Subscribe to a Global-Regulation Premium Membership Today!

The State Debt is the set of funds borrowed by the State through public issuance, concertation of credit operations, subrogation in the debtor position of a third party or, in general, by any other the financial operation of the State, with a view to financing the State's expenditure or to constituting active cash positions.

Article 94 of Law 47/2003, of November 26, General Budget, states that the creation of State Debt shall be authorized by law. According to Article 98 of this same rule, it is up to the Minister for Economic Affairs and Competitiveness to authorise the formalisation of debt transactions.

In Article 47 of Law 48/2015 of 29 October, of the General Budget of the State for the year 2016, the Minister of Economy and Competitiveness is authorized to increase the State's debt, with the limitation that the The amount of the outstanding balance of the same in effective terms as at 31 December 2016 does not exceed the corresponding balance as at 1 January 2016 at more than 52,882,394,53 thousand euro. This limit shall be effective at the end of the financial year and may be exceeded in the course of the financial year and shall be automatically reviewed in accordance with the assumptions laid down in Article 47 (2

.

This order incorporates the fundamental content of Order ECC/4/2015 of 13 January, which provides for the creation of State Debt during the year 2015 and January 2016 and, as well as the same, maintains the content of the Standard Collective Action Clauses, as set out in the Annex to Order ECC/1/2014 of 2 January, which provides for the creation of State Debt during the year 2014 and January 2015 and the Collective Action Clauses are collected normalised.

Finally, Order ECC/1695/2012, of 27 July, of delegation of powers, establishes as a general rule in its additional provision second, b) that the holders of the General Secretaries will be supplied by the organs According to the order in which they are cited in Royal Decree 345/2012, of 10 February, for which the basic organic structure of the Ministry of Economy and Competitiveness is developed and the Royal Decree 345/2012 is amended, Decree 1887/2011 of 30 December 2011 establishing the basic organic structure of the ministerial departments. However, as provided for in Article 9.2. (a) of that order, in relation to the debt jurisdiction, delegated to the holder of the General Secretariat of the Treasury and Financial Policy, in the case of operations on Treasury Letters and Bonds and Obligations of the State, will be as planned in the Order of Debt Creation in force each year. In relation to these transactions, this order incorporates the contents of Order ECC/4/2015 of 13 January, which provides for the creation of State Debt during the year 2015 and January 2016 and, like the same, provides for the holder of the Secretary General of the Treasury and Financial Policy, in case of vacancy, absence or illness of the Director General of the Treasury, will be supplied by the Deputy Director General of Financing and Management of Public Debt, not following the rule generally set.

By virtue of the above, and in order to implement State Debt financing during 2016 and January 2017, I have:

Article 1. Amount of the debt issue.

1. The General Secretariat of the Treasury and Financial Policy shall issue during the year 2016, on behalf of the State and by delegation, Debt of the State in accordance with what is available in this order, for the nominal amount that is advisable according to the the state financing situation, the subscription requests received, the conditions of the same and the general market conditions, in such a way as to add to what was issued or contracted in January 2016, pursuant to the provisions of the Order ECC/4/2015 of 13 January, which provides for the creation of State Debt during the year 2015 and January 2016 and whatever is issued or contracted by the State for the entire year under way in all modalities of State Debt does not exceed the limit of increase that for the living balance of the Debt establishes Article 47 of Law 48/2015, of October 29, of the State Budget for the year 2016.

2. For the purposes of Article 94.2 of Law 47/2003 of 26 November, the authorisation to issue or contract debt of the State contained in the previous paragraph shall be extended to the month of January 2017 up to the limit of 15% of the authorised for the year 2016, with the amounts thus issued within the limit to be authorised for the year 2017 by the General Budget Law of the State for that year.

Article 2. Formalization of the issuance of the Debt.

Without prejudice to the provisions of Article 7, the General Secretariat of the Treasury and Financial Policy shall issue State debt in euros in the following modalities: Treasury bills, State Bonds, and State Obligations. Bonds or Obligations of the State whose capital or interests are referred to an index in the form that sets its emission standard may also be issued.

1. The State Debt will receive the denomination of Treasury Letters when it is issued, discounted or rewarded, and no longer than twenty-four months. Your amortization value will be at par.

