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.


About the Author

Julia Pastor
Julia Pastor has broad experience in business writing for Consejeros Media Group at Consejeros, Consenso del Mercado and The Corner. Previously, she worked for the financial news agency GBA and contributed to El País Business. She holds a Master's in Financial Journalism and a degree in English from the Complutense University in Madrid.

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