It is proof of the confidence placed in the Spanish fixed income market
New issues of short and medium term assets admitted to trading on AIAF, BME’s fixed income market, reached a volume of €58.9 billion at the end of April, representing a growth of 133.5% relative the same period last year.
This figure represents more than half (54%) of all maturities planned for this year in bonds, asset-backed bonds and obligations. It also marks a turnaround in the Spanish bond market because, unlike what happened in the two previous years - in which companies and financial institutions carried out a significant volume of redemptions- this year they are not limited to the refinancing of maturities, and as a consequence there is now growth in the outstanding balance (issues - maturities).
Together, the Spanish companies made 192 bond issues for a nominal amount of €75.7 billion euros, 77.8% of which were listed on AIAF with a total of 127 issues.
"Again it is proof of the pick-up seen in our economy and the confidence placed by financial institutions in the Spanish bond market for raising funds, which they lend to businesses and individuals”, said Julio Alcántara, director and CEO of AIAF.
"Meanwhile, non-financial institutions are taking advantage of the current low interest rates to refinance and restructure their debt under better conditions, extending terms and reducing costs."
Additionally, an increase in Fixed Income issues in the coming months is expected following the entry into force of the Ley de Fomento de la Financiación Empresarial (Law for the Promotion of Business Financing), which broadens the financing sources available for enterprises - SMEs in particular – through instruments as well as complementary and alternative sources to bank financing.