2. The State Debt will receive the denomination of State Bonds or State Obligations when its term of issue is between two and five years or higher than this period, respectively. The redemption value of the State Bonds and Obligations shall be at par, unless a different value is set in the resolution of the General Secretariat of the Treasury and Financial Policy for which the issue is available. In the case of early amortisation by repurchase or exchange, the price may be different from par. The holder of the General Secretariat of the Treasury and Financial Policy is authorized to group the State Bonds and the State Obligations under the denomination of Treasury Bonds or another that is advisable to identify the debt of the Treasury. characteristics, in accordance with the practice of national or international markets.

3. In order to facilitate the management of amortisation operations and the aggregation of Treasury bills, Bonds or State Obligations, the time limit for the issuance of these securities may differ from the exact years or months quoted in the prior to the day that is necessary, without necessarily changing the name of the product.

4. For the purposes of Article 98.3 of Law 47/2003, of 26 November, the set of new references of State Debt securities with original maturity declared in excess of one year incorporates the specifications of the Collective Action as set out in the Annex of Order ECC/1/2014 of 2 January, which provides for the creation of State Debt during 2014 and January 2015 and the Collective Action Clauses are collected. Likewise, the rights resulting from the segregation of debt modalities that incorporate Collective Action Clauses remain subject to that same regime.

Article 3. Representation of the Debt.

The State Debt in securities denominated in euro that is put into circulation pursuant to Article 2 shall be represented exclusively by means of a note.

Article 4. Dates of issue and amortization.

1. The Debt to be issued shall have the dates of issuance and amortization as determined by the resolution of the holder of the General Secretariat of the Treasury and Financial Policy for which the issue is available.

2. In addition, the holder of the General Secretariat of the Treasury and Financial Policy may establish, in the resolution at issue, one or more dates on which the State, the holders, or one and the other, may require the redemption of the Debt before the date fixed for its final repayment, in which case the price at which the debt will be valued for the purposes of its depreciation in each of those dates, as well as the procedure and, where appropriate, conditions for the repayment of the debt, must be fixed. exercise of that option on the assumption that the same is attributed to the holders.

3. In securities debt, the exercise of the right to early repayment by the State shall be exercised, unless the issue has a special and own more favourable procedure for the holder, as set out below:

(a) The resolution of the General Secretariat of the Treasury and Financial Policy providing for the early repayment of a State Debt issue shall be published at least two months in advance of the date of the that the reimbursement should take place. The submission of invoices for reimbursement will be made within the time limits and by the usual procedures.

(b) In the area of the corresponding agreement, the Banco de España will make public the identification data of the debt whose early repayment has been arranged, in a way analogous to the results of the debt repayment draws Public.

4. Where the option of early repayment of the debt in securities, in accordance with the rules of creation or contraction, is exercised by the holders, the holders shall submit the application for at least one month in advance of the date of reimbursement. The General Secretariat of the Treasury and the Financial Policy shall establish, if necessary, the conditions for the exercise of the option of amortisation, making the presentation of the invoices within the time limits and the procedures common.

5. Pursuant to Article 102.5 of Law 47/2003 of 26 November 2003, the procedures laid down in paragraphs 3 and 4 shall apply for the exercise of the option for the early repayment of the debts assumed by the State in securities, even if the assumption is only the financial burden, except that the mode of exercise of the option included in the original regulation of the issue is more favourable to the holder. Likewise, the conclusion and publication of the results of the redemption draws of the said Deures shall be in accordance with the debt issued by the State, without prejudice to the fact that, where appropriate and no rights of the holders, the procedure applied before the assumption by the State is maintained.

Article 5. Emission procedure.

1. The issuance of State Debt shall be made by the General Secretariat of the Treasury and Financial Policy by one of the following procedures or a combination thereof:

(a) By auction, which shall be carried out in accordance with the rules made public before the conclusion of the auction, among the general public, between authorized colocers or among a restricted group of such persons, acquire special commitments in respect of the placement of the debt or the functioning of its markets.

