• Investors requested 20.3 billion of this instrument, which is issued for the first time in Spain
  • The real return stands at 1,835% and 73% has been allocated to non-resident investors, especially from European countries

The Treasury has launched the first issue of its European inflation-indexed securities program through bank syndication. The program has started with the putting into circulation of a new 10-year reference, with maturity on November 30, 2024 and a real coupon of 1.80%. The real return on the issue was 1.835%, slightly lower than that of the Italian bond indexed to European inflation maturing in September 2024. Demand was 20.3 billion euros and 5,000 were placed.

As explained in the 2014 Treasury Financing Strategy, the Public Treasury intends, in the medium term, to position itself as a regular issuer of this type of financial asset. The objective is to diversify its investment base, lengthen the average life of the outstanding State debt and reduce financing costs in the medium and long term.

Final demand, from more than 270 investment accounts, has reached 20.3 billion euros, the largest order book in a syndicated operation indexed to European inflation. The volume issued has been 5,000 million euros. The Treasury has been able to allocate the issue among quality investors. The placement has been highly diversified both by type of investor and by geographical area.

The participation of non-resident investors has reached 73% of the syndication. Of the foreign countries, France has had the highest participation with 21%, followed by the United Kingdom and Ireland with 15%, the Nordic countries with 8% and Italy with 6%.

According to the type of investor, the largest participation has corresponded to fund managers with 41% of the total, followed by banks with 21%, insurers and pension funds that have participated with 16% and central banks, with 8 % of the total.

With this € 5 billion issue, the Treasury has raised € 103.5 billion, of which € 68.1 billion is part of the medium and long-term financing program. This figure represents more than 51% of the issuance forecast for the whole year including the Public Treasury Financing Program (133.3 billion euros). The Public Treasury has once again demonstrated the confidence of the capital markets in the large Spanish issuers.

Banco Santander, Barclays Bank, BNP Paribas, Caixabank, Deutsche Bank and Société Générale have acted as directors of this issue. The rest of the group of State Bond and Bond Market Makers has acted as co-leaders.

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