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

The Public Treasury has launched the first issuance of its program of securities indexed to European inflation through a bank syndication. The program has begun with the introduction of a new 10-year reference, expiring on November 30, 2024 and a real coupon of 1.80%. The real profitability of the issuance has been 1,835%, slightly lower than that of the Italian bond indexed to European inflation due in September 2024. The demand has been 20,300 million euros and 5,000 have been 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 assets. The objective is to diversify its investment base, extend the average life of the outstanding State debt and reduce financing costs in the medium and long term.

The final demand, coming 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 very diversified both by type of investor and by geographical areas.

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

Based on the type of investor, the largest share 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 issue of 5,000 million euros, the Treasury has received 103,500 million, of which 68,100 million are part of the medium and long-term financing program. This figure represents more than 51% of the emission 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 capital markets in 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 Creators of Bond Market and Obligations of the State has acted as co-leaders.



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