remains in force, published in the BOCM on
January 11, 2014 (http://w3.bocm.es/boletin/CM_Orden_BOCM/2014/01/11/BOCM-20140111-3.PDF), which
applies only to ICO staff and whose scope of application is the Community of Madrid, where the work
centre is located.
Social benefits are stipulated in the Collective Bargaining Agreement and apply to all staff on equal
terms, and there is no distinction by type of working day.
The Agreement applies to 82% of the ICO staff, excluding the President, the management team and
the professional group of middle managers, whose employment relationship is governed by the terms
of their individual contracts.
2) Review of collective agreements, particularly in the field of occupational health and safety at
work
The ICO Works Council has 13 members. On March 29, 2023, elections to the Works Council were
held, with 71% of the ICO staff participating. As a result, the Committee consisted of 3 different trade
union sections and 13 members. 31% of the Works Council members are women.
During 2023, 8 meetings of the Joint Commission and the Health and Safety Committee were held
and documented in the minutes. In addition, roundtables were set up with employee representatives
to address issues relating to the working conditions of greatest concern to the workforce.
Mechanisms and procedures to promote employee involvement in terms of information,
consultation and participation.
With regard to the existing means of informing staff, the ICO, in addition to sending general and
personalised communications by e-mail, has a channel for announcements, new developments and
news related to the institution’s activity on its intranet. The intranet also contains all applicable internal
regulations, as well as information on training, work-life balance, the works council, institutional and
other activities. All employees are encouraged to participate in the evolution of the institution, either
by commenting on the news published or by making suggestions in the Contribute Your Idea channel.
In addition, the employee portal has been revamped and allows more interaction between the
company and employees for the communication of requests and visibility of training.
In addition, the Presidency holds meetings open to all staff to explain matters of general interest such
as the Strategy, results or the management of European funds. The last meeting of this type was held
on November 2023 to explain the role of the ICO in the management of the European funds of the
Recovery and Resilience Mechanism, giving staff the opportunity to ask questions.
Unit managers maintain a constant open dialogue with employees to receive their concerns, which is
formalised annually through performance appraisal and Management by Objectives interviews, where
impressions, expectations and other work-related issues can be discussed, in addition to the quarterly
monitoring of progress in meeting objectives.
In addition, regular surveys are also conducted, for example on the Group’s material topics or on
satisfaction with work-life balance measures . In the area of training, there is a training coordinator in
each Directorate-General as a point of reference for employees and an interlocutor with HR to convey
the training needs of the teams, and satisfaction surveys are conducted on the training courses given.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
130
5.8 TRAINING
Policies implemented in the field of training
Training and empowering staff is key to contributing to Sustainable Development Goal 8: “Decent
work and economic growth”. ICO Group promotes the improvement of knowledge, skills and abilities
of its human and intellectual capital and, at the same time, in accordance with its mission to promote
the growth and development of the country, it responds to the training needs of other groups, such as
young people and people with intellectual disabilities, to achieve their integration into the labour
market.
This commitment of ICO Group to professional development and training is included in the
Sustainability Policy, and is materialised in the Training Policy and in the Training Plan on which
planned and unplanned training actions are developed annually in response to needs identified
throughout the year.
In 2023, ICO Group has reinforced its demanding level of staff training hours, which has been
increased by 6% compared to 2022. This has increased from 16,083 to 17,022 hours from 2022 to
2023, respectively. The investment has increased by 38%, from 115,052 to 159,121 Euros from 2022
to 2023, respectively.
This commitment to the professional development of ICO’s human and intellectual capital is reflected
in the fact that investment in training represents 1.42% of ICO’s salary expenditure in 2023 compared
to 1.10% of ICO’s salary expenditure in 2022. The same can be seen in the average number of hours
per employee, which stands at 44 hours in 2023 compared to 42 hours in 2022, 10% more than in
2022 for the ICO Group.
The Training Plan includes the training objectives for the number of hours and investment in: training
in sustainability, in the Systems Plan, on-the-job training related to the ICO’s activity and regulations,
language learning and improvement, and the development of personal skills useful for the job.
In line with the Training Plan, this year’s highlights were, in this order, on-the-job training, language
training and training in sustainability. The Systems Plan, which focuses on training in new
technologies, was also maintained in order to help the team adapt to the new technological tools
needed to implement the projects developed by the ICO.
In 2023, there has been an increase in the investment dedicated to the workplace, which represents
42% compared to 16% the previous year, while investment in language learning and improvement
has decreased to 37% of the investment, 15% has been allocated to training in sustainability
compared to 7% in 2022, 3% to training in the Systems Plan, which remains stable compared to 2022,
and 2% to training in skills and postgraduate training and certifications.
DISTRIBUTION OF TRAINING HOURS BY OCCUPATIONAL GROUP - GROUP ICO
HOURS
2023
2022
WOMEN
2023
MEN
2023
HOURS PER
PERSON
(TOTAL)
HOURS PER
PERSON
(WOMEN)
DIRECTORS
694.86
758
279.85
415.01
40.87
39.98
MIDDLE MANAGEMENT
2,272
1,693
1,138.02
1,133.73
39.17
35.56
TECHNICIANS
11,903
11,458
7,404.59
4,498.9
47.61
49.70
DIRECTORS
1,272
2,050
1,264.86
7
21.56
23.87
SCHOLARS
70
124
31
39
TOTAL
16,212
16,083
10,118
6,094
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
131
DISTRIBUTION OF INVESTMENT IN TRAINING BY TRAINING AXIS - ICO GROUP
EUROS
2023
2022
Variation
s/2022
WOMEN
MEN
LANGUAGES
58,595
74,384
-21%
42,275
16,320
ON-THE-JOB TRAINING
67,184
18,966
254%
46,571
20,613
SUSTAINABILITY
24,540
8,003
207%
17,543
6,998
SYSTEMS PLAN
5,177
3,600
44%
1,234
3,943
SKILLS TRAINING
1,646
327
403%
1645,6
0
ACADEMIC TRAINING, POSTGRADUATE STUDIES AND
CERTIFICATION
1,979
9,772
-80%
266
1,713
TOTAL
159,121
115,052
38%
109,534
49,587
The differences between women and men must be interpreted in relation to the weight of each sex in
the overall workforce or category.
