Spain gives mandate to issue a syndicated 50-year bond – Reuters Spain

By Abhinav Ramnarayan and Paul Day

LONDON / MADRID (Reuters / IFR) – the Spanish Treasury placed on Wednesday 3,000 million euros in the bond longer term in its history, taking advantage of the investment despair in search of profitability in a Europe with negative types and with the backdrop of political uncertainty <. / p>

the state Treasury took an over 10,000 million euros demand to place the new benchmark bond paying only 250 basis points over the types of mid-swaps (a reference rate for this kind of emissions), compared with an initial target of 253 points.

After the closing of the transaction, the Economy Ministry sent a note in which he said that is a bonus with a coupon of 3.45 percent and a yield of 3.49 percent, and non-resident investors swept the 83.30 percent of the issue.

Spain is the latest in a series of countries like Belgium and France who have dared to lengthen its debt with bonds at 50 or more years. Italy would be canvassing the market for a similar operation.

However, investors take on more risk in its bid for Spain given political uncertainty in the country with a functioning government since last December and new elections scheduled for late June.

The Spanish political parties have failed to form a government after a fragmented election result in December and citizens will return to the polls in late June without surveys provide a very different outcome.

Still, Barclays, BNP, CaixaBank, Citi, Santander and SG were mandated for placement aroused strong interest from institutional investors and tested the stability of peripheral markets.

“Clearly, an instrument such long-term is a test for the periphery, but there is a sense of confidence or we would not have launched the transaction,” said a banker underwriter. More …