• 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 profitability is 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 Public Treasury has launched its fifth reference of values ​​indexed to European inflation through the banking 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 extend the average life of the State Debt portfolio.

The new reference to 10 years becomes the new ‘benchmark’ at that time, with a maturity on November 30, 2027 and a real coupon of 0.65%. The real profitability of the issue was 0.733%, 65 basis points below the Italian equivalent term bond. A total of 5,000 million euros has been issued, with a very high demand that has exceeded 16,400 million.

Thanks to this strong demand, the Treasury has been able to allocate the issuance among high-quality investors from 163 investment accounts, widely diversified by type of investor and geographical areas.

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%.

Based on the type of investor, the largest share has corresponded to fund managers and banks, with 30.9% each. Pension and insurance funds 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 issuance, the Treasury has fulfilled 43.8% of its 2017 medium and long-term issuance program. Following the issuance, 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 Creators of the Bond Market and Obligations of the State has acted as co-directors.

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