• Demand exceeds 16.4 billion euros, with more than 62.7% of high-quality non-resident investors
  • The real coupon is 0.65% and the real return stands at 0.733%, 65 basis points below the Italian bond.
  • With this new reference, the Treasury consolidates its commitment to the inflation-indexed emissions program

The Treasury has launched its fifth benchmark for European inflation-indexed securities using the bank syndication technique, consolidating its commitment to the European inflation-indexed securities program that began in 2014, with the aim of diversifying its sources of financing and lengthen the average life of the State Debt portfolio.

The new 10-year benchmark becomes the new benchmark for that term, with a maturity of November 30, 2027 and a real coupon of 0.65%. The real yield on the issue was 0.733%, 65 basis points below the Italian equivalent term bond. A total of € 5 billion has been issued, with very high demand that has exceeded € 16.4 billion.

Thanks to this solid demand, the Treasury has been able to allocate the issue among high-quality investors from 163 investor accounts, highly diversified by type of investor and by geographical area.

The participation of non-resident investors has reached 62.7% of the syndication. Of this percentage, the participation of the United Kingdom and France stands out, with 25.3% and 14% of the issue, respectively. The Nordic countries participated with 4.4% and the rest of Europe with 10.1%. The United States and Canada have participated with 8.9%.

Looking at the type of investor, the largest participation has corresponded to fund managers and banks, with 30.9% each. Pension funds and insurers participated with 13.9% of the total, followed by central banks and official institutions, with 13.6%, and leveraged funds, with 10.7%.

With this syndicated issue, the Treasury has fulfilled 43.8% of its 2017 medium and long-term issuance program. After the issue, the average life of the State Debt portfolio will be 7.06 years.

BNP Paribas, CaixaBank, Citi, HSBC, Morgan Stanley and Société Générale have acted as directors of this issue. The rest of the group of Market Makers of State Bonds and Obligations has acted as co-directors.

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