Lastly, it should be noted that ICO Group plans to provide voluntary access to the training activities
contained in its Training Plan to professionals who are on childbirth and childcare leave, breastfeeding
leave or leave of absence to care for children or family members, so that absence is not a barrier to
professional progress. In fact, of the 12 people who took any of these leaves in 2023, 75% of the
professionals took part in some training activity during this period.
5.9 UNIVERSAL ACCESSIBILITY OF PERSONS WITH DISABILITY
Accessibility for people with disabilities
ICO Group has facilities, tools and workstations adapted to allow accessibility for people with reduced
mobility or other types of functional disability who carry out their professional activity at ICO or who
visit the facilities. Thus, there are 5 people with recognised disabilities (functional diversity/physical
disability) on the staff, 80% of whom are women. In addition, in 2023, we have a person with a disability
on a grant from the A LA PAR Foundation.
The Fundación ICO holds the Accessible Tourism badge awarded to the ICO Museum for
incorporating universal accessibility measures into its establishment and for its commitment to
welcoming and caring for people with disabilities and with accessibility needs in general, developed
through the provision of adapted, easy-to-read material on the Museum’s exhibitions and the
organisation of activities with a sign language interpreter.
The ICO corporate portal is designed to comply with Royal Decree 1112/2018, of 7 September, on
Accessibility of Public Sector Websites and Applications for Mobile Devices. A practical and accessible
corporate portal is made available to society, guaranteeing access to the information and services on
its pages to all users without restriction due to disability, medium or context through which this portal
is accessed.
At the same time, the www.ico.es portal aims to adapt to the standards and regulations in force in
relation to accessibility, complying with the double A (AA) verification points defined in the Web
Content Accessibility Guidelines (WCAG 2.1) specification belonging to the W3C.
Integration of people with disabilities
Since 2016, ICO has been hosting several students from the A LA PAR Foundation who are part of
the CAMPVS educational project aimed at young people with functional diversity who, after completing
their formal education, wish to access higher education in order to develop a higher degree of
personal, social and professional competence.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
132
Through this programme, these young people specialise in the administrative branch, acquiring
general knowledge of business, information technology, economics, law, financial culture and English,
as well as working on personal autonomy and socio-labour skills. The studies last three years and end
with a six-month training internship in a company, a stage in which ICO helps them to complement
their training with practical experience and acquire the knowledge and skills necessary to function
fluently in the work environment.
Since the collaboration with the ALAPAR Foundation began, ICO has taken in 14 students; 7 have
found employment, 3 of them are preparing for competitive examinations and the rest are continuing
their training to improve their employability.
5.10 EQUALITY AND DIVERSITY
Equality
One of the guiding principles on which the responsible management of ICO Group is based is equal
opportunities, in a broad sense, which is evident both in the public employment offer processes and
in tenders for the purchase of goods or the contracting of services.
The above sections show the breakdown of the workforce by gender, and how women have a greater
participation in practically all professional groups. In terms of female representation on governing
bodies, the ICO General Council (50% women and 50% men), the Council of Directors of AXIS (50%
women and 50% men) and the Council of Trustees of the Fundación ICO (40% women and 60% men)
stand out.
Managing diversity and combating inequalities and discrimination
1) Measures for the empowerment of women
In the fourth year of the II Equality Plan, approved at the end of 2019, actions were carried out in the
seven axes that structure the Plan. Of the 45 measures included in the II Equality Plan, 43 (96%) have
been fulfilled by 2023 and another 2 are in progress. In total, more than 100 actions have been carried
out, and the number of actions carried out in previous years of the Plan has been greatly surpassed.
In 2023, the negotiating table for the III Equality Plan was set up, with the aim of approving it in 2024.
In 2020, ICO joined the Where Are They? Manifesto, an initiative launched by the European
Parliament to promote and enhance the presence of women in discussion forums and conferences.
During 2023, ICO participated in 231 conferences as a speaker (both in person and online), organised
in collaboration with various institutions, sectoral associations and collaborating agents, covering the
whole of Spain. Of the total number of conferences, the President of ICO participated as a speaker in
63 of them. In the remaining 255 conferences, 149 women participated in representation of the ICO
(58%).
2) Protocols against sexual and gender-based harassment
With regard to the prevention of sexual and gender-based harassment, the 2
nd
ICO Equality Plan has
a procedure against harassment in the workplace available to all employees that specifically
incorporates the prevention of sexual and gender-based harassment. To date, this has not been
activated at any time. No complaints have been received regarding discrimination.
In addition, within the framework of the commitments assumed in the Equality Plan, ICO has joined
the Ministry of Equality’s Red de Puntos Violeta initiative to combat gender violence and massively
disseminate the information necessary to know how to act in the event of violence against women.
3) Measures taken to promote employment
The ICO, as a Public Sector entity and in accordance with the dictates of the Basic Statute of the
Public Employee, promotes access to employment under the principles of equality, merit and ability
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
133
through periodic competitive examination procedures with public notice, reserving a quota of no less
than 5% of vacancies to be filled by people with disabilities.
Internally, ICO encourages professional development and internal job mobility among its employees
through the system of promotion by filling vacancies established in the institution’s Collective
Bargaining Agreement.
In addition, the Instituto de Crédito Oficial has signed a collaboration agreement with the SEPI
Foundation whose objective is to organise and develop a programme of practical training scholarships
in the work centres of the ICO Group, under the supervision of suitable tutors, aimed at young people
with recent university degrees in order to facilitate and prepare them for their access to the world of
work, ensuring that they acquire practical knowledge, maturity, employability, status and vision of the
business world. In 2023, ICO Group welcomed 24 scholarship holders from the SEPI Foundation,
whose scholarships have a maximum duration of 18 months.
At the end of the fellowship, the ICO conducts a survey to find out their degree of satisfaction. In 2023,
the average level of satisfaction of the scholarship holders who completed their scholarship at ICO
was 8.24 out of 10, highlighting the success of the programme. Many of them, after completing their
scholarship, participate in the selection processes published by ICO Group to hire permanent staff. In
fact, in the last three ICO job offers, 8 of the selected candidates were previously ICO scholarship
holders at Fundación SEPI.
Collaterally, there are further advantages in broadening the framework of participation in the company
by involving the professionals in the successful implementation of the Fellowship Programme.
