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Spain concludes 2012 bond issuance plan after 4.8 bln bond sale
November 8, 2012 / 10:06 AM / in 5 years

Spain concludes 2012 bond issuance plan after 4.8 bln bond sale

MADRID, Nov 8 (Reuters) - Spain sold 4.8 billion euros of debt including its first longer-term issue in 18 months on Thursday, enough to complete its 2012 financing programme and begin raising funds for next year as the government weighs a request for an international rescue.

The Treasury sold 732 million euros of bonds maturing in 2032, showing there was demand to take on Spanish debt even over a longer time horizon.

But the average yield on the 20-year bond was high in historic terms at 6.328 percent. Spain had not sold such longer-term debt since May last year before a financial crisis worsened and yields on its debt jumped.

The yield on the 2015 bond dropped to 3.660 percent compared with 3.956 percent at its last sale on Oct. 4, while it was 4.680 percent on the new five-year bond.

The Treasury sold 992 million euros of the bond maturing in 2015, and 3 billion euros of new five-year bonds. All together the amount sold was above the 3.5 billion euro to 4.5 billion euro target range.

That brought its planned bond issuance for 2012 to a close ahead of schedule, allowing it to focus on financing needs for 2013 in the remaining auctions this year.

Demand was strong on the 2015 bond with a bid-to-cover ratio of 2.8 after 2.0 at the last sale on Oct. 4. It was 1.6 on the new five-year issue, and 2.1 on the 20-year bond.

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