Spain loses over €75bn of orders after ‘shocking’ price move

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By Burhan Khadbai
14 Jan 2021

In a dramatic and unprecedented turn of events on Wednesday, Spain went from being on track to attract the biggest ever order book for a bond issue to losing more than half of its orders, as it slashed the spread of its new 10 year syndicated bond, leaving either a negative or very skinny new issue premium.

Early on in the bookbuilding process, everything seemed to be going to plan.

After being mandated on Tuesday for Spain’s new April 2031 (long 10 year) euro benchmark, lead managers BBVA, Citigroup, HSBC, JP Morgan, Santander and Société Générale opened the books on Wednesday morning with price guidance ...

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