Spain

Spain auctioned three year debt at a record low yield on Thursday, but its borrowing costs may have further to fall after the European Central Bank gave a strong hint that it could introduce more monetary easing.

Cores, the agency which stocks Spain’s fuel supplies, printed its first syndicated bond in over a year on Wednesday. French investors propelled the international demand for the paper.

Public sector borrowers are putting the final touches to their funding programmes for the year amid stable market conditions, but there are few signs that any will pre-fund for 2016 in large size.

Deutsche Bank’s subsidiary in Spain successfully issued its first publicly syndicated Cédulas Hipotecarias on Tuesday. The €1bn five year, which attracted a comfortably oversubscribed book, sets a strong foundation for further benchmark supply expected over the next two years.

Deutsche Bank will open books for a five year Cédulas Hipotecarias on Tuesday following last week’s roadshow.

Abengoa is negotiating with five banks and Spain's government for a new €1.5bn credit facility, as the Spanish establishment has rallied round to save the debt-laden renewable energy engineering group, writes Victor Jimenez.

Amadeus, the Spanish company that provides IT systems to the air travel industry, reaped the rewards of five weeks of patience on Tuesday as its €500m six year no-grow bond brought in an order book of over €4.75bn.

BBVA issued a €1.25bn five year covered bond on Tuesday that attracted an order book unequaled in size in the Cédulas market since July.

Amadeus, the Spanish company that provides IT systems to the air travel industry, reaped the rewards of patience on Tuesday after sitting in the pipeline for five weeks as its €500m six year no-grow bond brought in an order book of over€4.75bn.

BBVA returned to the covered bond market for the second time this year on Tuesday, opening books for a long five year. Despite pricing well inside Spanish government Bonos, and even though political instability was causing ructions in neighbouring Portugal, the national champion quickly built an order book unequaled in size in the Cédulas market for nearly four months.

Iberdrola, the Spanish electricity company, raised €500m of cheap funding on November 6 with an equity-neutral convertible bond, partly as a response to the recent disruption in the straight bond market.

Political risk appeared to be influencing investors’ decision making on Monday, as a trio of eurozone periphery sovereigns underperformed their peers in secondaries. But there was better news for Cyprus, which more than halved its one month borrowing costs at an auction.