- 2015 closes with the lowest issuance costs and outstanding debt in history and the lengthening of the average life
- Non-segregated debt holdings held by non-resident investors stood at 53.5% of the total
The Public Treasury has set as a target for 2016 a net issue of 45,000 million euros, a figure 9.1% lower than that foreseen in the General State Budgets for next year. Of this amount, the majority (41,000 million) will be long-term issues and the rest, Treasury Bills. In the year as a whole that now ends, net issuance has also been lower than forecast 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 issue stood at 47,717 million euros, 7,283 million less than initially expected, at a cost of 0.84% (3.14% for the total outstanding debt) and a lengthening of life average until 6.45 years. Debt held by non-residents accounts for 53.5% of the total.
The progressive reduction of the public deficit allows less appeal to the market in recent years, from the highs reached in 2012. In 2015, the net issuance of the Treasury stood at 47,717 million euros, half compared to that carried out four years ago. years. The 45,000 million foreseen for 2016 represent an additional reduction of 5.7%. The gross issue is also down in these years. It goes from 236,817 million euros at the end of 2015, to the 226,694 expected for 2016. In the next year, most of the net issue will focus on the long term (41,000 million), and if maturities are included, the distribution It will be 125,301 million in the medium and long term and 101,393 in Treasury Bills.
Financing of the Treasury in 2015
Financing of the Treasury in 2016
Most of the 236,817 million gross financing in 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 syndication of State Obligations. The syndication makes it possible to diversify the placement of bonds geographically and by type of investor, while providing new liquidity benchmarks in global markets. Two new 10-year State Obligations references have been issued using this technique, for a total amount of 14,000 million euros, a 15-year State Obligations reference for the amount of 7,000 million euros and a reference of State Obligations to 15 years linked to inflation in the Euro Zone for an amount of 3,500 million euros. The Euro Zone inflation-indexed State Bonds and Obligations program, launched in 2014, became part of the regular auctions 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 auctions.
Graph 1: Average cost of Debt outstanding and issuance
Graph 2: Average life of the State Debt in circulation
In 2015, the Treasury also managed to reduce the cost and risk of the State Debt portfolio. The average cost of issuing State Debt has decreased from 1.52% in 2014 to 0.84% in 2015. This has had an impact on a lower average cost of State Debt in circulation, which has gone 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. From 2013 the average life of the outstanding Debt increases. This trend has intensified in 2015, the year in which it has gone from an average life of 6.28 years to 6.45 years.
Holdings of non-segregated State Debt held by non-resident investors stood at the end of November 2015, the latest available data, at 418,738 million euros, 53.5% of the total registered portfolio. This figure 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 through regular auctions of State Bonds and Obligations and Treasury Bills. Occasionally, alternative issuance methods may be used, such as bank syndications, private placements or special auctions.