(b) By means of simple selling operations, which shall consist of direct State debt placements to one or more counterparties, or sale transactions with a repurchase agreement. These operations may be carried out for new issues, extensions of existing emissions, or for securities that the Treasury has on its securities account. The procedure to be followed in these operations shall as a rule be as follows:

1. The entities holding the status of the Public Debt Market Creator of the Kingdom of Spain may act as counterparties of the General Secretariat of the Treasury and Financial Policy in these operations. These entities may subsequently maintain the debt of the State acquired in their own portfolios or transmit it, unless expressly restricted to their placing on the market.

2. The General Secretariat of the Treasury and Financial Policy will communicate to the Market Creators the requirements and conditions necessary for the operations to be submitted. Requirements relating to the minimum volume of such financing operations, the maximum emission cost, or the structure of the operation may be included among others.

3. The Market Creators will be able to present to the General Secretariat of the Treasury and Financial Policy the proposals they consider appropriate. These proposals may relate only to issues of outstanding State debt if a communication from this General Secretariat expressly mentions the possibility of carrying out these operations with such emissions.

4. The proposals presented by the Market Creators will be valued by the General Secretariat of the Treasury and Financial Policy, taking into account the proposed financial structure, the complementarity of the operation with the the regular financing programme, the diversification of the investment base or the potential savings in costs compared to the like in euro, among other criteria.

5. The General Secretariat of the Treasury and Financial Policy will produce a report reflecting the benefits to the Public Treasury of those operations that have been accepted.

6. Notwithstanding the above, exceptionally, other entities other than the Market Creators, which have the status of Account Holder in the Public Debt Market, may act as a counterpart in these operations. Note that the Order of the Minister of Economy and Competitiveness authorising the issuance is provided for in this account. The characteristics of the operations shall be agreed bilaterally between the General Secretariat of the Treasury and Financial Policy and the Entity of Account in the Public Debt Market in Account Annotations.

(c) By means of the syndication procedure, which shall consist of the transfer of part or all of an issue at an agreed price to several financial institutions to ensure their placement. The procedure to be followed in these operations shall as a rule be as follows:

1. No new emissions or extensions of existing emissions may be issued through the syndication procedure.

2. The General Secretariat of the Treasury and Financial Policy will select the participating financial institutions on the basis of financial, commercial or potential criteria for debt markets, command to lead the issue.

3. The issue price, as well as other characteristics of the issue, including the coupon or the due date, will be determined by the General Secretariat of the Treasury and Financial Policy after consultation with the institutions. selected.

4. The General Secretariat of the Treasury and Financial Policy will inform the entities to which a mandate has been given about their duty to respect confidentiality at all stages of the issuance process. Information that has not been expressly consented to by the General Secretariat of the Treasury and Financial Policy shall not be disclosed to persons outside the transaction.

5. The selected financial institutions will seek investors to cover the issue, and will also have the possibility to submit requests for their own portfolio. In case the demand exceeds the expected volume of issuance, the selected financial institutions will make a proposal to distribute the issue to the General Secretariat of the Treasury and Financial Policy. The General Secretariat of the Treasury and Financial Policy will assess the adequacy of the distribution proposed by the selected financial institutions and will be able to make modifications to improve the distribution of the issue, to achieve greater diversification of investors, or improve the performance of the issue on the secondary market after issuance.

d) By any other technique deemed appropriate, depending on the type of operation concerned.

2. In order to carry out the issuance, the holder of the General Secretariat of the Treasury and Financial Policy may formalize with the entity or entities selected or awarded the relevant conventions and contracts, in which they may be agreed administration, subscription and placement fees. The procedures for the award shall be determined in the same way as those described in Articles 9 and 15, both inclusive, as well as the form and extent to which they apply to the placing of such emissions, shall be determined. provided for in Article 7 and as soon as it is necessary to carry out the issue. The functions of the selected entities shall be terminated, including in their case, with the entry of the amount of the issue into the Treasury account at the Bank of Spain at the date fixed.

Article 6. Interest rate and coupon payment.

1. The Treasury bills will be issued at the discount or prize, with their issue price determined either by auction or by the holder of the General Secretariat of the Treasury and Financial Policy.

2. Bonds and State Obligations shall be issued with the nominal interest rate determined by the holder of the General Secretariat of the Treasury and Financial Policy. The resolution of the General Secretariat of the Treasury and the Financial Policy at the disposal of the issue may also provide for the interest rate to be referenced to an index.