Although some act as tutors and others as trainers, all can have the opportunity to participate in the
orientation and integration of the trainees. In addition to the practical training, they are offered the
possibility of attending training actions tailor-made for ICO staff if places are available.
During 2023, 18 young people have had the opportunity to join the “First Professional Experience
Programme in Public Administrations”, a grant obtained by the ICO within the framework of the
Transformation and Resilience Recovery Plan, whose purpose is to promote the hiring of young
unemployed people in the form of a 12-month internship contract, so that they can acquire their first
experiences in public employment, and training for the job, as well as develop social and professional
skills and competences. Of these, 44% (8/18) are women.
All of this is part of ICO’s social commitment to offer real opportunities for the integration of young
people into the labour market by increasing their employability.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
134
6 ABOUT THE REPORT
This report is part of the Management Report of the Consolidated Financial Statements of the ICO
Group, in accordance with article 44.1 and 6 of the Commercial Code, as amended by Law 11/2018
on Non-Financial Information and Diversity.
This report has been prepared in accordance with the Global Reporting Initiative (GRI) standard for
the preparation of sustainability reports, as well as taking into account the reference frameworks
described throughout the document and, in particular, the Sustainable Development Goals. The GRI
methodology allows reporting on the most relevant issues in relation to the sustainability of the
company and its management.
Point 8 of the document details in table form the concordance of the different reporting requirements
of GRI, Law 11/2018, the Global Compact Principles and their relationship with the SDGs.
For the drafting of the Non-financial information statement, information has been gathered from all
available and timely internal and external sources, and internal organisational documents such as the
Strategic Plan, relevant Policies and Procedures, as well as all internal reporting and monitoring
information have been taken into account to give a true picture of the company’s performance in terms
of sustainability and social responsibility.
➢ SCOPE AND APPROVAL
The Non-financial information statement forms part of the management report of the consolidated
financial statements of ICO Group and therefore follows the same approval procedure, i.e. it is drawn
up by the President on March each year and subsequently approved by the Operations Committee,
the highest governing and management body of the ICO Group, and endorsed by the General Council
in its capacity as the Institute’s highest governing body.
The information in this document refers, inter alia, to the sustainability performance of ICO Group in a
broad sense between January 1 and December 31, 2023, based on the materiality study described in
section 1.4. Wherever possible, the data has been provided on a consolidated level. Where the
information does not refer to all the companies included in the scope, this is expressly stated. This
report is prepared on an annual basis.
➢ PRINCIPLES FOR THE PREPARATION OF THE NON-FINANCIAL INFORMATION
STATEMENT
The principles set out in the European Commission’s guidelines (2017/C 215/01) have been taken
into account in the preparation of this NFIS, in particular the principles that the information disclosed
should be meaningful; accurate, balanced and understandable; and complete but concise.
In this respect, the ICO Group’s NFI contains the information necessary to understand its evolution,
results and situation, as well as the impact of its activity, relating at least to environmental and social
issues, as well as to personnel, respect for human rights and the fight against corruption and bribery.
The non-financial information provided gives a true and fair view of the issues developed, providing
information that is comparable with other entities or with previous years where appropriate.
Likewise, the content of the non-financial information statement has been defined taking into account
the stakeholders and the material aspects identified. In this respect, ICO Group has carried out a
materiality study through an exhaustive process of internal and external analysis to identify the
relevant aspects. The study has been carried out from a dual materiality and impact assessment
perspective, and includes the different aspects ordered by priority, with more specific explanations as
to why they are relevant.
The ICO Group’s financial statements and financial information have been audited by the General
State Comptroller’s Office (Intervención General de la Administración del Estado, IGAE) through
Mazars Auditores, S.L. In relation to the Non-financial information statement, ICO Group has
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
135
submitted its content to verification by independent experts in order to increase the confidence of
stakeholders, having also been carried out by Mazars Auditores, S.L. During the verification process,
it has been verified that the non-financial indicators selected by ICO Group comply with the principles
of comparability, materiality, relevance and reliability and the information is accurate, comparable and
verified by an independent verification service provider. The independent assurance report, which
includes the objectives and scope of the process, as well as the review procedures used and its
conclusions, is attached as an annex to this report.
➢ CONTACT
For any questions regarding the content of this report, please contact: estudios.evaluacion@ico.es.
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
136
7 ORGANISATION CHART
The organisational structure of ICO Group entities is as follows:
PRESIDENCY
DIRECTORATE FOR LEGAL
ADVICE AND COUNCIL
SECRETARIAT
Financial Operations and
Economic and Labour Policy
Advisory Area
COMMUNICATION AND
CABINET DPT.
INTERNAL AUDIT DPT.
European, Institutional and State
Fund Affairs Advisory Area
Institutional Relations Area
Regulatory Compliance Area
ASSET OPERATIONS AND
RECOVERIES AND GUARANTEES
ADVISORY DEPARTMENT
Recoveries and Guarantees
Advisory Area
ICO FOUNDATION
AXIS
DG FINANCE AND
STRATEGY
DG BUSINESS
DG RISK AND
FINANCIAL CONTROL
DG TECHNICAL AND
RESOURCES
CHAIRMAN
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
137
DIRECTORATE-GENERAL FOR FINANCE AND STRATEGY
STRATEGY AND SUSTAINABILITY
MANAGEMENT
FINANCE AND TREASURY
MANAGEMENT
Sustainability Development Area
Financial Operations Management
Area
BALANCE SHEET
MANAGEMENT DPT.
Methodologies and Sustainability
Measurement Area
Capital Markets Area
Studies and Evaluation Service Area
Treasury Area
Securitisation and Investee
Management Area
GENERAL BUSINESS MANAGEMENT
INTERNATIONAL
DIRECTORATE
FOR STATE
FUNDS
MEDIATION
MANAGEMENT AND
SMES
CORPORATE
AND
INSTITUTIONAL
FINANCE
DIRECTORATE
DIRECTORATE
INTERNATIONAL
FINANCE AND
EUROPEAN UNION
Operations
Restructuring Area
Mediation with Financial
Institutions
Territorial State
Funds Area
International
Financing and
Guarantees
Area
PRODUCT
DEVELOPMENT
DPT.
FEI Management
Area
Information Area
CORPORATE
FINANCE DPT.
FEI Administration
Area
SME FINANCING AND
GUARANTEES DPT.
