• With this reduction, the expected net issuance will be 30,000 million, the lowest since 2007
  • Gross issuance will fall to 204,526 million euros, 4% lower than in 2018
  • With the new net issuance plan, 42.4% of the medium and long-term financing program has been covered to date

The Public Treasury will reduce by 5,000 million euros the volume of net issuance planned for 2019. The reduction in financing needs will continue, which will remain at 30,000 million, compared to the 35,000 established at the beginning of the year. The expected net issuance for 2019 will be the lowest since 2007.

It also decreases in the same amount the gross emission planned for this year, standing at 204,526 million euros, 4% lower than last year.

This reduction is possible thanks to the lower interest rates, which are allowing to reduce the cost of debt, the good progress of income and the evolution of budget execution, a more efficient management of the Treasury and compliance by Several Autonomous Communities of the fiscal and financial requirements necessary to access market financing and recover their financial autonomy.

The trend of last year is thus maintained, in which the planned net issuance was also reduced by 5,700 million, which meant a saving of 1,500 million in interest payments. A reduction that allowed, however, the early repayment of 8,000 million of the MEDE loan for the recapitalization of the financial system, due to the better financing conditions of the Treasury.

The average cost of outstanding debt is at a minimum

To date, the Public Treasury has placed securities in the amount of 51,652 million euros, which, with the new emission plan, represents more than 42% of the planned medium and long-term issues for the entire year.

The average cost of outstanding debt has continued to decrease in the first months of the year, reaching below 2.4%, constituting a new historical low. Likewise, the average cost of new emissions has also been reduced compared to the end of 2018, standing at 0.6%.

Finally, the average life of outstanding debt is maintained at 7.4 years in 2019, in line with the extension achieved in 2018.

Record demand on emissions

In these first months, the Public Treasury has issued two new references for 10 and 15 year bonds. Both have obtained a record demand for a sovereign bond in euros, in those terms, since the creation of the single currency.

This high demand shows the confidence of international investors in the Spanish economy and reinforces the role of the Public Treasury of the Kingdom of Spain as a reference issuer.



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