Spain recently issued a new 10-year government bond, valued at 15 billion euros ($16.40 billion), through a bank syndicate. The issuance of this bond was met with strong demand, as confirmed by one of the lead manager banks.
While the 15 billion euro size of the new bond is significant, it does not break any previous records. It is worth noting that in April 2020, Spain issued a 10-year bond of similar size, also valued at 15 billion euros.
The orderbooks for the new bond closed at an impressive excess of 137 billion euros, including 6.25 billion euros in joint lead manager interest. This overwhelming demand demonstrates the market’s confidence in Spain’s financial stability.
To determine the spread on the bond, a margin of 9 basis points was set above the mid-yield of the existing 3.55% October 2033 Spanish bond. The newly issued bond carries a coupon rate of 3.25% and was priced at 99.920, yielding 3.259%.
Leading the transaction were prominent banks such as Barclays, BBVA, Credit Agricole CIB, Deutsche Bank, J.P. Morgan, and Santander.
