Spanish Treasury places 5 billion euros in new 10-year bonds indexed to European inflation

The new 10-year issue, maturing on November 30, 2027 at a real coupon rate of 0.65%, has become a new benchmark for that term. The real yield of the issue was 0.733%, 65 basis points lower than the Italian bond of the same term. A total of 5 billion euros was issued, with a very high demand, in excess of 16.4 billion.

Thanks to this healthy demand, the Treasury was able to place the issue among high quality investors from 163 investment accounts. The placement was highly diversified in terms of investor type and geographic area.

Non-resident investors accounted for 62.7% of the syndication. The United Kingdom and France were the biggest investors with 25.3% and 14% of the issue respectively. Nordic countries accounted for 4.4% while the rest of Europe took 10.1%. The United States and Canada accounted for 8.9%.

Broken down by investor type, fund managers and banks accounted for the highest percentage, with 30.9% each. Pension funds and insurance companies took 13.9% of the total, followed by central banks and official institutions with 13.6%, and leveraged funds with 10.7%.

With this syndicated issue the Treasury has covered 43.8% of its medium- and long-term issue programme for 2017. After this issue the average life of the State's debt portfolio stands at 7.06 years.

BNP Paribas, CaixaBank, Citi, HSBC, Morgan Stanley and Société Générale acted as bookrunners for this issue. The rest of the group of government securities market makers acted as co-bookrunners.