Medium
Enterprise
Finance Area
Guaranteed Lines
Management Area
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
138
DIRECTORATE GENERAL FOR RISK AND FINANCIAL CONTROL
RISK MANAGEMENT
MONITORING AND
RECOVERIES
DIRECTORATE
BUDGET AND
FINANCIAL CONTROL
DIRECTORATE
Global Risk Control
Area
Wholesale Tracking
and Recovery Area
Information Management
Area
OPERATIONAL
MANAGEMENT DPT.
METHODOLOGIES
AND CREDIT RISK
DPT.
Retail Tracking and
Recovery Area
Budgeting and
Management Control
Area
Direct Operations
Administration Area
ESG Admissions and
Risk Area
Management Control
Analysis and
Methodologies Area
Issue and Treasury
Management Area
Risk Methodology and
Policy Area
ACCOUNTING
DEPARTMENT
Administration Area
Mediation Operations and
Certification of Public
Bodies
Accounting and Solvency
Management Area
Financial Reporting Area
and CIRBE
TECHNICAL AND RESOURCES DIRECTORATE GENERAL
INFORMATION SYSTEMS
DIRECTORATE
Application Development Area
HUMAN RESOURCES AND CSR
DEPT.
Platforms Area
Human Capital and CSR Area
Organisation and Quality Area
Digital Solutions Area
Labour Relations Area
General Services and Assets
Area
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139
PRESIDENCY
VICE-PRESIDENCY
FUNDACIÓN ICO MANAGEMENT
ART AND
SUSTAINABLE
ARCHITECTURE AREA
SUSTAINABLE
ECONOMY AND
FINANCE AREA
PRESIDENCY
VICE-PRESIDENCY
AXIS DIRECTORATE GENERAL
PORTFOLIO
MANAGEMENT
AREA
FINANCIAL AREA
LEGAL ADVICE
AREA
INTERNATIONAL
RELATIONS AREA
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
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8 TABLE OF CONTENTS LAW 11/2018 AND GRI
Table of contents Law 11/2018
Description Law 11/2018
Chapter
Business
Model
Brief description of the group’s business model
-Business environment
-Organisation and structure
- Markets in which it operates
- Objectives and strategies
- Factors and trends that may affect its future
development
1. ICO Group, its strategy and its environment
Applied
Policies
- Policies applied by the group on non-financial
aspects, due diligence procedures applied and
measures taken
- Results of these policies accompanied by non-
financial key performance indicators
4.3. Specific ethics and responsible management
tools
4.4 Main internal management results
Main Risks
- Main risks related to non-financial aspects
linked to the group’s activities
- Procedures used to identify, assess and
manage these risks
- Impacts identified on the main risks in the
short, medium and long term
4.1. Risk management: identification and
monitoring
4.2. General instruments for ethics and
responsible management
Non-
Financial
KPIs
Reference in the report to the national,
European or international reporting framework
used for the selection of non-financial key
performance indicators that are relevant to the
specific business activity, and that meet the
criteria of comparability, materiality, relevance
and reliability.
1.4. Materiality analysis
2.1. Reference frameworks
2. Our model of value contribution to the society:
promoting sustainable growth.
6. About the report
Environme
ntal
Manageme
nt
- Current and foreseeable environmental, health
and safety impacts of the company’s activities
- Environmental assessment/certification
procedures
- Resources devoted to the prevention of
environmental risks
- Application of the precautionary principle
- Amount of provisions and safeguards for
environmental risks
4.1 Risk management: identification and
monitoring
4.4. Main internal management results
Pollution
Measures to prevent, reduce or remediate
carbon emissions that seriously affect the
environment, taking into account any form of
4.4.3. Pollution. Emissions. Internal carbon
footprint
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
141
activity-specific air pollution, including noise
and light pollution.
Circular
Economy
and Waste
Prevention
and
Managemen
t
- Measures for prevention, recycling, reuse,
reuse or other forms of waste recovery and
disposal
- Actions to combat food waste
4.4.2. Circular economy and waste management
Sustainable
Use of
Resources
- Water consumption and water supply
according to local constraints
- Consumption of raw materials and measures
taken to improve efficiency of their use
- Direct and indirect energy consumption
- Measures taken to improve energy efficiency
- Use of renewable energies
4.4.1. Responsible use of natural resources
4.4.2. Circular economy and waste management
4.4.3. Pollution. Emissions. Internal carbon
footprint
Climate
Change
- Significant elements of GHG emissions
generated as a result of the company’s
activities, including the use of the goods and
services it produces
- Measures taken to adapt to the consequences
of climate change
- Voluntary medium- and long-term reduction
targets set to reduce GHG emissions
- Means implemented to reduce GHG emissions
2.4. Promoting sustainability in our activity as
funders
4.4.1. Responsible use of natural resources
4.4.3. Pollution. Emissions. Internal carbon
footprint
Protection of
Biodiversity
- Measures taken to conserve or restore
biodiversity
- Impacts caused by activities or operations in
protected areas
2.4. Promoting sustainability in our activity as
funders
4.4.1. Responsible use of natural resources
Employmen
t
- Total number and distribution of employees by
gender, age, country and job classification
- Total number and distribution of employment
contracts, average annual number of
permanent contracts, temporary contracts and
part-time contracts by gender, age and job
classification
- Number of dismissals by gender, age and job
classification
- Average remuneration and its evolution
broken down by gender, age and job
classification,
Average remuneration of directors and
executives, including variable remuneration,
allowances, indemnities, payments to long-term
savings schemes and any other payments
disaggregated by sex
- Implementation of policies to disconnect from
work
- Employees with disabilities
5.1. Payroll information
5.2. Contract modalities
5.3. Average remunerations and salary gap
1.3. Governance structure and management
5.5 Work-life balance
5.9. Universal accessibility of persons with
disability
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
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Work
organisatio
n
- Organisation of working time
- Number of hours of absenteeism
- Measures aimed at facilitating the enjoyment
of work-life balance and encouraging co-
responsibility of both parents
5.4. Work organisation
5.5. Work-life balance
5.6. Security and health
Health and
Safety
- Health and safety conditions at work
- Accidents at work (frequency and severity) and
occupational diseases, disaggregated by sex.
