Spain targets another 4.5bn euros in longer-term debt
Thu 18 Oct 2012
LONDON (SHARECAST) - The Spanish Treasury will test out the sovereign debt market again on Thursday while European leaders hold a summit to discuss some of the major topics that concern the debt crisis.
Spain will issue three-, four- and 10-year bonds for a target of €3.5-4.5bn. Specifically:
-Bonds with coupon rate of 4.00% and maturity in July 30th, 2015.
-Bonds with coupon rate of 4.25% and maturity in October 31st, 2016.
-Bonds with coupon rate of 5.85% and maturity in January 31st, 2022.
On Tuesday, the issuance of shorter-dated Treasury bills was met with solid demand and falling borrowing rates. Yields fell to 2.86% from 2.978% for the 12-month bills and to 3.04% from 3.56% for the 18-month bills.
Spain’s risk premium has since fallen to below 400 basis points, which is expected to ease the pressure for an imminent bailout request.
This next issuance of longer dated debt will signal whether Spain can still comfortably access the market without any international aid.