• Investors have requested 22,700 million euros and 7,000 million have been placed, with a return of 5.403%
  • More than 60% has been awarded to non-resident investors

The Treasury has made a syndicated issue of its new 10-year reference, maturing on January 31, 2023 and a coupon of 5.40%. The return on the issue was 5,403%, equivalent to 365 basis points above the rate mid-swap (interbank market for interest rate swaps) and 26 basis points on the profitability of its benchmark previous (5.85% January 2022), which, since it already has a residual life of 9 years, must be quoted at a lower return.

The operation has been an unprecedented success. The final demand, which has fluctuated throughout the day, has exceeded 22,700 million euros distributed among more than 350 investment accounts. This is the highest figure obtained in a syndicated operation in the history of the Treasury. The volume issued was 7,000 million euros, in line with two 10-year issues made in 2009.

The mandate to the placement bank union was announced the previous day in order to alert investors to the possible operation. At the same time, the Public Treasury took advantage of the good demand observed in the Treasury Bill market and decided to combine the syndication with the Treasury Bill auction at 3 and 6 months. By auctioning a much lower amount than the demand (2,784 million euros, compared to a demand of 11,119 million, at rates much lower than those of the last auction in December) a good execution was ensured for the syndicated operation that has just closed.

The huge demand has allowed the Treasury to allocate the issue among high-quality investors. The final allocation has been highly diversified by geographical area and by type of investor. Non-resident investors have had a very prominent participation in the issue, with more than 60% of the total bond allocation. UK-based investors have had the largest foreign share at 26%. The countries of the Euro Zone have had a 17% share, the Scandinavian countries 7%, the Middle East 3% and investors from the American continent have obtained 3% of the total issue. By type of investor, the largest share was held by fund managers with 40% of the issue, followed by bank treasuries with 34%, insurers and pension funds with 13% and central banks with 7%.

With this issue of 7,000 million euros, pending the second round of today's Treasury Bill auction, the Treasury plans to close the month of January 2013 with a total issue of around 27,000 million euros.

The Treasury demonstrates with this operation that it enjoys full access to the market in the longest sections of its curve and at sustainable rates. Capital markets trust large Spanish issuers, as also demonstrated by the successful financing operations of banks and companies.

Barclays, BBVA, Citigroup, Goldman Sachs, Santander and Société Générale CIB have acted as directors of this issue. The rest of the group of Market Makers of State Bonds and Obligations have acted as co-leaders.



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