LONDON, Jan 18 (IFR) - Instituto de Credito Oficial (ICO) has mandated Barclays Capital, Bankia, BBVA and CA CIB to lead manage its first benchmark issue since July 1, 2011, when it sold a EUR1bn 3-year.
The A1/A/AA- rated Spanish government agency, which has an explicit guarantee, opened books for a new five-year transaction this morning, with price guidance set at SPGB 3.8% 01/17 mid swap plus 70bp area.
The transaction will provide a test of investors’ appetite for Spanish government risk after S&P’s downgrade last week. Spain successfully raised EUR10bn via auction earlier in the week.
Reporting by Helene Durand, Editing by Alex Chambers