The Spanish Public Treasury has placed 13,000 million euros this Wednesday in a new ten-year syndicated bond, which has received a high demand of 85,000 million euros, one of the highest registered by the organization in its history. The bond issued this Wednesday matures on October 31, 2033 and has a coupon of 3.55%. The profitability has been located at 3.556%, equivalent to 10 basic points above the real reference to 10 years, with a shorter maturity in April 2033, as indicated by the Ministry of Economic Affairs in a statement.
The support of investors has allowed the price of the issue to be lowered since, after starting with a differential of twelve basic points over the auctioned reference, it has finally been reduced to ten, according to Bloomberg data compiled by EFE. Ministry sources have stressed that the significant demand registered in the bid continues to show the good access of the Spanish Treasury to the capital markets in a context of lesser presence of the European Central Bank (ECB).
Likewise, “it reflects the confidence of investors in the development and evolution of the Spanish economy, which is also reflected in the positive evolution of the Spanish risk premium, which has fallen in recent days and stands below s 100 basic points”. Non-resident investors, the statement details, have accounted for 86.9% of the total, with a notable presence of those based in the United Kingdom and Ireland, 41.8%, France and Italy, 17.2%, and, further afield , Germany, Austria and Switzerland, 5.4%.
Outside of Europe, those from the Middle East have obtained 3.8% of transactions, the US and Canada, 1.2%; and Asia, 0.4%.
Average life of government debt
Currently, the average life of outstanding government debt is 7.92 years and the average cost of the securities portfolio is 1.938%. With today’s, it has already held three syndicated auctions in the year, in which banks directly place the debt among investors. The last one was on February 21, when it raised 5,000 million euros in a new fifteen-year bond, with a demand of more than 30,500 million.
The first syndicated issue of the year was on January 25, and on that occasion Spain placed 13,000 million in a new ten-year bond. On that occasion, the demand was 86,133 million, the second largest in the history of the institution.