- The amount awarded amounts to 4,000 million euros with a return of 5.213%
- More than 65% of the placement has been made among non-resident investors
- The Treasury already covers 90.1% of the medium and long-term issuance forecast for the whole year
The Public Treasury has made a syndicated issue of a new 30-year reference, maturing on October 31, 2044 and a coupon of 5.15%. The return on the issue was 5.213%, equivalent to 250 basis points above the mid-swap rate (interbank market for interest rate swaps), with a concession of only 15 basis points on the Spanish bond plus close (reference with maturity in July 2041 and coupon of 4.70%).
The Treasury has not issued a 30-year syndicated bond since September 2009, so today's placement involves recovering a long-term financing instrument and diversifying the investment base. The issuance of this new 30-year bond follows that of 15-year securities last July, and like that one, it has been met with resounding success.
The Treasury announced the intention to make this issue on Monday, October 8, in order to warn investors about the imminence of an operation of this nature. The final demand, from more than 230 investment accounts, has exceeded 10.6 billion euros. The volume issued has been 4,000 million euros. The Treasury plans to regularly reopen this reference through auctions.
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 type of investor and by geographical areas. The participation of non-resident investors has reached 65% of the syndication. Of this percentage, investors residing in the United Kingdom are 28%, the USA 10%, the Nordic countries 8%, Germany 6%, France 4%, the rest of the Eurozone (6%), Switzerland (2%) and others. (one%).
Looking at the type of investor, the largest share has been in insurance companies and pension funds, with 32%, followed by fund managers with 30%, banks with 23%, leveraged funds with 9%, central banks (4% ) and others (2%).
With this operation, the Treasury has made issues for a total of 191,240 million euros so far this year, of which 109,250 are part of the regular medium and long-term financing program. This figure represents 90.1% of the issuance forecast for the whole year, including 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, Banco Santander, Barclays Bank, BNP Paribas, Caixabank and Citigroup 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.