The Treasury aims for more than half of the debt to be in the hands of foreign investors given the improvement in Spain’s rating

He Public Treasury Spanish, an organization dependent on the Ministry of Economy, Commerce and Business, hopes that the base of foreign investors will increase in the coming months from the current 48%. As explained by the general secretary of the Treasury and International FinancingPaula Conthe, the improvement of Spain’s rating will allow them to have a greater presence of foreign investors, especially Nordic and Asian investors, but also from the Middle East.

As the Minister of Economy, Carlos Body, announced last week, the volume of net emissions for 2025 will remain at 55 billion, although the total gross issuance will be 285,677 million4.2% more as a result of the higher amortizations that will have to be faced. Initially, the Treasury estimated about 60,000 million for the current year in order to maintain margin that would allow it to meet the needs of the areas affected by DANA.a figure that was finally reduced by 5,000 million.

The dynamism of economic activity and especially of the labor market, which record membership mark, with more than 21.8 million people registered with Social Security, result in lower financing needs. During the presentation of the Treasury roadmap for the next four quarters, Conthe highlighted that the main ‘rating’ have raised Spain’s rating to level A for the first time since 2012, while the risk premium falls below 50 points, something that “reflects investor confidence in the economy.”

Its strategy for 2026 aims to be continuous and will be marked by “prudence” and flexibility in an environment of international uncertainty like the current one. In this regard, the debt tranches in the medium and long term will continue being a priority with an average debt life of eight years for the fifth consecutive year, so the short term will account for around 5,000 million of those 55,000 million. As Conthe has detailed, this aims to “minimize the risk of annual refinancing.” Besides, we will continue betting on the issuance of green bondswhich already reaches 18,000 million, and which seeks to strengthen the sustainable finance market, as well as the bond programs linked to European inflation.

Given the diversification of the investor base as part of its investment plan, the Treasury anticipates that the demand for debt by individualswhich currently account for 25%, will stabilize. Spanish families have played a relevant role in the auctions held since 2023, when the rebound in profitability encouraged many families to allocate their savings mainly in Treasury Bills.

“The higher interest offered has caused a new group of retail investors to enter and although they represent an important part of the short-term debt, overall its role is smaller”explained after admitting that “it is good news that there are more and more individuals.” Precisely, regarding financing costs, Conthe has commented that the average increase in cost will remain stable.