5.6. Security and health
Social
Relations
- Organisation of social dialogue, including
procedures for informing, consulting and
negotiating with staff
- Percentage of employees covered by collective
agreements by country
- Balance of collective agreements, particularly
in the field of occupational health and safety at
work
- Involvement of workers in the management of
the company (Law 5/2021)
5.7. Social relations
Training
- Policies implemented in the field of training
- Total number of hours of training by
professional category
5.8. Training
Universal
Accessibility
Persons with
Disabilities
Measures implemented by the organisation to
facilitate accessibility (physical and digital) for
persons with disabilities
5.9. Universal accessibility of persons with
disability
Equality
- Measures taken to promote equal treatment
and equal opportunities between women and
men
- Equality plans
- Measures taken to promote employment
- Protocols against sexual and gender-based
harassment
- Integration and universal accessibility of
persons with disabilities
- Anti-discrimination and diversity management
policy
5.10. Equality and diversity
Respect for
Human
Rights
- Implementation of human rights due diligence
procedures
- Prevention of risks of human rights abuses and
measures to mitigate, manage and redress
3.2.1. Human rights
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
143
possible abuses
- Reporting of human rights abuses
- Promotion and enforcement of the provisions
of the International Labour Organisation’s core
conventions related to respect for freedom of
association and the right to collective bargaining
- Elimination of discrimination in respect of
employment and occupation
- Elimination of forced or compulsory labour
- Effective abolition of child labour
Combating
Corruption
and Bribery
- Measures taken to prevent corruption and
bribery
- Measures taken
to combat money laundering
- Contributions to foundations and non-profit
entities
3.2.1. Human rights
3.2.5. Corporate volunteering
3.2.6. Results, tax and subsidy information
4.3. Specific ethics and responsible management
tools
Company
Commitme
nts to
Sustainable
Developme
nt
- Impact of the company’s activity on
employment and local development
- Impact of the company’s activity on local
populations and on the territory
- Relations maintained with local community
stakeholders and the modalities of dialogue
with them
- Partnership or sponsorship actions
2.2. Its financial activity: supporting the productive
fabric
2.3. Positive macroeconomic impact in the
Spanish economy
2.4. Promoting sustainability in our activity as
funders
3.1. Fundación ICO. Promoting culture and
knowledge
3.2.4. Partnership with sustainability associations
3.2.5. Corporate volunteering
Subcontrac
ting and
Suppliers
- Inclusion in procurement policy of social,
gender equality and environmental issues
- Consideration in relations with suppliers and
subcontractors of their social and
environmental responsibility
- Monitoring and auditing systems and audit
results
3.2.2. Suppliers
Consumers
- Consumer health and safety measures
- Complaints systems, complaints received and
resolution of complaints
3.2.3. Customers
Tax
Informatio
n
- Profits earned country by country
- Taxes on profits paid
- Public grants received
3.2.6. Results, tax and subsidy information
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
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GRI Content Index with references to Global Compact Progress Report and SDGs
Declaration of use
ICO Group has prepared the report in accordance with the GRI Standards
for the period from January 1 to December 31, 2023.
GRI 1 used
GRI 1: 2021 Fundamentals
Applicable GRI Sector Standards
Not applicable as there is no sectoral standard developed for the banking
sector.
Standards
GRI
Description
Ref. Global
Compact
Progress
Report
Ref.
SDG
Chapter / Link / Omissions
General Contents
The organisation and its reporting practices
GRI2: General contents 2021
GRI
2-1
Organisational details
General
information
1.1. Composition – pag.4
1.2. Nature and Functions – pag.4
GRI
2-2
Entities covered by sustainability
reporting
General
information
1.1. Composition – pag.4
6. About the report – pag.134
GRI
2-3
Reporting period, frequency and contact
point
General
information
6. About the report – pag.134
GRI
2-4
Updating of information
General
information
4.4.3. Pollution, Emissions, Internal carbon footprint –
pag. 106
GRI
2-5
External verification
General
information
6. About the report – pag.134
Activities and workers
GRI2: General contents 2021
GRI
2-6
Activities, value chain and other business
relationships
General
information
1.2. Nature and Functions – pag.4
1.5. ICO Group’s strategy – pag. 22
2.2. Its financial activity: supporting the productive fabric
– pag.36
2.4. Promoting sustainability in our activity as funders –
pag.63
3.2.2. Suppliers – pag.87
3.2.3. Customers – pag.87
GRI
2-7
Employees
Principle
no.6
8
5.1. Payroll information – pag.116
5.2. Contract modalities – pag.118
GRI
2-8
Non-employed workers
Principle
no.6
8
5. Human team and diversity management – pag.115
Governance
GRI2: General contents 2021
GRI
2-9
Governance structure and composition
General
information
5, 16
1.3. Governance structure and management – pag.7
GRI
2-10
Appointment and selection of the
highest governance body
General
information
5, 16
1.3. Governance structure and management – pag.7
GRI
2-11
President of the highest governing body
General
information
16
1.3. Governance structure and management – pag.7
GRI
2-12
Role of the highest governance body in
overseeing sustainability reporting
General
information
16
1.3. Governance structure and management – pag.7
4.1. Risk management: identification and monitoring –
pag.94
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
145
4.2. General instruments for responsible management –
pag.97
GRI
2-13
Delegation of responsibility for impact
management
General
information
1.3. Governance structure and management – pag.7
4.1. Risk management: identification and monitoring –
pag.94
4.2. General instruments for responsible management –
pag.97
4.3. Specific ethics and responsible management tools –
pag.98
GRI
2-14
Role of the highest governance body in
sustainability reporting
General
information
6. About the report – pag.134
GRI
2-15
Conflicts of interest
General
information
16
1.3. Governance structure and management – pag.7
GRI
2-16
Communication of critical concerns
General
information
4.1. Risk management: identification and monitoring –
pag.94
4.2. General instruments for responsible management –
pag.97
4.3. Specific ethics and responsible management tools –
pag.98
GRI
2-17
Collective knowledge of the highest
governance body
General
information
4
1.3. Governance structure and management – pag.7
GRI
2-18
Performance evaluation of the highest
governance body
General
information
1.3. Governance structure and management – pag.7
GRI
2-19
Remuneration policies
General
information
1.3. Governance structure and management – pag.7
GRI
2-20
Process for determining remuneration
General
information
16
1.3. Governance structure and management – pag.7
5.3. Average remunerations and salary gap – pag.119
GRI
2-21
Total annual compensation ratio
General
information
1.3 Governance structure and management – pag.7
Strategy, policies and practices
GRI2: General contents 2021
GRI
2-22
Sustainable Development Strategy
Statement
General
information
1.5. ICO Group’s strategy – pag.22
GRI
2-23
Commitments and policies
General
information
Principle no.
