• The amount awarded amounts to 3,500 million with a return of 5.194%
  • More than 54% has been allocated to non-resident investors
  • The Treasury has already covered 70.3% of the medium and long-term issuance forecast for the entire year

The Public Treasury has made a syndicated issue of a new 15-year reference, maturing on October 31, 2028 and a coupon of 5.15%. The return on the issue was 5.194%, equivalent to 280 basis points above the mid-swap rate (interbank market for interest rate swaps), with a concession of only six basis points on the secondary market.

The transaction closed today has been a resounding success, since the Treasury has not issued 15-year union bonds since March 2011 (reference maturing in July 2026 and coupon 5.90%). It involves recovering a new long-term financing instrument and diversifying the investment base of the State Debt. The final demand, coming from more than 130 investment accounts, has exceeded 7,500 million euros. The volume issued has been 3,500 million euros, with a very good reception in the secondary market. The Treasury plans to regularly reopen this reference through auctions.

The Treasury announced yesterday the intention to make this issue, in order to warn investors about the imminence of an operation of this nature.

The high demand has allowed the Treasury to allocate the issue among very high quality investors; that is to say, of a very diversified typology both by investor profile and by geographical areas. The participation of non-resident investors has reached 54.5% of the syndication. Of this percentage, foreign investors in the Euro Zone have obtained 18.31% of the issue; United Kingdom, 18%; USA, 14.4%; the Nordic countries (excluding Finland), 1.86% and Switzerland, 1.53%.

Considering the type of investor, the largest participation has corresponded to insurers and pension funds, with 36%. Other groups have been banks, with 24.2%; fund managers, with 22.4%; leveraged funds, with 13%; and private banking, 3.9%.

With this operation, the Treasury has already made issues this year for a total of 141,300 million euros, of which 85,300 are part of the medium and long-term financing program. This figure represents 70.3% of the issuance forecast for the entire year included in the Public Treasury Financing Program (121.3 billion euros).

The Treasury once again demonstrates that it enjoys full market access at sustainable rates on the longest tranches of its interest rate curve.

Banco Bilbao Vizcaya Argentaria, BNP Paribas, Caixabank, Credit Agricole, Credit Suisse and Société Générale 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