SPAIN broke the record for the most amount of orders placed for a European government debt sale yesterday, when it priced a new €10bn 10-year bond, the country's largest ever issue. Over 400 investors placed nearly €40bn of orders for Spain's new bond sold via a syndicate of banks, beating a record set by Greece back in 2010, and illustrating the frantic appetite that yield-starved investors have shown for peripheral paper in the first weeks of this year. Lead managers Barclays , BBVA , Citigroup , Goldman Sachs , Santander and Societe Generale initially marketed the bonds at mid-swaps plus 0.185 per cent area, but quickly revised guidance to plus 0.18 per cent area after €22bn orders were placed in the first 30 minutes of the sale. The final spread was set at plus 0.178 per cent as interest continued to grow. The bonds have a coupon of 3.8 per cent and a yield of 3.845 per cent. The state's borrowing costs have been falling to levels not seen since before the global financial crisis. The order book for the deal tops the €25bn of interest Greece collected for a five-year bond back in January 2010 , but falls short of the €44.5bn of orders placed for the European Financial Stability Facility's inaugural five-year sale in January 2011 .
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