SANTA CRUZ DE TENERIFE, December 12 (EUROPA PRESS) –
The Government of the Canary Islands has completed the first public issue of bonds issued by the Autonomous Community since 2006 for 300 million euros over ten years, which reached an offer of 500 million, as reported by the Ministry of Finance, Budgets and European Affairs.
The Canarian vice president and counselor of the area, Román Rodríguez, highlighted that the response of the markets to the financial needs of the Canary Islands guarantees the solvency of the Autonomous Community, which enjoys one of the most solid credit metrics of all the territories of the State and registers the lowest ratio of debt per inhabitant in Spain.
Román Rodríguez has highlighted that the products that the Government of the Canary Islands have been launching to the financial markets in the last three years have obtained the approval of banks and institutional investors, who have signed them with alacrity.
It has also valued the “confidence” that the Autonomous Community generates among investors, which in turn is a guarantee when it comes to covering the expenses that the Executive has statutorily entrusted and satisfying the provision of public services. essential to citizenship.
Román Rodríguez stressed that the operations formalized by the Canary Islands for debt management in this mandate have had to do with the renegotiation of pre-existing loans and that, in no case, are they new indebtedness.
“We have a very solid financial position and that would allow us, if more complicated times come and it was strictly necessary, to go to the markets to obtain financing in very good conditions,” said the vice president.
The Canary Islands went to the markets a few weeks ago with a ten-year bond issue of 300 million euros to finance the lengthening of the average life of the current debt portfolio of the Autonomous Community. The last placement of public bonds was in 2006, although there have been subsequent ones but negotiated directly with the banks.
The general director of the Treasury and Financial Policy, Dunia González, explained that the response of investors to this issue has been very positive; not in vain, the offer exceeded 500 million euros, “managing to reduce the price to 23 basis points above the Spanish debt.”
Investors of seven different nationalities participated in the operation. 44% were foreign investors, especially German and Austrian, with 18% jointly; Portugal, with 10%; England and Ireland, 6%; France, 5%, and, finally, Switzerland and Italy, with 3% and 2%, respectively.
The banks mandated by the Minister of Finance for the issue were BBVA, Credit Agricole CIB, HSBC and Santander, entities that have agreed on the boost that the operation represents for the future of the Canary Islands.
“The Archipelago is beginning to be on the rise again and the reputation in the markets supports the good work done by this Community, while offering the opportunity for new synergies,” emphasized González, who recalls the plan that the Government has developed to the reduction of the payment of interests of the debt.
The refinancing of the debt of the Autonomous Community undertaken these last two years will allow a saving of 80 million euros and a reduction of almost 50% of the interests until the year 2029.
In addition to the market launch to refinance previous debt, the 894 million this year have also been financed, obtaining bilateral loans with low interest from the national market.
As indicated by the Ministry of Finance, “the Canarian Government, consequently, is in a position to face the challenges that lie ahead, especially those linked to the evolution of the pandemic and its eventual impact on the economy. Not only with the preparation of regional budgets for 2022 prudent and realistic, but with the support of a financial policy that would allow recourse, in case of need, to new debt that would be subscribed without problems by investors “.