Spain sees strong demand in 50-year bond offer | 2016-05-13

Spain sees strong demand in 50-year bond offer

13 May, 2016 12:00 AM printer

MADRID: Spain said Wednesday the launch of its first 50-year bond in two years drew strong investor demand, as it became the latest eurozone country to jump on the long-bond bandwagon.
The Spanish Public Treasury sold 3.0 billion euros ($3.4 billion) of the bond maturing in 2066 via a syndication which drew orders worth 10.4 billion euros, the economy ministry said in a statement, reports AFP.
“The high demand allowed the Treasury to assign the emission to very high quality investors, that is to say, of a very diverse typology both by the type of investor as well as by geographic areas,” the statement said.
Companies and governments are increasingly borrowing at longer maturities in Europe as the European Central Bank’s stimulus measures have pushed down bond yields and lowered borrowing costs, forcing investors to seek longe-dated debt to generate returns.
France and Belgium both issued 50-year bonds last month, while Ireland and Belgium went even further, issuing 100-year bonds.
The 50-year bond Spain issued on Wednesday had a yield of 3.49 percent, down from the yield of 4.02 percent when it issued 50-year government bonds for the first time in September 2014, suggesting investors are more concerned of the firsts of holding Spanish debt.