Spain’s bold move gets results

ICO and BNG are in the market after the Kingdom of Spain accelerated issuance of a new 10 year Bono to capitalise on last week’s successful auction. Spain’s Eu6bn 10 year deal, larger than hoped for, attracted orders of more than Eu14.5bn from 300 investors hungry for its juicy spreads on Tuesday. BNG will issue a five year euro benchmark on Wednesday via Barclays Capital, Credit Suisse, Deutsche Bank and JPMorgan. Price guidance is mid-swaps plus 18bp. ICO is preparing a three year at plus 215bp area via BBVA, Credit Suisse, Goldman Sachs and JPMorgan. In dollars, KfW will price a three year global on Wednesday at 20bp over mid-swaps. Leads are Barclays, Morgan Stanley and RBS. Read EuroWeek on Friday for news and views on the Spanish transactions — and the rest of this week’s SSA deals.