• 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 emission for that year next year
  • 65.2% of the medium and long-term emission forecast for this year is covered by the operation

The Public Treasury has made a syndicated issuance of a new reference to ten, expiring on October 30, 2024 and a coupon of 2.75%. The profitability of the issuance has stood at 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 expired 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 these, 3,662 million come from the exchange.

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

Within the operation, investors have been offered the possibility of paying the new ten-year State Obligation both in cash and upon delivery of certain State Bonds due in 2015. Thus, in addition to having carried out the issuance by syndication of a new reference benchmark after ten years, partial amortization will take place through voluntary exchange of certain State Bonds with maturity in 2015. This operation not only favors the placement of the new reference, but also facilitates the reinvestment of the amortized values ​​and reduces the volume in circulation to the maturities in the next year, reducing the gross issuance needs of the Treasury for 2015.

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

Of the total amount of the issuance, 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 come to the exchange, there are 45% of resident investors, 33% of the United Kingdom, 10% of France, 10% of the United States and 2% of other countries in the Euro Zone. Based on the type of investor, 81% of the investors who have extended the term of their State Debt holdings are banks and 13% are leveraged funds.

In addition, 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%), United States (7%) and Benelux (5%). By type of investor, fund managers have obtained 39% of the issue; banks 38%; pension and insurance funds 11% and Central Banks 6%.

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

With this operation, the Public Treasury has once again demonstrated the confidence of capital markets in large Spanish, public and private issuers. In addition, it has contributed to the maintenance and lengthening of the average life of the outstanding debt portfolio of the State 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 Creators of Bond Market and Obligations of the State have acted as co-leaders.

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