Spain is tapping into robust investor demand with a new 12-year bond offering, following the record-breaking success of Italy’s bond sale earlier this month. The inflation-linked bond is expected to be priced at around 25 basis points above comparable debt, according to a source familiar with the matter. Analysts at Commerzbank AG predict the sale could raise up to €4 billion ($4.5 billion).
Although debt syndications typically incur higher costs than auctions, they offer governments a quick way to raise substantial funds and diversify their investor base.
Bookrunners for this deal include Citigroup Inc., Credit Agricole SA, Goldman Sachs Group Inc., Morgan Stanley, Banco Santander SA, and Societe Generale SA.