Spain Debt Agency Says More Than 85.6% Of Funding Executed

LONDON (MNI) – Spain has executed more than 85.6% of its initially
projected medium-and long-term gross funding plans for this year, the
Spanish Treasury said.

In an investor presentation on its website, the debt agency
asserted that Spanish auctions have been “resilient, even under stressed
market conditions.”

“Non-residents have been cautious in H1 2010, with domestic real
money investors increasing their demand,” the Treasury said, noting that
the strong response from “real money” non-residents to the 10-year
syndication deal in July showed confidence in Spain’s credit.

Spain priced E6.0 billion of its new 10-year benchmark issue at
mid-swaps +195 basis points, which equates to +228.1 basis points vs
10-year Bund. Final demand for the deal was in excess of E14.5 billion.

“The geographical distribution of holdings of government bonds has
remained relatively stable during the last two years”, the Treasury
said.

Going forward, the Treasury will continue to lengthen the average
life of debt outstanding, with rates still relatively low. In addition,
it aims to “support the normalization of market functioning through
transparency and predictability,” it said.

–London newsroom: 00 44 20 7862 7494; email: nshamim@marketnews.com

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