75% of Spanish debt goes to foreign hands

After issuing €5 bn of a bond linked to inflation fluctuations with a 10-year maturity, the Spanish Treasury has already met 51% of its 2014’s financing needs. The auction’s real yield was of 1.8% while the demand exceeded four times the offer.

Main buyer were international investors with 73% of the Spanish debt issued, mostly insurance companies and fund pensions (53% of the overall amount). Furthermore, Spain issued short-term debt, selling €1,2 bn of 6-month bills at 0.362%, and also €3,3 bn of 12-month at 0.598%.

In the corporate front, Telefonica’s issue of 8-year senior bonds at €1.25 with a minimum low yield of 2.24% was over demanded by 3,2 the initial offer and handed to foreign investors in a 90%. In the mean time Bankia returned capital markets for second time in current year with the sale of 10-year subordinated debt amounting €1 bn, pricing a yearly 4%, and also having a fourfold demand. A significant 83% of these Bankia’s securities were sold to international buyers.