The head of the General Secretariat of the Treasury and Financial Policy will set the payment dates for each of the interest coupons. In particular, the accrual period of the first post-payable coupon may be increased or reduced in the days necessary for the remaining coupon periods to be complete and the maturity of the last coupon periods to coincide with the date of redemption. final.

The holder of the General Secretariat of the Treasury and Financial Policy may also provide that these securities take the form of zero coupon or single coupon or incorporate any special characteristics such as lots or other occasionally used in these markets. The denomination of the securities may be modified to account for such special forms or characteristics.

The holder of the General Secretariat of the Treasury and Financial Policy may also establish the method of updating both interest and capital in the case of issues referenced to an index.

Article 7. Public subscription procedure for the State Debt.

1. Any natural or legal person may make requests for subscription of the Debt of the State whose issuance is available, with the exceptions that, where appropriate, provide for the resolutions of the General Secretariat of the Treasury and Financial Policy. the auctions, or the specific rules governing the activity of figures with a qualified participation in the Public Debt Market, such as the Public Debt Market Creators of the Kingdom of Spain, and without prejudice of the provisions set out in Article 5.

2. Investment requests shall be considered to be firm commitments for the acquisition of the requested debt, in accordance with the terms of the issue, and their non-payment in full on the dates set for that purpose in the issuance regulations shall the requirement of the corresponding liability, or, where appropriate, the loss of the quantities required as security, in the form provided for in Article 15 (5).

Requests shall be submitted by participating in the auctions that are regulated in this order or by acquiring the securities in the periods and under conditions determined by the holder of the General Secretariat of the Treasury and Financial Policy. in accordance with the provisions of Article 5, in any event, the rules laid down for that purpose shall be observed.

3. Within the framework of the corresponding agreement, the Banco de España will act as a Public Treasury Agent in the subscription of the State Debt, without prejudice to the provisions of Article 5.

Article 8. Auction calendar.

1. The General Secretariat of the Treasury and Financial Policy will draw up an annual auction calendar to be published in the "Official State Gazette" before 1 February of the current year.

They shall have the consideration of ordinary auctions to be held with the periodicity set out in the annual calendar.

2. Without prejudice to the provisions of the previous paragraph, in the light of market conditions, the development of emissions during the year or the desirability of putting into circulation new modalities or instruments of State debt different time limits within the existing modalities, the holder of the General Secretariat of the Treasury and Financial Policy may convene special auctions not included in the annual calendar or cancel any of the ordinary auctions programmed.

Article 9. Procedure of the auctions. Minimum content of the call.

1. Unless the holder of the General Secretariat of the Treasury and Financial Policy establishes a special procedure in the call for auction, the procedure to be followed is the procedure laid down in this Article and the following up to and including Article 15.

2. The auctions shall be convened by resolution of the General Secretariat of the Treasury and Financial Policy, which shall be published in the "Official State Gazette".

3. The decisions of the holder of the General Secretariat of the Treasury and Financial Policy for which auctions shall be held shall determine at least:

a) The issuance and amortization dates of the State Debt that is issued.

b) The date and time limit for filing petitions in the Banco de España's offices.

c) The auction resolution date.

d) The date and time limit for payment of the State Debt awarded in the auctions.

e) The nominal amount of the Debt offered at auction, when the market is wanted to communicate such information, the amount offered for one or more auctions of the same or different instruments may be established.

(f) The minimum nominal value of the bids, when the holder of the General Secretariat of the Treasury and Financial Policy makes use of the powers conferred on it in Article 10.4.

g) The possibility or impossibility of presentation of uncompetitive requests.

h) Where appropriate, the special character of the auction.

4. When the auctions that are called State Bonds or State Obligations, the resolutions shall determine, in addition:

a) The annual nominal interest rate and coupon payment dates.

(b) The existence, where appropriate, of early repayment options and the conditions for their exercise.

(c) The amount of the accrued coupon, if applicable, to the date of disbursement and entry into circulation of the securities, expressed as a percentage and rounded to two decimal places.

d) In the case of either Bond or Obligations referenced to any index, the applicable index and method of update shall be indicated. If the issue is related to any price index, the annual real interest rate shall be published in place of the nominal interest rate. In this case, the applicable value of the multiplier index or the indexation coefficient at the date of issue shall also be made public, for the purposes of assessing coupons, the coupon running on their case and the principal in nominal terms.

