• Investors have requested 18,500 million euros and 9,000 million have been placed, with a return of 2,800%
  • The exchange against the new reference amounts to 3,662 million, which reduces the gross issue by next year.
  • 65.2% of the medium and long-term emission forecast for this year is covered by the operation

The Treasury has made a syndicated issue of a new reference to ten, maturing on October 30, 2024 and a coupon of 2.75%. The return on the issue was 2,800%, equivalent to 118 basis points above the mid-swap rate (interbank market for interest rate swaps), a return on mid-swap 60 basis points lower than that of the previous syndication (reference maturing on April 30, 2024 and a coupon of 3.80%). The demand has been 18,500 million, 9,000 million have been placed and of them, 3,662 million come from the swap.

The operation has been very well received, both in terms of demand volume and profitability. The final demand, from 290 investment accounts, has exceeded 18,500 million euros. The volume issued was 9,000 million euros, the second highest amount among all the references syndicated by the Public Treasury in its history.

As part of the operation, investors have been offered the possibility of making the payment of the new 10-year State Obligation both in cash and upon delivery of certain State Bonds maturing in 2015. Thus, in addition to having carried out the issue by syndication of a new reference benchmark At ten years, the partial amortization will take place through the voluntary exchange of certain State Bonds maturing in 2015. This operation not only favors the placement of the new reference, but also facilitates the reinvestment of the amortized securities and subtracts outstanding volume from maturities in the next year, reducing the gross issuance needs of the Treasury for 2015.

Of the 9,000 million euros of the new State Obligation issued, 59% has been placed outside of Spain. Of the entire issue, the allocations to the United Kingdom and Ireland (24%), France (9%), and the USA (8%) stand out.

Of the total amount of the issue, 3,662 million have been against exchange, which implies an extension of the term of the State Debt portfolios of existing investors. Among these investors who have attended the swap, there are 45% of resident investors, 33% from the United Kingdom, 10% from France, 10% from the United States and 2% from other countries in the Euro Zone. By type of investor, 81% of investors who have extended the term of their State Debt holdings are banks and 13% are leveraged funds.

Likewise, the Treasury has issued an additional 5,338 million euros to the exchange, of which 62% has been allocated to foreign investors, highlighting the participation of the United Kingdom and Ireland (17%); Germany, Austria and Switzerland (11%); Nordic countries (7%), the United States (7%) and Benelux (5%). By type of investor, fund managers have obtained 39% of the issue; banks 38%; pension funds and insurance companies 11% and Central Banks 6%.

With this issue of 9,000 million euros, the Treasury has made issues so far this year for a total of 126,700 million euros, of which 86,870 are part of the medium and long-term financing program. This figure represents 65.2% of the issuance forecast for the entire year, including the 2014 Treasury Financing Program (133.3 billion euros).

With this operation, the Public Treasury has once again demonstrated the confidence of the capital markets in the large Spanish, public and private issuers. In addition, it has contributed to maintaining and lengthening the average life of the outstanding State Debt portfolio and has reduced the gross financing needs of 2015 by 3,662 million.

Banco Santander, CaixaBank, Citi, Credit Agricole CIB, HSBC and Morgan Stanley have acted as directors of this issue. The rest of the group of Market Makers of Bonds and State Obligations have acted as co-leaders.

Source of the new