Spain Plans to sell 15 Year Syndicated Debt

May 22
11:40 AM 2013

Spain, in a bid to increase its liquidity, is planning to issue a 15 year bond sale through chosen banks this year. It is also considering to offer index linked as well as dollar denominated debt as it now prepares to tap investor overseas demand, according to its Deputy Treasury Head, Ignacio Fernandez-Palomero Morales.

In a news conference in Madrid today, Fernandez-Palomero Morales said, "We could still access the markets with a potential syndicated issue in the range of 15 years. If market conditions are suitable, Spain may carry out a syndicated sale before the end of the year."

Aside from those mentioned, the country is considering a sale linked to Spanish or euro area inflation rated instruments.

According to the Treasury, it had covered more than half of the planned mid term and long term gross funding requirements for 2013 after it sold Eur7 billion or US$9 billion of a ten year bond through banks with a yield that is 100 basis points lower than the benchmark issued syndicated debt from last January.

The returns from the ten year debt issues of Spain had dropped to a record low of 7.75% in July since the institution of the Euro. European Central Bank President Mario Draghi said that the ECB would purchase the debt of European nations that would form part of a rescue package. 

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