Spain considering debut issue of European inflation-linked bond
LONDON, Dec 5 (IFR) - Spain is considering issuing its first ever inflation-linked bonds next year, said a spokesperson for the Treasury on Wednesday, as the country looks to further diversify its investor base to ease its funding burden.
The spokesperson said Spain was now "closer than ever" to issuing inflation-linked notes.
Spain's Treasury need to issue EUR243.9bn (USD330bn) of gross debt in 2014 to cover maturing debts and new financing needs.
The spokesperson said it would unveil the decision on inflation-bonds in its annual funding strategy set to be published in January. Any issue would be linked to Eurozone inflation and would not be a one-off.
The treasury indicated it was looking at such instruments in 2010 and 2011, but its plans were sidetracked after its borrowing costs spiked in mid-2012 amid fears it may require a bailout. (Reporting by John Geddie; editing by Alex Chambers)
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