10
16
1.5. ICO Group’s strategy – pag.22
4.1. Risk management: identification and monitoring –
pag.94
4.2. General instruments for responsible management –
pag.97
4.3. Specific ethics and responsible management tools –
pag.98
3.2.1. Human rights – pag.85
GRI
2-24
Incorporation of commitments and
policies
General
information
4.1. Risk management: identification and monitoring –
pag.94
4.2. General instruments for responsible management –
pag.97
4.3. Specific ethics and responsible management tools –
pag.98
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
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GRI
2-25
Processes to remedy negative impacts
General
information
12, 13,
14, 15
3.2.3. Customers – pag.87
4.1. Risk management: identification and monitoring –
pag.94
4.2. General instruments for responsible management –
pag.97
4.3. Specific ethics and responsible management tools –
pag.98
5.5 Work-life balance – pag.123
GRI
2-26
Mechanisms for seeking advice and
raising concerns
Principle no.
10
16
3.2.3. Customers – pag.87
4.3. Specific ethics and responsible management tools –
pag.98
GRI
2-27
Compliance with legislation and
regulations
Principles no.
7,8,9
12, 13,
14, 15,
16
4.3. Specific ethics and responsible management tools –
pag.98
GRI
2-28
Membership of associations
General
information
1.7. Public-private partnerships and collaboration –
pag.27
3.2.4. Partnership with sustainability associations –
pag.89
Stakeholder involvement
GRI2: General
contents 2021
GRI
2-29
Approach to Stakeholder Engagement
General
information
1.4. Materiality analysis – pag.17
3.2.3. Customers – pag.87
GRI
2-30
Collective bargaining agreements
General
information
8
5.7. Social relations – pag.128
Material topics
GRI3 Material
topics 2021
GRI
3-1
Process of determining the material
topics
General
information
1.4. Materiality analysis – pag.17
GRI
3-2
List of material topics
General
information
1.4. Materiality analysis – pag.17
MT1 - Good Corporate Governance, Transparency and Business Ethics
GRI3 Material topics 2021
GRI
3-3
Management of material topics
Principle no.
10
16
1.2. Nature and Functions – pag.4
1.3. Governance structure and management – pag.7
4.1. Risk management: identification and monitoring –
pag.94
4.2. General instruments for responsible management –
pag.97
4.3. Specific ethics and responsible management tools –
pag.98
GRI 205
Anticorruption
2016
GRI
205-1
Operations assessed for corruption-
related risks
Principle no.
10
16
4.3. Specific ethics and responsible management tools –
pag.98
GRI
205-2
Communication and training on anti-
corruption policies and procedures
Principle no.
10
16
4.3. Specific ethics and responsible management tools –
pag.98
GRI 207 Fiscality
2019
GRI
207-1
Fiscal approach
General
information
16
3.2.6. Results, tax and subsidy information – pag.92
GRI
207-2
Fiscal governance, control and risk
management
General
information
16
3.2.6. Results, tax and subsidy information – pag.92
MT2 - Management of financial and non-financial risks
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
147
GRI3 Material
topics 2021
GRI
3 - 3
Management of material topics
Principle no.
7, 8 and 9
16
4.1. Risk management: identification and monitoring –
pag.94
GRI 201 Economic
performance 2016
GRI
201 - 2
Financial implications and other risks and
opportunities arising from climate
change
Principle no.
7, 8 and 9
13
2.4. Promoting sustainability in our activity as funders –
pag.63
4.1. Risk management: identification and monitoring –
pag.94
4.2. General instruments for responsible management –
pag.97
TM3 - Sustainable financing linked to ESG criteria
GRI3 Material
topics 2021
GRI
3 - 3
Management of material topics
Principle no.
7, 8 and 9
7, 8, 9,
10, 11,
13, 14,
15
1.5. ICO Group’s strategy – pag.22
2.1. Reference frameworks – pag.32
2.4. Promoting sustainability in our activity as funders –
pag.63
GRI 203 Indirect
economic
impacts 2016
GRI
203 - 1
Investments in infrastructure and
services supported
Principle no.
7, 8 and 9
7, 8, 9,
10, 11,
13, 14,
15
2.2. Its financial activity: supporting the productive fabric
– pag.36
2.4. Promoting sustainability in our activity as funders –
pag.63
MT4 - Solvency and economic resilience
GRI3 Material
topics 2021
GRI
3 - 3
Management of material topics
General
information
8, 16
2.2. Its financial activity: supporting the productive fabric
– pag.36
2.4. Promoting sustainability in our activity as funders –
pag. 63
GRI 201
Economic
performance
2016
GRI
201 - 1
Direct economic value generated and
distributed
General
information
8, 16
3.2.6. Results, tax and subsidy information – pag.92
Privacy, data protection and cyber-security
GRI3 Material
topics 2021
GRI
3 - 3
Management of material topics
General
information
16
4.3. Specific ethics and responsible management tools –
pag.98
GRI 418
Customer
privacy 2016
GRI
418 - 1
Substantiated complaints regarding
breaches of customer privacy and loss of
customer data
General
information
16
4.3. Specific ethics and responsible management tools –
pag.98
MT6 - Digital transformation and innovation
GRI3 Material
topics 2021
GRI
3 - 3
Management of material topics
General
information
9, 16
1.5. ICO Group’s strategy – pag.22
2.2. Its financial activity: supporting the productive fabric
– pag.36
MT7 - Public-private collaboration
GRI3
Material
topics 2021
GRI
3 - 3
Management of material topics
General
information
16, 17
1.7. Public-private partnerships and collaboration – pag.27
MT8 - Support for the productive fabric and value creation
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
148
GRI3
Material
topics 2021
GRI
3 - 3
Management of material topics
General
information
1, 2, 3,
8, 10,
17
2. Our model of value contribution to the society:
Promoting sustainable growth – pag.31
GRI 203 Indirect
economic
impacts 2016
GRI
203 - 2
Significant indirect economic impacts
General
information
1, 2, 3,
8, 10,
17
2.3. Positive macroeconomic impact in the Spanish
economy – pag.62
MT9 - Respect for Human Rights
GRI3
Material
topics 2021
GRI
3 - 3
Management of material topics
Principle no.