5. In the case of Treasury Letters, it shall be specified whether competitive bids are made in terms of price or interest rate.

6. Resolutions may specify additional conditions, subject to the validity of the offers for compliance.

7. In both ordinary and special auctions, extensions of previous emissions or new emissions may be offered.

Article 10. Classes and minimum value of the offers.

1. Both competitive and non-competitive bids may be formulated.

2. The competitive bids are those in which the price is indicated, expressed as a percentage of the nominal value, which is willing to pay for the debt or the interest rate as the percentage requested. Only a competitive request for each bidder or host entity for each price or interest rate may be made for each value.

In Treasury bills, the price or interest rate shall be expressed as a percentage of three decimal places, the last of which may be any number between zero and nine, both included.

In the State Bond and Obligations auctions, the price shall be expressed as a percentage of two decimal places, the last of which may be any number between zero and nine, both included.

In competitive bids that are presented to the auctions of State Bonds and Obligations not referenced to any index, the price that is prepared to be paid for the Debt that is requested will be made excuse, that is, deducted, where appropriate, the amount of the accrued coupon due, and the price to be paid for the debt requested shall be the result of adding to the price entered in the offer the amount of the coupon run expressed as a percentage and rounded to two decimals.

In competitive bids that are presented to the auction of Bonds and Obligations of the State referenced to an index, the price that is prepared to be paid for the Debt that is requested will be made excuse and without having in consideration of the application of the corresponding multiplier index or indexation coefficient. The price to be paid for the debt that is requested shall be the result of applying, as determined in the corresponding emission standard, the multiplier index or the indexation coefficient to the result of adding to the price entered in the tender the amount of the run coupon expressed as a percentage.

The holder of the General Secretariat of the Treasury and Financial Policy may vary the way of expressing the price or the interest rate in the auctions when it is appropriate because of the term of the asset or because another circumstance so I advised. In addition, in the resolutions calling for Treasury bills, it will be determined whether competitive bids should be expressed in terms of price or interest rate.

Competitive offers that do not specify the price or interest rate, as appropriate, will be considered null and void for all purposes. The holder of the General Secretariat of the Treasury and Financial Policy may limit the number and maximum amount of competitive bids that each participant may present at the auction, as well as set a minimum price or a maximum interest rate. to have them validly presented to it.

3. Non-competitive offers are those in which no price or interest rate is indicated. A non-competitive request may only be made for each value by each bidder or host entity. As a general rule, the maximum nominal amount of the non-competitive claims submitted by each bidder shall not exceed EUR 5 million. The Salarial Guarantee Fund, the Credit Entities Deposit Guarantee Fund, the Social Security Reserve Fund, the Investment Guarantee Fund, the "State Post and Telegraph Society S. A.", the Company are allowed to State of Industrial Participations (SEPI), the Spanish Data Protection Agency, the Fund for the Prevention and Rehabilitation of Social Security, the Fund for Bank Ordered Restructuring (FROB), or any other public entity or company of public ownership determined by the holder of the General Secretariat of the Treasury and Policy Financial, present non-competitive claims for a maximum nominal value of EUR 500 million.

4. The minimum nominal amount of bids, whether competitive or non-competitive, shall be EUR 1,000. Requests for higher amounts must be multiples of the minimum amount quoted.

The holder of the General Secretariat of the Treasury and Financial Policy may amend the amounts referred to in the preceding paragraphs where appropriate for the period of the asset or when any other circumstances so require. advise.

Article 11. Submission of requests or offers.

1. Any natural or legal person may submit tenders in the auctions with the exceptions provided for in the resolutions of the General Secretariat of the Treasury and Financial Policy for which the auctions are to be called, as well as the specific regulatory regulation of the activity of figures with a qualified participation in the Public Debt Market, such as the Public Debt Market Creators of the Kingdom of Spain.

