(Adds details of placement, Mapfre statement)
MADRID Nov 6 (Reuters) - Spanish insurance company Mapfre said on Tuesday it had placed 1 billion euros of three-year bonds after the issue was 3.7 times oversubscribed, the latest sign of improving investor sentiment towards southern European issuers.
The issue attracted interest from foreign investors, including the UK, Ireland, France, Germany and Austria, said Mapfre.
Thomson Reuters' news and market analysis service IFR reported earlier that books for the bond opened with a price guidance around 5.375 percent and were finalised at 5.125 percent as orders poured in.
The offer is Mapfre's first debt issue in five years.
Spain itself last paid an average yield of 3.227 percent for a three-year bond on Oct. 18.
While investors had turned cold on issues from Spain and other countries at the centre of the euro zone crisis, appetite has picked up since European Central Bank president Mario Draghi said he would take action to secure the future of the euro.
Banco Espirito Santo placed 750 million euros in three-year unsecured bonds last week, marking the return of Portuguese banks to the debt market. ($1 = 0.7823 euro) (Reporting by Clare Kane and Sarah Morris; Editing by Dan Lalor)