• The amount awarded amounts to 7,000 million, with a profitability of 4.452%
  • More than 48% has been allocated to non-resident investors
  • Covered 54% of the medium and long-term emission forecast for the whole year

The Public Treasury has made a syndicated issue of a new 10-year reference, maturing on October 31, 2023 and a coupon of 4.40%. The return on the issue was 4.452%, equivalent to 278 basis points above the mid-swap rate (interbank market for interest rate swaps) and almost 100 basis points below the return on past syndication. January 22 (obligation with coupon 5.40% and maturity in January 2023).

The operation closed today has been a success, both in terms of volume of demand and profitability. The final demand, coming from more than 250 investment accounts, has exceeded 21,500 million euros. The volume issued has been 7,000 million euros, at the maximum level among all the references to ten years syndicated by the Public Treasury.

The Public Treasury decided to combine the auction held today for Treasury Bills at 6 and 12 months with the syndication of this new reference. Thus it gave a mandate to the syndicate of placement banks that was announced on Monday, May 13, in order to warn investors about the imminence of such an operation.

The high demand has allowed the Treasury to allocate the issue among 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 48% of the syndication. Of this percentage, investors from outside the euro zone have had the largest foreign participation. The United Kingdom stands out with 17%, Asia and the Middle East with 9%, the Scandinavian countries with 4% and the United States with 2%. The rest, 16%, corresponds to European investors.

Considering the type of investor, the greatest participation has corresponded to fund managers with 42% of the total, followed by bank treasuries with 34% and insurance companies and pension funds that have participated with 14%. Finally, central banks have participated with 8% of the total.

With this issue of 7,000 million euros, still pending the second round of today's Letters auction, the Treasury has made issues for a total of 108,500 million euros, of which 65,000 are part of the medium and long-term financing program term. This figure represents 53.6% of the issuance forecast for the entire year, including the Public Treasury Financing Program (121.3 billion euros).

The Public Treasury has once again demonstrated full market access in the longest sections of its curve at sustainable rates, as well as the confidence of the capital markets in the large Spanish, public and private issuers.

Banco Santander, Barclays Bank, Caixabank, Citigroup, Deutsche Bank, and Goldman Sachs 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.

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