- The profitability has stood at 1.071%, the lowest in a 30-year syndication, with a reduction of more than 165 basis points compared to the last syndicated issue to this term, carried out in February 2018.
- The participation of international accounts has reached a record level of 90.7%
- Insurers and pension funds, very high quality investors, have registered the highest percentage of subscription obtained in a Treasury syndication, with 56.7%
- The high participation and quality of investors and the lower interest rate show investor confidence in the strength of the Spanish economy.
The Public Treasury has made a syndicated issue of a 30-year bond for an amount of € 5 billion. The transaction was closed with the lowest interest rate of a Treasury syndication for this term, standing at 1.071%, which represents a reduction of more than 165 basis points compared to the last issue of these characteristics carried out in February 2018.
Demand has reached 17,936 million euros, distributed among 172 accounts. It is worth noting the high participation of non-resident investors, which has reached a record level of 90.7%. Likewise, the high quality of the orders received has allowed 56.7% of the issue to be distributed among insurers and pension funds, which represents the highest percentage granted to this type of account in Treasury syndications.
The high participation of international investors, the high quality of demand and the low interest rate demonstrate the confidence that investors maintain in the strength of the Spanish economy.
Distribution
The securities mature on October 31, 2050, have a coupon of 1% and a return of 1.071%. These levels are equivalent to 86 basis points above the mid-swap rate (reference rate of the interbank market for interest rate swaps).
Among non-resident investors, the participation of France and Italy stands out with 36.1%, followed by the whole of Germany, Austria and Switzerland with 25.9% and the United Kingdom and Ireland with 14.2%. Other European countries have participated with 9.3%, of which 3.2% correspond to the Scandinavian countries. It is followed by the Middle East region with 3.1%, and the United States and Canada with 2%. The rest of the regions have obtained 0.1% of the issue.
Considering the type of investor, the largest participation has corresponded to insurers and pension funds with 56.7%, followed by fund managers with 20%, and banking entities with 17.6%. Central banks and official institutions have obtained 3% and leveraged funds 2.5%.
With this second syndication for the year 2020, the Treasury has executed 32.2% of its medium and long-term issuance target for the entire year (117,469 million euros).
Barclays, BBVA, BNP Paribas, Crédit Agricole, JP Morgan and Santander have acted as directors of this issue. The rest of the group of State Bond and Bond Market Makers have acted as co-directors.