Spain Studies 15-Year Syndicated Issue, Inflation-Linked Bonds

Spain is considering a 15-year bond sale through banks this year as well as offers of index-linked and dollar-denominated debt as it seeks to tap investor demand, Deputy Treasury Head Ignacio Fernandez-Palomero Morales said.

“We could still access the markets with a potential syndicated issue in the range of 15 years,” Fernandez-Palomero said at a news conference in Madrid today. If market conditions are suitable, Spain may carry out a syndicated sale before the end of the year, he said. The kingdom is also considering a sale linked to Spanish or euro-area inflation.

The Treasury said last week it had covered 54 percent of its planned mid- and long-term gross funding needs for 2013 after selling about 7 billion euros ($9 billion) of a new 10-year bond through banks at a yield 100 basis points lower than the benchmark issued through a syndication in January.

The yield on Spain’s 10-year debt has plunged from a euro-era record of 7.75 percent in July after European Central Bank President Mario Draghi vowed in September to buy the debt of European nations that sign up to a rescue package. The rate was at 4.20 percent at 12:49 p.m. London time.

Spain may also issue debt to finance the country’s energy tariff deficit this year, Fernandez-Palomero said.

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