1 and 2
16
3.2.1. Human rights – pag.85
MT10 - Customer experience and satisfaction
GRI3
Material
topics 2021
GRI
3 - 3
Management of material topics
General
information
16
3.2.3. Customers – pag.87
MT11 - Talent management, training and development of your professionals
GRI3
Material
topics 2021
GRI
3 - 3
Management of material topics
Principle no.
3, 4, 5 and 6
4, 5 ,8
5. Human team and diversity management – pag.115
GRI 401
Empleo
2016
GRI
401 - 1
Recruitment of new employees and staff
turnover
Principle no.
3, 4, 5 and 6
5, 8
5.1. Payroll information – pag.116
GRI
401 - 3
Parental leave
Principle no.
3, 4, 5 and 6
5, 8
5.5. Work-life balance – pag.125
GRI 404 training and Education
2016
GRI
404 - 1
Average hours of training per employee
per year
Principle no.
3, 4, 5 and 6
4, 5, 8
5.8. Training – pag.131
GRI
404 - 2
Programmes to develop employee skills
and transition assistance programmes
Principle no.
3, 4, 5 and 6
8
5.8. Training – pag.131
GRI
404 - 3
Percentage of employees who receive
regular performance and career
development appraisals
Principle no.
3, 4, 5 and 6
5, 8
4.3. Specific ethics and responsible management tools –
pag.98
MT12 - Safety, health and well-being
GRI3
Material
topics 2021
GRI
3 - 3
Management of material topics
Principle no.
3, 4, 5 and 6
3, 8
5.6. Security and Health – pag.126
GRI 403 Health and Security in the work 2019
GRI
403 - 1
Occupational health and safety
management system
Principle no.
3, 4, 5 and 6
3, 8
5.6. Security and Health – pag.126
GRI
403 - 2
Hazard identification, risk assessment
and incident investigation
Principle no.
3, 4, 5 and 6
3, 8
5.6. Security and Health – pag.126
GRI
403 - 3
Occupational health services
Principle no.
3, 4, 5 and 6
3, 8
5.6. Security and Health – pag.126
GRI
403 - 4
Worker participation, consultation and
communication on occupational health
and safety at work
Principle no.
3, 4, 5 and 6
3, 8
5.6. Security and Health – pag.126
GRI
403 - 5
Training of workers on occupational
health and safety at work
Principle no.
3, 4, 5 and 6
3, 8
5.6. Security and Health – pag.126
GRI
403 - 6
Promoting workers’ health
Principle no.
3, 4, 5 and 6
3, 8
5.6. Security and Health – pag.126
GRI
403 - 8
Coverage of the occupational health and
safety management system
Principle no.
3, 4, 5 and 6
3, 8
5.6. Security and Health – pag.126
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
149
GRI
403 - 9
Injuries due to accidents at work
Principle no.
3, 4, 5 and 6
3, 8
5.6. Security and Health – pag.126
GRI
403 - 10
Occupational diseases and illnesses
Principle no.
3, 4, 5 and 6
3, 8
5.6. Security and Health – pag.126
MT13 - Diversity, inclusion and equal opportunities
GRI3
Material
topics 2021
GRI
3 - 3
Management of material topics
Principle no.
1, 2, 3, 4, 5
and 6
5, 8,
10, 16
5. Human team and diversity management – pag.115
GRI 401 Empleo
2016
GRI
401 - 2
Benefits for full-time employees that are
not provided to part-time or temporary
employees.
Principle no.
3, 4, 5 and 6
8
5.7 Social relations – pag.128
GRI 405 Diversity and
equal opportunities
2016
GRI
405 - 1
Diversity of governing bodies and
employees
Principle no.
3, 4, 5 and 6
5, 8
1.3. Governance structure and management – pag.7
5.1. Payroll information – pag.116
5.10. Equality and Diversity – pag.132
GRI
405 - 2
Ratio between basic salary and
remuneration of women and men
Principle no.
3, 4, 5 and 6
5, 8, 10
5.3. Average remunerations and salary gap – pag.119
GRI 406 No
discrimination
2016
GRI
406 - 1
Cases of discrimination and remedial
action taken
Principle no.
3, 4, 5 and 6
5, 8, 16
3.2.1 Human rights – pag.85
MT14 - Financial education
GRI3
Material
topics 2021
GRI
3 - 3
Management of material topics
General
information
4
3.1. ICO Foundation. Promoting culture and knowledge –
pag.79
MT15 - Social engagement and community impact
GRI3 Material
topics 2021
GRI
3 - 3
Management of material topics
General
information
4, 12
2. Our model of value contribution to the society:
Promoting sustainable growth – pag.31
3. Commitment with the society: Beyond our financial
activity – pag.79
GRI 204 Supply
practices 2016
GRI
204 - 1
Proportion of expenditure on local
suppliers
General
information
12
3.2.2 Suppliers – pag.86
MT16 - Protecting the environment, combating climate change and energy transition
GRI3
Material topics 2021
GRI
3 - 3
Management of material topics
Principle no.
7, 8 and 9
7, 11,
13, 14,
15
2.1. Reference frameworks – pag.32
2.4. Promoting sustainability in our activity as funders –
pag.63
4.4. Main internal management results – pag.103
3.2.4 -Partnership with sustainability associations– pag.89
MT17 - Just ecological transition
GRI3 Material
topics 2021
GRI
3 - 3
Management of material topics
Principle no.