2. With the exceptions provided for in the resolutions of the General Secretariat of the Treasury and Financial Policy for which the auctions and the specific rules governing the activity of figures with a participation are to be called qualified in the Public Debt Market, such as the Public Debt Market Creators of the Kingdom of Spain, both competitive and non-competitive bids will be presented at the Banco de España, directly or through some of the (a) the following persons or entities operating in Spain: Banks, Savings Banks, Credit Unions, Securities and Notaries Companies and Agencies. In addition, the Management Companies of Collective Investment Institutions or of Pension Funds and the Management Societies of Carberas registered in the corresponding Official Records may submit requests for subscription of the Debt for the Collective Investment Institutions, Pension Funds or the portfolios they administer.

The entities or persons who receive debt subscription orders will be responsible for carrying out all the necessary formalities at the Banco de España, and must be able to do so at the date and time indicated in the Bank of Spain. the resolution to which the auction was called. No tenders submitted subsequently shall be admissible.

The host of the requests will observe the procedures that you have established or establish the Banco de España.

3. The tenders shall include the name or social name of the offeror, the number of his national identity or tax identification document, as established, as well as his full address.

4. Tenders shall specify the total nominal amount requested in subscription and, in the case of the competitive ones, the price to be paid for the debt or the interest rate requested, as set out in Article 10.

5. In the offers submitted directly to the Banco de España by natural and legal persons resident in Spain, who are not authorized to operate in the Public Debt Market in Annotations, it will be mandatory as an entity to deposit "Banco de España". from Spain-Entity of State Debt " giving acknowledgement of receipt of the petitions submitted.

6. The requests of the subscribers to be filed in the offices of the Banco de España for whom it is not Entity Gestora or Holder of Accounts in the Market of Public Debt in Annotations, must be accompanied by a proof of being deposited at the same rate of at least 2% of the nominal amount requested. This delivery shall be considered as the final settlement of the investment.

Complementary, the Banco de España will establish another percentage on the nominal requested, covering in a single payment the amount of the award of the nominal subscribed. This mode, called "previous deposit", will be the one that will have to observe the requests made through the System of Purchase and Sale of Securities in the Electronic Headquarters of the General Secretariat of the Treasury and Financial Policy.

In any case, 2 percent of the nominal total requested in all the petitions filed directly will have the consideration of guarantee for the purposes of the provisions of article 15.5. The income of the requests of the subscribers presented in the offices of the Banco de España shall be made in cash, by order of debit in the current account of cash or by cheque, either bank or against current account, extended to the public treasury or the Banco de España. The Banco de España may also modify these payment mechanisms, subject to prior authorization from the General Secretariat of the Treasury and Financial Policy.

When requests are made through the System of Purchase and Sale of Securities at the Electronic Headquarters of the General Secretariat of the Treasury and Financial Policy, the only form of payment accepted will be through one or more bank transfers to the relevant bank account of the Banco de España designated for these purposes for each auction.

The income by cheque or transfer will be made in good time for the Banco de España, with the compensation systems it has established, to be able to verify the good end of the same before the day of the resolution of the the auction, and, only when that circumstance occurs, the offer shall be validly presented.

The deposits mentioned will be made available to the General Secretariat of the Treasury and Financial Policy and will form part of the payment in the event that the offer is accepted. If the auction is declared deserted or if the offer is not accepted, the previously constituted deposit will be returned to the petitioner. The refund shall be ordered by the Bank of Spain on the first working day following that of the auction resolution, and the entities concerned shall be made available as soon as possible by credit to the current account or savings account specified in the effect.

Article 12. Resolution of the auctions.

1. The resolution of the auctions shall be made by the holder of the General Secretariat of the Treasury and Financial Policy, on the proposal of a Commission composed of two or more representatives of the General Secretariat of the Treasury and Financial Policy and two representatives of the Banco de España, as well as a representative of the Delegation in the General Secretariat of the Treasury and Financial Policy. The members of the Commission shall sign a report describing the development of the auction and its outcome.

2. Applications received and the deadline for submission of applications for each auction, the General Secretariat of the Treasury and the Financial Policy, on a proposal from the Commission referred to in the preceding paragraph, shall be determined once classified the competitive requests of the largest at least price offered, the nominal or effective volume that you want to issue in the auction and the minimum price accepted. For auctions of Treasury Letters in which tenders are issued in terms of interest rates, the classification of tenders shall be made from a minor to a higher interest rate, by determining the holder of the General Secretariat of the Treasury and Financial Policy the nominal or effective volume to be issued and the maximum interest rate accepted.

