- 2015 closes with the lowest issuance and outstanding debt costs in history and the lengthening of the average life
- Holdings of non-segregated debt held by non-resident investors are 53.5% of the total
The Public Treasury has set a net issuance of 45,000 million euros for 2016, which is 9.1% lower than that foreseen in the General State Budget for next year. Of this amount, most (41,000 million) will be long-term issues and the rest, Treasury Bills. In the whole year that now ends, the net issuance has also been lower than expected at the beginning of the year, with the lowest issuance and outstanding debt costs in history and a lengthening of the average life. Specifically, the net issuance stood at 47,717 million euros, 7,283 million less than initially planned, at a cost of 0.84% (3.14% for total outstanding debt) and a lengthening of life average up to 6.45 years. The debt held by non-residents accounts for 53.5% of the total.
The progressive reduction of the public deficit allows a lower appeal to the market in recent years, from the maximum reached in 2012. In 2015 the net issuance of the Treasury stood at 47,717 million euros, half compared to the one carried out four years. The 45,000 million planned for 2016 represent an additional 5.7% reduction. Gross emission is also reduced in these years. It goes from 236,817 million euros at the end of 2015, to the 226,694 planned for 2016. In the next year, most of the net issuance will focus on the long term (41,000 million), and if maturities are included, distribution It will be 125,301 million in the medium and long term and 101,393 in Treasury Bills.
Treasury financing in 2015
Treasury financing in 2016
Most of the 236,817 million gross financing of 2015 has been obtained in 48 auctions, 24 of State Bonds and Obligations and 24 of Treasury Bills. The rest of the emissions program has been covered by four State Obligations unions. The syndication makes it possible to diversify geographically and by type of investor the placement of bonds while providing new liquidity references in global markets. Two new references of State Obligations to 10 years, for a total amount of 14,000 million euros, a reference of State Obligations to 15 years amounting to 7,000 million euros and a reference of Obligations of the State have been issued through this technique. 15 years linked to the inflation of the Euro Zone in the amount of 3,500 million euros. The inflation-indexed State Bonds and Obligations program of the Euro Zone, opened in 2014, has become part of the regular auction program in 2015.
The auctions have enjoyed good demand, as reflected in the high coverage ratios, 2.27 on average in the Bonds and Obligations auctions and 2.42 in the Letters.
Figure 1: Average cost of outstanding and issuing debt
Graph 2: Average life of the outstanding State Debt
In 2015, the Treasury has also reduced the cost and risk of the State Debt portfolio. The average cost of issuing the State Debt has fallen from 1.52% in 2014 to 0.84% in 2015. This has affected a lower average cost of the outstanding State Debt that has increased from 3 , 47% at the end of 2014 to 3.14% at the end of 2015. Both figures are the lowest in the history of the Treasury. As of 2013, the average life of the outstanding Debt increases. This trend has intensified in 2015, the year in which it has gone from a half-life of 6.28 years to 6.45 years.
The non-segregated State Debt holdings held by non-resident investors were at the end of November 2015, the latest available data, at 418,738 million euros, 53.5% of the total registered portfolio. This data contrasts with the minimum recorded in 2012, the year in which the portfolio registered in the hands of non-resident investors stood at 191,836 million euros.
The emission schedule for 2016 is as follows:
Auction Calendar in 2016 and January 2017
The bulk of the program will be executed by holding ordinary auctions of State Bonds and Obligations and Treasury Bills. Occasionally, alternative issuance methods may be used, such as bank syndicates, private placements or special auctions.
