Non EURO Debt

Since the beginning of the 1980s, the Kingdom of Spain has taken an active part in international capital markets, which has allowed it to diversify its financing sources and risk distribution. As a consequence of the foregoing, the Treasury is considered a sovereign issuer of great prestige and solvency, and this fact is recognised by the main international credit rating agencies.

At present, foreign currency-denominated financing plays a complementary role to euro-denominating financing, in addition to the possible obtaining of cost savings. One of its primordial objectives, in addition to the potential obtaining of cost savings through arbitration-based transactions, is to diversify the international investor base in bonds issued by the Kingdom of Spain. Amount of non EURO Debt is under 1% of total outstanding debt. 

The composition by currencies of the Treasury’s foreign currency-denominated debt (before swaps) shows a predominance of bonds in Dollars, followed at a considerable distance by Yens and Pounds Sterling. By instruments, the segment comprised of negotiable instruments is of notable importance: Eurobonds and Mid-Term Notes, with loan participation being zero at the present time. La exposición de la cartera de deuda en divisas a las variaciones del tipo de cambio es prácticamente nula, dado el escaso volumen de estas emisiones sobre la totalidad de la deuda en circulación y a que están cubiertas, en un alto porcentaje, mediante swaps.