Spain to place 6 billion euros syndicated bond

 

The Spanish Treasury is seeking to place 6 billion euros of 10-year bonds with foreign banks in a syndicated deal this week or next, El Mundo newspaper reported on Tuesday, citing banking sources.

The bonds will pay interest of no more than 5.7 %, the paper said, about the same yield as 10-year Spanish bonds trading in the secondary market on Tuesday.

No-one at the Spanish Treasury was immediately available for comment.

Spain returns to bond markets this week for the first time in 2011 and expects to raise between 2 billion and 3 billion euros through a 3-year bond. The government said it will issue net medium and long-term debt of 47.2 billion euros this year.

Spain sold 6 billion euros of 10-year bonds in a syndicated benchmark issue in July with a yield of 4.874 %.

Spain has had to pay more to access the debt markets since then on investors' concerns over the future of the euro zone.

The premium demanded by investors to hold Spanish 10-year bonds over their German equivalents was around 270 basis points at settlement on Monday, below euro lifetime highs of over 300 basis points last month.