MNI INTERVIEW: Spain Considers Fourth, Final 2022 Syndication

Spain is considering its fourth and final debt syndication of the year in the longer end of the curve, the director general of the Spanish Treasury told MNI, adding that the country has no plans to update its annual funding target in response to government moves to offset rising energy costs.

Another syndication would add to three “very successful” deals in the 10Y and 30Y spaces, Alvaro Lopez Barcelo said in response to emailed questions.

“Naturally, we will have to analyse the market carefully, as changes in monetary policy, even if they are well telegraphed in advance, are prone to bouts of volatility,” Lopez Barcelo said. “We are in close contact with our primary dealers, and we are always attentive to the needs of our investors.”

The cost of government measures including a cap on gas prices and cuts to value-added tax has been compensated by higher tax revenues elsewhere due to higher inflation, Lopez Barcelo noted.

“We are comfortable with our current net funding target of 75 billion euros,” he said. “We’ve already covered almost 76% of our medium and long-term gross funding target of EUR148 billion, so we are well on track.”