All requests whose offered price is equal to or greater than the accepted minimum or, if they have been formulated in interest rates, those in which the requested interest rate is equal to or less than the accepted maximum, will remain automatically awarded, unless for that minimum price or maximum interest rate it was decided to limit the award. In the latter case, once the nominal amount free of prorate is fixed, a proportional distribution shall be made to the nominal non-exempt of each of these requests.

3. For auction of requests in terms of price, the weighted average price, expressed as a percentage of the nominal value rounded to three decimal places, shall be determined with the accepted competitive bids. If the requests have been formalised in terms of interest rate, the resulting weighted average interest rate shall be determined, expressed as a percentage rounded by default to three decimal places.

In case of a Bond or Obligations referenced to an index, the weighted average price resulting from the auction shall be determined without taking into account the corresponding multiplier index or the coefficient of indexing and shall be expressed as a percentage of the nominal value rounded to three decimal places, unless the relevant emission standard determines another procedure.

4. The price of the award of the securities shall be determined as follows:

a) Auctions in terms of price. For all requests for which the price offered is equal to or greater than the weighted average price, the award price shall be that average price plus the amount of the coupon referred to in Article 9.4.c. For all requests for which the price offered is less than the weighted average price and above or equal to the minimum price accepted, they shall be awarded at the price offered, plus the amount of the coupon.

In case of a Bond and Obligations referenced to some index, for all requests whose price offered is equal to or greater than the weighted average price, the award price shall be the average price increased in the amount of the coupon referred to in Article 9.4.d. For all requests for which the price offered is less than the weighted average price and above or equal to the minimum price accepted, they shall be awarded at the price offered, plus the amount of the coupon. In both cases, they shall be updated by means of the corresponding multiplier index or the indexation coefficient, or as indicated in the corresponding emission standard.

(b) Treasury bills issued in terms of interest rate. In this case, all requests whose interest rate is less than or equal to the weighted average interest rate shall be awarded at the price equivalent to that average interest rate. Requests where the requested interest rate is greater than the weighted average interest rate and less than or equal to the accepted maximum shall be awarded at the price equivalent to the interest rate requested. For the calculation of the price to be paid for each of the requests awarded, the prices equivalent to the requested interest rates and the weighted average shall be applied to all decimal places, and only for the purposes of publication of the results of the the auctions shall be expressed with three decimal places.

(c) The holder of the General Secretariat of the Treasury and Financial Policy may determine, on a proposal from the Commission referred to in paragraph 1 of this Article, the exclusive effects of the calculation of the price and the interest rate weighted average, no account is taken of those competitive claims that are manifestly not representative of the market situation in order not to distort the outcome of the auction.

d) In both types of auctions, non-competitive claims will be accepted in full, provided that some competitive request has been accepted, and that the weighted average interest rate is not negative. The award price of the securities corresponding to this class of claims shall be the weighted average price increased by the amount of the coupon or the price equivalent to the weighted average interest rate, as appropriate.

In the case of the treated Bonds or Obligations referenced to some index they will be awarded to the weighted average price increased in the amount of the coupon, updated by the corresponding multiplier index or coefficient indexing or as indicated in the corresponding emission standard.

e) Notwithstanding the foregoing, the holder of the General Secretariat of the Treasury and Financial Policy may establish in the resolution calling for the auction an alternative procedure for determining the award price. of the values. In particular, it may be used to award the securities to the price corresponding to each offer, increased by the amount of the coupon, or at the price equivalent to the interest rate requested.

Non-competitive requests shall be awarded as described in Article 12.4.d).

Article 13. Publication of the emission conditions and the results of the auction.

1. The outcome of the auction resolution will be published by the Bank of Spain and the General Secretariat of the Treasury and Financial Policy through the means that are timely determined. The immediate dissemination of results will be carried out in accordance with the procedures which guarantee the highest level of access to them for the usual market operators, in accordance with the usual techniques in the financial markets. The results of the auctions shall also be made public by means of a resolution of the General Secretariat of the Treasury and Financial Policy published in the "Official Gazette of the State".

