UPDATE 1-Spain's ICO prices A$200 mln 2012 bond increase

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(Recasts, adds pricing details in second paragraph)

SYDNEY, Jan 14 (Reuters) - Spain's Instituto de Credito
Oficial (ICO) [ICO.UL] has priced a A$200 million ($179
million) increase to its Kangaroo bond issue maturing in 2012,
sole lead RBC said on Monday.

The bonds paid around 14 basis points under swap, according
to a fund manager.

ICO is rated Aaa/AAA/AAA and is guaranteed by the Kingdom
of Spain. It provides financial backing to small and
medium-sized businesses, long-term loans for infrastructure
projects and financial support in cases of economic crisis or
natural disaster.

The deal details are as follows:

Issuer: Instituto de Credito Oficial

Facility: Domestic fixed rate Kangaroo increase

Amount issued: A$200 million

Total on issue: A$1 billion

Maturity: Oct. 11, 2012

Set date: Jan. 25

Coupon: 5.50%

Yield: 7.120%

Margin: +67 bps/April 2012 ACGB

Reoffer price: 93.600

Lead: RBC Capital Markets

Issuer rating: Triple A by all major agencies
($1=A$1.12)
(Reporting by Cecile Lefort)