LONDON, Feb 9 (IFR) - The Kingdom of Spain is considering the issuance of a new 15-year syndicated bond in the next two weeks, according to three market sources.
The sovereign, rated Baa2/BBB/BBB+, is looking to take advantage of a bid for duration to get the deal away this month, and possible as early as this week.
“It makes perfect sense for Spain to issue a longer tenor at the moment. In a low inflation environment and with short-dated bond yields so low, there is a huge bid for peripheral long-dated bonds,” said one SSA syndicate banker.
Spain already has a liquid 30-year benchmark - a 5.15% October 2044 note - so a 15-year fills a gap in its curve, he said.
Plans for a new 15-year follow the issuance of a syndicated EUR9bn 10-year note last month, a deal that garnered a book of over EUR17bn.
The new 15-year is planned for the week starting February 16, according to two sources, but one banker suggested the sovereign could launch it as early as this week.
Spain’s debt management office did not respond to requests for comment.
Bankers are recommending that issuers accelerate their borrowing plans to avoid any fallout from the ongoing political uncertainty in Greece.
Prime minister Alexis Tsipras gave a defiant speech over the weekend that has left market participants nervous about bailout negotiations and Greece’s future within the single currency. (Reporting By Abhinav Ramnarayan and Michael Cartine, editing by Alex Chambers and Julian Baker)