The last auction of the year, scheduled for December 15, has been eliminated
MADRID, 27 Nov. (EUROPA PRESS) –
The Public Treasury will return to the debt markets next week and will start issuances for the last month of the year, after announcing its decision to reduce the planned issuance of public debt for 2022 by 5,000 million euros, to 70,000 million.
Next Thursday, December 1, the body under the Ministry of Economic Affairs and Digital Transformation will launch the December issues with a medium and long-term debt auction.
Specifically, it will auction State Obligations with a residual life of 4 years 11 months, with a coupon of 1.45% and maturity on October 31, 2027. It will also issue State Obligations with a residual life of 8 years 5 months, with a coupon of 0.10% and maturing on April 30, 2031 and 15-year State Obligations, with a coupon of 0.85% and maturing on July 30, 2037.
It will be the first auction after the First Vice President and Minister of Economic Affairs and Digital Transformation, Nadia Calviño, announced the decision to reduce the planned issuance of public debt for 2022 by 5,000 million euros, with which the net issuance of debt is year by the Treasury will be approximately 70,000 million euros, while gross issuance will drop to 232,507 million euros.
This reduction in financing needs will lead to an adjustment in the scheduled issuance calendar, with the suppression of the last debt auction scheduled for this year, which was to be held on December 15.
And it is that more than 96% of the issuance calendar of the Treasury financing program for 2022 has already been executed. In addition, the cost of the total debt as a whole remains at levels similar to last year, 1.68%, while The average cost of the debt issued this year stands at 1.19%, in the absence of the auctions to be held in December, according to the Economy.
Likewise, the organization has emphasized the “significant effort” to maintain the average life of the debt, which currently stands at 7.9 years, which increases resistance to rising interest rates and reduces risks of refinancing.
This will allow, according to Economía, to keep the interest burden on GDP stabilized in the coming years at around 2.2%, and the average life at current levels, reinforcing the long-term sustainability of the Spanish public debt.
On the other hand, Nadia Calviño’s department has indicated that the investment base has continued to increase and diversify, thanks to the “fluid and intense” dialogue with investors and the issuance of new financing instruments, such as green bonds, with a issuance of 3,207 million euros in 2022 and a total of 8,207 million euros under the program.
According to the draft Law of General State Budgets (PGE) of 2023, the gross issuance by the Public Treasury next year will be 256,930 million euros, which represents an increase of 8.2% compared to the estimate for this year. year due to rising interest rates.
For its part, the net indebtedness of the Public Treasury in 2023 will be reduced by 5,000 million euros, to 70,000 million. Breaking down by type of instrument, the Treasury Bills are expected to provide net negative financing of 5,000 million, so the State bonds and obligations, together with the rest of the debts in euros and foreign currency, will contribute the remaining 75,000 million.
