(Adds details, background)
LONDON, Jan 21 (IFR) - The Kingdom of Spain, rated
Baa3/BBB-/BBB, plans to issue a 10-year euro-denominated
syndicated bond in the near future, banks managing the deal said
Barclays, BBVA, Citi, Goldman, Santander and Societe
Generale have been mandated to run the books, and initial price
expectations are expected to emerge as early as Tuesday morning
for pricing later in the afternoon, the leads said.
Spain was last in the syndicated bond market in February
2012 with a tap of its 5.85% January 2022 note.
Barclays, BBVA, Deutsche Bank, Goldman Sachs, Santander and
Societe Generale managed that EUR4bn tap.
Since then, the sovereign has steered clear of the
syndicated market opting for public auctions instead.
It has already issued about EUR10bn via auctions in 2013 and
pre-funded this year's financing needs by EUR5bn late in 2012.
This year it has medium- and long-term financing needs in excess
Leads declined to comment on the size of the bond, though
one said that it would likely be at least EUR3bn.
The leads said that the country already had bonds
outstanding that mature in January 2022 and January 2024.
"Filling that gap in their funding is therefore a natural
step," one banker involved said.
A range of Iberian credits have recently enjoyed success in
the fixed-income markets, including some which struggled last
Earlier this month, Spanish agency FADE - which twice had to
pull deals in 2012 - saw its 4.125% EUR1bn four-year issue more
than twice subscribed.
National champions such as Telefonica, Gas Natural and BBVA
have attracted strong orderbooks for offerings too, paving the
way for higher beta credits like Bankinter, Caixa General,
Sabadell and Red Electrica.
(Reporting by Natalie Harrison and Josie Cox, IFR Markets;
editing by Julian Baker, Alex Chambers)