Spain debt

Spain covers 58% of the 2022 debt issuance plan with the placement of a new 10-year bond

MADRID, June 7 (Reuters)Spain’s 10-year bond offering worth 8 billion euros ($8.56 billion) on Tuesday saw demand surpass pre-pandemic levels and the country has now hedged almost 58% of its medium- and long-term debt issuance plan for this year, the Treasury said. .

About 81% of the demand for the syndicated launch came from international investors from countries including Britain, Germany, France, Italy and the United States. Fund managers and bank treasuries bought most of the issue.

The Treasury said in a statement that the diversity of investors was proof of the high level of confidence in the Spanish economy, while the strong demand for around 40 billion euros “shows the Treasury’s good access to capital markets. in a context of normalization of monetary policy” by the European Central Bank.

The October 2032 bond was priced at 2.552%, 11 basis points above the current benchmark expiring in April 2032.

The Treasury said that although debt yields in Europe have risen since the start of the year, with the ECB soon to raise interest rates to rein in high inflation, the rise in Spanish yields has taken hold. lagging behind neighbors such as Portugal and Italy.

The cost of servicing all outstanding debt, which has an average maturity of 8.1 years, slipped to 1.59% from 1.64% at the end of 2021, he added.

($1 = 0.9350 euros)

(Reporting by Catarina Demony; Editing by Andrei Khalip)

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