- The interest rate has been located at 1,864%, the lowest in history in a 15-year syndication, with a reduction of more than 50 basis points compared to the last 15-year issue made in February 2017
- Demand has exceeded 43.4 billion euros, the largest in the history of the Eurozone at that time
- The confidence of international investors in the strength of the Spanish economy is maintained
- The Treasury has awarded 5,000 million euros among 466 very high quality and highly diversified investment accounts, with an international investment share that reaches 83.1%
The Public Treasury has made a syndicated issuance of a new 15-year bond for 5,000 million euros. The securities, which expire on July 30, 2035, have a coupon of 1.85% and an interest rate of 1,864%, the lowest in history in a Treasury operation at this time. These levels mean a reduction in profitability of more than 50 basis points compared to the previous 15-year syndication, held in February 2017.
The demand has reached 43.461 million euros, the greatest demand in a syndication of any European sovereign to 15 years. 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.
Thus, the operation has been overwritten more than 8.5 times, allowing the issuance of 466 investment accounts of very high quality, very diversified both by type of investor and by geographical area.
Trust of international investors
Both high demand and reduced profitability highlight the confidence of international investors in the strength of the Spanish economy. Confidence that is corroborated by the reduction of the financing costs of the Treasury that decrease in the first two months of the year to stand at 0.62% on average.
The participation of non-resident investors has reached 83.1% of the issue. Of this percentage, investors from Germany, Austria and Switzerland have participated with 20.7%; France and Italy with 19%; United Kingdom and Ireland, with 18.7%; Nordic countries, with 10%; other EU countries, with 6.8%; USA and Canada, with 4.2%; and the rest of the world, with 3.7%.
By type of investor, the largest share has corresponded to insurance companies and pension funds, with 31.1%; followed by fund managers, with 30.2%; banking entities, with 23.6%; leveraged funds, with 6.7%; central banks and official institutions, with 3.4%. Other investors have participated with 5%.
With this second syndication of 2019, the Treasury has completed 27.2% of its medium and long-term issuance program planned for the entire year (126,933 million euros).
Banco Santander, Barclays Bank, Goldman Sachs, HSBC, Morgan Stanley and NatWest Markets have acted as directors of this issue. The rest of the group of Creators of Bond Market and Obligations of the State have acted as co-leaders.
