The Treasury releases the largest syndicated bond in the history of the capital market with the highest demand received by a public or private issuer.

21/04/2020
Photo Ministry of Economy, Industry and Competitiveness
  • 15 billion euros have been issued from a 10-year syndicated bond.
  • Demand has exceeded 96.5 billion, the highest received by a public or private issuer for a single reference.
  • The participation of non-resident investors has exceeded 79% of the total issue, which demonstrates the confidence of investors in the future of the Spanish economy.
  • This issue is part of the Treasury strategy to finance various measures approved to tackle the economic and social consequences of COVID-19.
  • El coste de la deuda en circulación registra un nuevo mínimo histórico y se sitúa en el 2,04%.
    • The Treasury has made a syndicated issuance of a new 10-year bond worth 15 billion euros, the largest amount issued in a reference in the history of the capital market. Despite the global financial volatility, demand exceeded 96.5 billion euros, the highest received by any public or private issuer for a single reference.

    April 22, 2020.- The Treasury has made a syndicated issuance of a new 10-year bond in the amount of 15 billion euros, the largest amount issued in a reference in the history of the capital market. Despite the global financial volatility, demand exceeded 96.5 billion euros, the highest received by any public or private issuer for a single reference.

    This high demand highlights the confidence of international investors and strengthens the role of the Public Treasury as a reference issuer.

    Especially significant is the demand from non-resident investors, which has reached 79.2% of the syndication. Of this percentage stands out the participation of the United Kingdom and Ireland with 33.3%, France and Italy with 15.6%, Germany, Austria and Switzerland with 11.8%, the Scandinavian countries with 5.2%, and other European investors with 5.1%. For its part, Asia has participated with 2.6% of the transaction, a similar percentage to the Middle East, the United States and Canada with 2.5%, and other investors have obtained 0.6% of the issue.

    The demand has been divided between 560 investment accounts, very diversified both geographically and by investor typology.

    According to the type of investor, the largest share was held by fund managers with 41.3%, followed by bank treasuries with 19.5%, insurers and pension funds with 12.10%, and other banking services with 10%. Central banks and official institutions have participated with 7%, leveraged funds with 6.3%, and other investors have accounted for 3.9%.

    The bonus issued today expires on October 31, 2030 and has a coupon of 1.25%. Profitability stood at 1,306%, equivalent to 17 basis points above the current 10-year reference (the State Obligation due in April 2030).

    To deal with the COVID-19 virus, and in order to alleviate its economic consequences, the Public Treasury is proactively accelerating its financing program: with this syndication of 15 billion euros the Treasury has issued a total of 116,648 million euros so far this year, at a cost of 0.32%. For its part, the average life of the State’s debt in circulation reaches 7.74 years, and the average cost of the Treasury’s portfolio of securities is at the historical minimum of 2.04%.

    Banco Santander, Barclays, BNP Paribas, Citigroup, HSBC and JPMorgan have acted as directors of this issue. The rest of the group of Bond and Bond Market Creators of the State have acted as co-directors.