• Investors have requested 11,270 million of this instrument, with a highly diversified demand
  • Real profitability stands at 0.248% and meets the objective of reducing the cost and lengthening the average life of the debt
  • The participation of non-resident investors has reached 74.4% of the syndication
  • 91.3% of the forecast for the entire year has been captured in medium and long-term debt

The Public Treasury has launched the second instrument of its program of securities indexed to European inflation using the technique of bank syndication. The new 5-year reference expires on November 30, 2019 and a real coupon of 0.55%. The real yield on the issue was 0.248%, 13.8 basis points lower than that of the comparable Italian bond. Demand has been 11,270 million euros and 5,000 million euros have been placed.

Through this new issue of inflation-indexed bonds, the Public Treasury is positioned as a regular issuer of this type of financial asset, which allows it to diversify its investment base and contribute to reducing the cost of medium and long-term financing of Debt.

The final demand has come from more than 165 investment accounts and has been highly diversified both by type of investor and by geographical area. The participation of non-resident investors has reached 74.4% of the syndication, which has been much more diversified than in previous syndicated issues. The participation of the United Kingdom and Ireland stands out (17.6%), followed by France (15.9%) and the Asian continent (11.3%). Based on the type of investor, fund managers have acquired 38.9% of the total, followed by banks with 20.9%, insurers and pension funds that have participated with 19% and official institutions, with 11 , 9% of the total.

With this issue, the Treasury accumulates 192.7 billion euros raised, of which 118,010 are part of the medium and long-term financing program, 91.3% of the forecast for this year. This will allow the Public Treasury to modulate the issuance of shorter-term instruments during the fourth quarter. With this, it fulfills the task of carrying out efficient risk management of refinancing and of lengthening the average life of its outstanding portfolio. The Public Treasury once again demonstrates the confidence of the capital markets in the large Spanish issuers.

Banco Bilbao Vizcaya Argentaria, BNP Paribas, Citi, Caixabank, J.P. Morgan 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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