The high demand, more than nine times the volume issued, is evidence of investors’ confidence in the Spanish economy.
The Treasury successfully executed its first syndicated issue of the year. It has issued 15 billion euros of a 10-year bond, which has received a demand of 139 billion euros, setting a new demand record for a Treasury issue.
The high demand, more than nine times the amount issued, has allowed the Treasury to reduce the cost of the operation by three basis points over the initially announced spread. As a result, the bond issued today, maturing in April 2035, has a coupon of 3.15% and the yield is 3.18%, lower than the 3.45% coupon of the last 10-year issue in May 2024.
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Treasury issues 15 billion 10-year notes after record demand in the first syndicated issue of the year
The Treasury has begun the 2025 financing programme with solid access to the financial markets, which, together with the high participation of high-quality international investors, is evidence of the strength of Spanish public debt, in a context of quantitative tightening by the European Central Bank, which is gradually reducing its holdings of eurozone countries’ debt. In this context, investors’ confidence in Spain’s economy is particularly relevant, which, together with the government’s commitment to fiscal consolidation and the prudent management carried out by the Treasury over the last few years, are enabling it to maintain a solid and diversified investor base and contain financing costs.
With this transaction, the Treasury has completed 15.5% of its financing programme in just one month, with 27.432 billion euros issued to date. The average maturity of outstanding government debt is 7.81 years and the average cost of the Treasury’s securities portfolio stands at 2.224%.
The quality and diversity of the allocation of this new Obligación del Estado is noteworthy, with demand spread over 481 investor accounts, highly diversified both geographically and by type of investor.
Non-resident investors accounted for 85.1% of the operation. Of note were the United Kingdom and Ireland with 28.7%, France and Italy with 16.4%, Germany, Austria and Switzerland with 7.7% and the Scandinavian countries with 7.1%. The remaining European investors accounted for 16.1% of the allocation. The United States and Canada accounted for 3%, Asia 4% and the Middle East 1.8%. Other investors accounted for 0.3%.
By type of investor, fund managers accounted for the largest share (35.6%), followed by central banks and official institutions (20%), treasury banks (17.4%) and insurance companies and pension funds (14.7%). Other banking services companies accounted for 4.8%, leveraged funds for 4% and other investors for 3.5%.
BBVA, Banco Santander, Crédit Agricole, Deutsche Bank, JPMorgan and Morgan Stanley acted as managers of this issue. The rest of the Bonos y Obligaciones del Estado Market Makers group acted as co-managers.