- The amount requested has exceeded 46,500 million euros, the highest received by a sovereign, sub-sovereign, supranational or regional issuer since the creation of the single currency
- The high demand shows the confidence of international investors in the strength of the Spanish economy
- Trust corroborated by Asian investors, among which 11.8% of the transaction has been distributed, the largest share of this region in a Treasury syndication since July 2010
- 10,000 million euros have been awarded among 410 high-quality and highly diversified investment accounts
The Public Treasury has made a syndicated issuance of a new 10-year bond worth 10,000 million euros. The requests have exceeded 46,500 million euros, the largest demand in the history of a public issuer in euros. Since the creation of the single currency, no sovereign, sub-sovereign, supranational or regional issuer has registered a similar volume of requests for an issuance of these characteristics.
This high demand highlights the confidence of international investors in the strength of the Spanish economy and reinforces the role of the Public Treasury as a reference issuer.
Both aspects have been corroborated by the participation of non-resident investors, which has reached 81.6% of the syndication, thus consolidating the progressive recovery of accounts that in recent years did not participate in public debt purchases. We must highlight the significant demand of Asian investors, among which 11.8% of the transaction has been distributed, the largest share in a Treasury issue since July 2010.
France and Italy also stand out, with 18.8% of the operation; United Kingdom and Ireland; with 15.9%; Germany, Austria and Switzerland, with 10.5%; Nordic countries, with 9.1%, the United States and Canada, with 6.5%, and others, with 9.2%.
It is also especially significant not only the solid demand but also the quality of the orders received. Thus, the Treasury has been able to allocate the issuance among 410 highly diversified accounts, both by type of investor and by geographical areas.
Based on the type of investor, the largest share has corresponded to pension and insurance funds (24.6%) followed by bank treasuries (23%), fund managers (22.4%) and central banks and official institutions (14, 4%). Other bank investors acquired 8.7%, leveraged funds 5% and other investors 2%.
The bond issued today expires on April 30, 2029 and has a coupon of 1.45%. The profitability of the issuance has been 1,462%, equivalent to 65 basis points above the mid-swap rate (reference rate of the interbank market for interest rate swaps).
With this first syndication of the 2019 financial year of 10,000 million euros, the Treasury has achieved 15.8% of its medium and long-term issuance objective for the entire year (126,933 million euros).
Banco Bilbao Vizcaya Argentaria, S.A., Citigroup Global Markets Limited, Credit Agricole CIB, HSBC France, J.P. Morgan Securities Plc and Société Générale have acted as directors of this issue. The rest of the group of Creators of the Bond Market and Obligations of the State have acted as co-directors.