Sovereign success in euros

A fantastic 10 year transaction from Kingdom of Spain has set the tone for SSAs in euros this week. The Eu7bn deal, which paid a new issue premium of only 7bp, attracted a book of Eu15bn as domestic investors, supported by French and German insurance companies, clamoured for paper. The Eu1.5bn four year for the Republic of Cyprus was also a runaway success with books of over Eu5.5bn while the Republic of Portugal’s five year also received a solid thumbs-up from investors — the Eu3.25bn issue garnering almost Eu6bn of demand.