7, 8 and 9
7, 11,
13, 14,
15
2. Our model of value contribution to the society:
Promoting sustainable growth – pag.31
3. Commitment with the society: Beyond our financial
activity – pag.79
NON-FINANCIAL INFORMATION STATEMENT ICO GROUP 2023
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APPENDIX. GLOSSARY OF ABBREVIATIONS
AEB
Spanish Banking Association
AFD
French Development Agency
AFIF
Alternative Fuels Infrastructure Facility
AIReF
Independent Fiscal Accountability Authority
ALIDE
Latin American Association of Development Finance Institutions
AML/CFT
Prevention of Money Laundering and the Financing of Terrorism
ASCRI
Capital, Growth and Investment Partnership
BGK
The National Promotional Bank of Poland
BIS
Bank for International Settlements
CABEI
Central American Bank for Economic Integration
CAPE
Coalition of Finance Ministers for Climate Action
CAPEX
Capital Expenditure
CARI
Reciprocal Interest Adjustment Contract
CDC
Caisse des dépôts et consignations
CDP
Cassa Depositi e Prestiti
CECA
Spanish Confederation of Savings Banks
CEF
Connecting Europe Facility
CERSA
Spanish Counter guarantee Company
CESCE
Spanish Export Credit Insurance Company
CLAR
Capital and Liquidity Self-Assessment Report
CNMV
Spanish Securities and Exchange Commission
COFIDES
Spanish Development Finance Company
COI
Clean Oceans Initiative
COP
United Nations Climate Change Conferences
COPER
Operations Committee
CSCAE
Spanish Higher Council of Architects’ Associations
CSRD
Corporate Sustainability Reporting Directive
EBRD
European Bank for Reconstruction and Development
EC
European Commission
ECB
European Central Bank
EDW
European Datawharehouse, GmbH
EFR
Family-Responsible Company
EFRAG
European Financial Reporting Advisory Group
EIB
European Investment Bank
ELTI
European Long-Term Investors Association
EPA
Labour Force Survey
EQA
European Quality Assurance
ESG
Environmental, Social and Governance
ESMA
European Securities and Markets Authority
ETCI
European Tech Champions Initiative
EU
European Union
EuSEF
European social entrepreneurship funds
FCA
Financial Conduct Authority
FCAS
Water and Sanitation Cooperation Fund
FEI
European Investment Fund
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FFCCAA
Financing Fund for Autonomous Communities
FFEELL
Financing Fund for Local Authorities
FIEM
Internationalisation of Enterprise Fund
FINRESP
Centre for Sustainable and Responsible Finance in Spain
FOCIT
State Financial Fund for Tourism Competitiveness
FONPRODE
Development Promotion Fund
FSB
Financial Stability Council
GHG Protocol
Greenhouse Gas Protocol
GRI
Global Reporting Initiative
ICEI
Complutense Institute of International Studies
ICEX
Spanish Institute for Foreign Trade
ICMA
International Capital Market Association
IFC
International Finance Corporation
IGAE
General State Administration Comptroller’s Office
INES
National State of Security Report
JICE
Joint Initiative on Circular Economy
KFW
Kreditanstalt für Wiederaufbau
MAP
Ministry of Agriculture, Fisheries and Food
MARF
Alternative Fixed Income Market
MITECO
Ministry for Ecological Transition and the Demographic Challenge
MITMA
Ministry of Transport, Mobility and Urban Agenda
MIVAU
Ministry of Housing and Urban Agenda
MOOC
Massive Online Open Courses or massive open online courses
NEFI
Network of European Financial Institutions for Small and Medium Sized Enterprises
NFIS
Non-financial information statement
NFRD
Non-Financial Reporting Directive or Directive on non-financial information
NGEU / NextGen
Next Generation EU
NGFS
Network of Central Banks and Supervisors for Greening the Financial System
OFISO
Spanish Sustainable Finance Observatory
PCAF
Partnership for Carbon Accounting Financials
PERTE
Strategic Projects for Economic Recovery and Transformation
PNACC
National Climate Change Adaptation Plan
PNIEC
National Integrated Energy and Climate Plan
RAF
Risk Appetite Framework
RRM
Resilience and Recovery Mechanism
SAECA
State Agricultural Guarantee Company
SDG
Sustainable Development Goals
SEDIA
Secretary of State for Digitalisation and Artificial Intelligence
SFDR
Sustainable Finance Disclosure Regulation
SGR
Mutual Guarantee Societies
SIW
Sustainable Infrastructure Window
STEP
Strategic Technology Europe Platform
SWIFT
Society for Worldwide Interbank Financial Telecommunication
UIMP
Menéndez Pelayo International University
UNED
National University of Distance Education
UNEP
UN Environment Programme or United Nations Environment Programme
VPO
Social Housing
General Board
CAYETANA LADO CASTRO-RIAL, SECRETARY OF THE GENERAL BOARD OF THE INSTITUTO DE
CRÉDITO
OFICIAL, BY VIRTUE OF THE POWERS ESTABLISHED IN ARTICLE 13 OF ITS BYLAWS,
APPROVED BY ROYAL DECREE 706/1999, OF 30 APRIL,
C E R T I F I E S:
At the General Board session on 22 April, 2024 the following resolution, among others, was
adopted:
1
2
)
)
Approve the individual and consolidated annual accounts (balance sheet, profit and loss account,
statement
of recognised income and expense, statement of changes in equity, cash flow
statement
and notes to the financial statements) and the management report of the Instituto de
Crédito Oficial (ICO) for the financial year 2023.
Submit the annual accounts and the management report for the 2023 financial year, together with
the
proposed allocation of profits, within one month of approval, for consideration by the Minister
for
Economy, Trade and Business, who shall approve the allocation of profits, subject to a non-
binding report from the Ministry of Finance to be issued within ten days of the request.
It is hereby certified in accordance with the provisions of article 19.5. of Law 40/2015, of 1
October,
on the Legal Regime of the Public Sector, in relation to article 9.9 of the ICO's Bylaws, which has
not yet approved the Minutes of the session of 22 April 2024.
For the record, to all appropriate purposes, this certification is issued in Madrid on the date of
electronic signature.
Seen and approved by:
THE
CHAIRMAN,
José Carlos García de Quevedo Ruiz
STATEMENT OF RESPONSIBILITY
OF THE ANNUAL FINANCIAL REPORT
José Carlos García de Quevedo Ruiz, Chairman of Instituto de Crédito Oficial,
declares that, to the best of his knowledge, the individual and consolidated
annual accounts for 2023, drawn up on March 26, 2024, in accordance with the
applicable accounting principles, give a true and fair view of the net worth,
financial position and results of Instituto de Crédito Oficial and of the companies
included in the consolidation taken as a whole, and that the management
reports, both individual and consolidated, include a true and fair analysis of the
evolution and business results and of the position of Instituto de Crédito Oficial
and of the companies included in the consolidation taken as a whole, along with
a description of the main risks and uncertainties they face.
Madrid, April 24, 2024
José Carlos García de Quevedo Ruiz
Chairman of the Instituto de Crédito Oficial