Bankia sold its first senior non-preferred bond this week after the market rallied following a dovish speech from Mario Draghi, president of the European Central Bank. The issuance attracted a hefty book of €3.7bn, more than seven times its pre-determined size of €500m.
Bond spreads zipped tighter after Draghi said on Monday that the ECB could offer further stimulus, including rate cuts, if the economic outlook failed to improve.
Draghi also said that there was “considerable headroom” for more asset purchases.
Against this backdrop, Spain’s Bankia entered the market to execute