Business Record demand in a 10-year syndicated obligation

Record demand in a 10-year syndicated obligation


The Public treasure has received a record demand of more than 53,000 million euros in the 10-year syndicated obligation issued on Tuesday, exceeding 46,500 million of the issue placed a year ago, as well as in the type of interest of the operation.

Specifically, the agency has raised 10,000 million euros with the new syndication and the coupon of the issuance has been 0.5%, which also means a new historical low.

The general secretary of the Public Treasury and International Financing, Carlos San Basilio, highlighted during his intervention in the X edition of 'Spain Investors Day' the interest and "appetite" of investors before the record recorded in the demand for the issue, with a coupon of 0.5%, the "lowest of the history".

The price of the issue, due on April 30, 2030, has been at 32 basis points above 'midswaps' (the reference rate for fixed-rate issues). Thus, the registered interest has remained at 0.525%, below 0.6% of the syndicated issuance last summer and 1.46% of that of a year ago.

BBVA, Citi, HSBC, J.P. Morgan, Santander Y Société Générale they have acted as the coordinating entities for the issuance of the new obligation of the syndicated State for 10 years.

The issue coincided with the first meeting of the Council of Ministers of the new Coalition Government of the PSOE and United We, after Monday's portfolio transfers.

The Treasury has also placed this Tuesday 5,105 million euros in 6 and 12 month letters, within the expected average range, and has done so by charging investors more for the 6-month bills, registering more negative rates, but less for the 12-month bills.

The joint demand of the two references auctioned on Tuesday has exceeded 9,681 million euros, 1.9 times more than finally awarded in the markets (5,105 million euros), which has been in the expected average range, since it I expected to attract between 4,500 and 5,500 million euros.

2020 strategy

The agency closed the fiscal year 2019 with a net issuance of 19,960 million euros of debt, 41.8% less than in 2018, and 42.9% below what was foreseen by the Government, the lowest figure since 2007. This lower issuance allowed a saving of 2,371 million in interest payments, which exceeded 24,000 million, compared to what was calculated at the beginning of the year.

By 2020, it plans to carry out a net issuance of public debt of 32,500 million euros, which is 7.1% less compared to last year's strategy, but 62.8% more than the 19,960 million issued at the end of 2019.

The Treasury strategy contemplates a gross issuance of public debt of 196.504 million for this year, 6.2% less than the 2019 strategy and expects to obtain all net financing through the issuance of medium and long-term instruments. In addition, the agency plans to issue its first green bond at 20 years in the second half of the year.

. (tagsToTranslate) Public debt


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