- The issue has had a demand of more than 52,000 million, the highest received by any public or private issuer since the creation of the single currency
- The interest rate was the lowest in a 10-year Spanish syndication, it stood at 0.525% and represents a reduction of more than 10 basis points compared to the last issue to this term in June 2019
- The participation of non-resident investors has reached 73.9%
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The high demand, the low interest rate and the high participation of international accounts show investor confidence in the strength of the Spanish economy.
The Public Treasury has made a syndicated issue of a new 10-year bond for an amount of 10 billion euros. Applications have exceeded 52,000 million euros, the highest demand for an issue in euros. Since the creation of the single currency, no public or private issuer has registered a similar volume of requests for an issue of this nature.
The transaction was closed with the lowest interest rate of a 10-year Spanish syndication, standing at 0.525%, having been reduced by more than 10 basis points compared to the last issue of these characteristics carried out last June.
In this high demand, the high participation of non-resident investors stands out, reaching 73.9%, as well as the number and quality of orders received, which have allowed the distribution of 10,000 million among 347 highly diversified accounts, both by type of investor as per geographical area.
The high demand, the low interest rate and the quality of the orders show the confidence that investors continue to maintain in the strength of the Spanish economy.
Distribution
The securities mature on April 30, 2030, have a coupon of 0.50% and an interest rate of 0.525%, equivalent to 32 basis points above the mid-swap rate (reference rate of the interbank exchange rate market). of interest).
Among investors, the participation of the United Kingdom and Ireland stands out, with 26.3%; followed by France and Italy, with 20.5%; the whole of Germany, Austria and Switzerland, 11.3%; other European countries 11.3%; United States and Canada, with 3.3%. The rest of the regions have obtained 1.3% of the issue.
Considering the type of investor, the largest participation has corresponded to fund managers, with 37.5%; followed by bank treasuries, with 26.2%; insurers and pension funds, with 24.3%; central banks and official institutions, with 3.4%; and leveraged funds, with 3.0%. Other investors have represented 5.6%.
With this first syndication in 2020, the Treasury has executed 13.3% of its medium and long-term issuance objective for the entire year (117,469 million euros).
BBVA, Citigroup, HSBC, JP Morgan, Santander and Société Générale have acted as directors of this issue. The rest of the group of State Bond and Bond Market Makers have acted as co-directors.