MADRID: Spain said on Wednesday (Thursday in Manila) the launch of its first 50-year bond in two years drew strong investor demand, as it became the latest eurozone country to jump on the long-bond bandwagon.
The Spanish Public Treasury sold 3.0 billion euros ($3.4 billion) of the bond maturing in 2066 via a syndication which drew orders worth 10.4 billion euros, the economy ministry said in a statement.
“The high demand allowed the Treasury to assign the emission to very high quality investors, that is to say, of a very diverse typology both by the type of investor as well as by geographic areas,” the statement said.
Companies and governments are increasingly borrowing at longer maturities in Europe as the European Central Bank’s stimulus measures have pushed down bond yields and lowered borrowing costs, forcing investors to seek long-dated debt to generate returns.
France and Belgium both issued 50-year bonds last month, while Ireland and Belgium went even further, issuing 100-year bonds.