Jan. 23 (Bloomberg) -- Goldman Sachs International sold 1 billion euros ($1.33 billion) of a Sept. 15, 2026, Madrid region note today as the second-biggest contributor to Spain’s economy seeks to benefit from a rally in the nation’s securities.
Goldman placed the notes privately while five banks took part in the syndicated sale of a 2018 note, data compiled by Bloomberg show. The five-year notes were sold at a spread of 190 basis points over the reference 2018 Treasury bond, according to people familiar with the matter who asked not to be named because they’re not authorized to speak about it.
The region tapped the markets after the Treasury yesterday saw record demand for a 10-year bond. Spain’s Cabinet last week gave Madrid, Galicia, Navarra and Aragon a green light to issue 4.4 billion euros of bonds amid a surge in investor interest for Spanish shares as well as government and corporate debt.
Madrid’s economy department said it has sold the 2.3 billion euros of debt it was authorized to issue on Jan. 18 and that details will be given today at 5 p.m. in Madrid. The amount represents about 60 percent of the region’s 2013 funding needs.
Analistas Financieros Internacionales, a Madrid-based consultancy, estimates gross debt sales from the regions of about 30 billion euros this year, excluding short-term debt.
The Treasury plans to raise 23 billion euros for the nation’s regional rescue fund known as FLA, created last year to prevent any regional default, and that was tapped by nine of 17 semi-autonomous regions.
The Budget Ministry has imposed a debt ceiling of 172 billion euros on the regions this year, or 16 percent of gross domestic product. That compares with outstanding debt of 167 billion euros in the third quarter and includes 102 billion euros of bank loans, with the remainder mostly in bonds, according to the Bank of Spain.
Goldman Sachs Group Inc. is the bank that generates the most revenue from equity trading worldwide.
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