- 15,000 million euros of a 10-year syndicated bond have been issued.
- Demand has exceeded 96,500 million, the highest received by a public or private issuer for a single reference.
- The participation of non-resident investors has exceeded 79% of the total issue, which shows the confidence of investors in the future of the Spanish economy.
- This issue is part of the Treasury's strategy to finance various measures approved to tackle the economic and social consequences of COVID-19.
- The cost of outstanding debt registers a new historical minimum and stands at 2.04%.
April 22, 2020.- The Public Treasury has made a syndicated issue of a new 10-year bond for the amount of 15,000 million euros, the largest amount issued in a reference in the history of the capital market. Despite global financial volatility, demand exceeded 96,500 million euros, the highest received by any public or private issuer for a single reference.
This high demand shows the confidence of international investors and reinforces the role of the Treasury as a benchmark issuer.
The demand from non-resident investors is particularly significant, which has reached 79.2% of the syndication. Of this percentage, the participation of the United Kingdom and Ireland stands out with 33.3%, France and Italy with 15.6%, Germany, Austria and Switzerland, with 11.8%, the Scandinavian countries with 5.2% , and other European investors with 5.1%. For its part, Asia has participated with 2.6% of the transaction, similar percentage to the Middle East, United States and Canada with 2.5%, and other investors have obtained 0.6% of the issue.
Demand has been distributed among 560 investment accounts, highly diversified both geographically and by investor type.
According to the type of investor, the largest participation has corresponded to fund managers with 41.3%, followed by bank treasuries, with 19.5%, insurers and pension funds with 12.10%, and other banking services, with 10%. Central banks and official institutions have participated with 7%, leveraged funds with 6.3%, and other investors have represented 3.9%.
The bond issued today matures on October 31, 2030 and has a coupon of 1.25%. The profitability has been 1.306%, equivalent to 17 basis points above the current 10-year benchmark (the State Obligation maturing in April 2030).
To deal with the COVID-19 virus, and in order to alleviate its economic consequences, the Public Treasury is proactively accelerating its financing program: with this syndication of 15,000 million euros, the Treasury has issued a total of 116,648 million euros so far this year, at a cost of 0.32%. For its part, the average life of the State debt in circulation reaches 7.74 years, and the average cost of the Treasury securities portfolio stands at the all-time low of 2.04%.
Banco Santander, Barclays, BNP Paribas, Citigroup, HSBC and JPMorgan have acted as directors of this issue. The rest of the group of State Bond and Bond Market Makers have acted as co-directors.