The IGCP - Treasury and Public Debt Management Agency this Wednesday placed 4 billion euros in a 15-year Treasury Bonds (OT) syndicated sale, that is, on October 12, 2035, having paid a rate of 88 basis points above the midswaps, which translated into a yield of 0,928%.
The Ministry of Finance said, in a statement released this afternoon, that the demand was 40 billion, a new record that beats the maximum established in the last syndicated sale, in April. That is, it was more than ten times the amount placed.
“Thus, in the last two years, and despite the current crisis situation caused by the pandemic of Covid-19, there has been a significant improvement in the state's financing conditions, reflecting the markets' confidence in the recovery of the Portuguese economy and in the performance public accounts, ”said João Leão's office, in the same note.
On June 19, the agency led by Cristina Casalinho informed that, following the presentation of the Supplementary Budget by the Government, it almost doubled the financing needs for 2020. In the document with the new program values for the third quarter, IGCP detailed that the figure rose to 20,3 billion euros this year, a figure higher than the 10,7 billion euros previously projected.
This was the third syndicated sale that took place this year, with this issue the IGCP completed 69,1% of the issue target of 29,3 billion euros through auctions and syndicated sales.
“The transaction benefited from the participation of more than 380 accounts, which represented a strong and diversified demand, mainly from Europe, especially from France, Italy, Spain and the United Kingdom. Regarding the type of investor, fund managers [48,4%], banks [25,2%], insurance and pension funds [15,7%] represented the majority ”, says the institution. The report also reports 5,5% of hedge funds.
The operation joint lead managers CaixaBI, Credit Agricole CIB, Deutsche Bank, Goldman Sachs International Bank, JP Morgan, and Nomura.