Spain's Electricity Deficit Amortization Fund (FADE) has completed the last round of its debt refinancing plan, issuing €1,500 Mn in three-year bonds. The operation was the eleventh performed by FADE since it launched its program of bond issues in January 2011.

BBVA, through its Corporate & Investment Banking division, has been responsible for the largest market share in this type of operations, having acted as bookrunner in ten of the

aforementioned issuances. BBVA also facilitated the placement of €400 million of the 900

million issued by FADE in October through direct placements among institutional investors, in addition to the €765.3 million placed during 2013 and €2,108 million through 14 operations since FADE was established. As a result, the bank boasts the greatest market share in this raft of deals, including public issues and private placements.

BBVA was joined in leading this latest issuance by Goldman Sachs, HSBC and Société Générale. Demand for the bonds, offering a coupon of 2.25% per annum, reached €2,000 million, and the issuance closed 20 basis points above the equivalent debt of the Spanish Treasury.

140 investors participated in the operation, with 63% of the debt being acquired by fund managers, 26% by banks, and 9% by insurance firms and pension funds. From a geographical perspective, 58% of the total was acquired by Spanish investors, with investors from other eurozone countries showing a strong appetite for the offering and purchasing 22% of the total. UK investors acquired 13%, with the remaining bonds being placed among investors from Scandinavia and Switzerland in particular.

Any future issuances by FADE will serve to refinance the tranches of the fund that fall due, which are valued at approximately €24,000 million.