2. The publication of the results of the auction shall include at least the nominal amount requested, the nominal amount awarded, the minimum price accepted, the weighted average price of the accepted claims and the equivalent effective interest rate and the domestic performance corresponding to the weighted average and minimum prices accepted from the auctions of Treasury and State Bonds or State Obligations, respectively. The auctions of Treasury Letters in terms of interest rates shall be made public with the nominal amount requested, the nominal amount awarded, the maximum interest rate accepted, the weighted average interest rate of the accepted claims and the prices equivalent to those interest rates.

However, in the auction of Bonds and Obligations referenced to some price index the published internal returns will be expressed in real terms. Also, in auctions that are made from issues referenced to other indices, other than prices, the calculation of the published internal returns shall be carried out without considering any updates on the future evolution of the index.

3. Following instructions from the General Secretariat of the Treasury and Financial Policy, the Bank of Spain will disseminate the content of the resolutions establishing the conditions for the issuance of Treasury bills, bonds the State or State Obligations, as well as the result thereof, by means of advertisements in the media, or dissemination of information to the markets and in their own offices. The cost of the same will be charged as an issue cost, giving up your account in the form established and in conjunction with the remaining expenses. The General Secretariat of the Treasury and Financial Policy will be able to develop by itself the dissemination in the aforementioned media and in the "Official Gazette of the State", communicating it to the Banco de España in order to limit the diffusion to its own means. In any case, the use of means which, within the necessary agility, will facilitate the equal access of operators to the information shall be sought.

Article 14. Calculation of the interest rate.

1. In Treasury Letters auctions, the equivalent annual effective interest rates and rates shall be calculated by means of the formula:

An image appears in the original. See the official and authentic PDF document.

Provided that the Letters were issued within a period equal to or less than a calendar year.

When Treasury Letters are issued in excess of a calendar year, the formula shall apply:

An image appears in the original. See the official and authentic PDF document.

In both, P is the percentage price corresponding to the offer, the minimum accepted or the weighted average, as the cases, d is the number of days until the maturity of the Letters, and i is the effective interest rate yearly expressed as one.

2. The internal performance corresponding to the accepted minimum price and the weighted average price of the State Bond and Obligations auctions shall be determined using the following expressions:

Here are several images in the original. See the official and authentic PDF document.

Where P is the minimum accepted price or weighted average price expressed as a percentage and excusable; R is the annual internal performance corresponding to the weighted average and accepted minimum prices expressed as per cent. (ii) the rate of return corresponding to the period of accrual of the coupons (annual, half-yearly, quarterly, etc.) for such prices, expressed as per one; n is the number of postpayable coupons existing in one year (their value will be 1 in zero or issued coupon issues); F_i is the amount per cent of each maturity by interest and/or amortisation; m is the number of interest and/or amortisation maturities up to the end of the amortisation date; q_i is the number of full periods of coupon accrual between the date of disbursement and the date of the due to be computed (if this is a zero coupon issue or issued at the discount will be considered annual periods); d_i is the number of days from the disbursement date to the date resulting from subtracting q_i coupon periods to the due date that is computed; B_i is the number of days between this date that results from subtracting q_i coupon periods and the one obtained from subtracting the same coupon period and C is the run coupon expressed as a percentage and rounded to two decimal places, which will be calculated according to the following formula:

An image appears in the original. See the official and authentic PDF document.

Where C is the amount of the coupon run, I is the gross amount of the coupon expressed as a hundred, d_c are the days from the start of accrual of the coupon to the disbursement date and d_t are the days of the period of the coupon accrual.

Due dates shall be the notional amounts shown in the terms of the issuance, except for the interest and amortisation maturity corresponding to the final redemption date of the issue to be taken as a date. the actual payment date is due.

In the resolution of the General Secretariat of the Treasury and Financial Policy, which provides for the issuance of Bonds or Obligations of the State referenced to an index, these formulas may be adapted to the particularities of these values according to the usual practices in the financial markets.

Article 15. Payment of the nominal awarded at the auction.

1. If the lodging of petitions or bids at the auction was made directly by the offeror at the Banco de España, giving account of 2% of the nominal amount requested, the Treasury account must be entered in the Bank of Spain, the payment supplementary up to the actual amount of the subscription, before the date and time fixed in the auction call. The income may be made by the means indicated for the minimum income of 2%, before the date and time fixed in the auction call.

For those requests that were formalized with the delivery of the prior deposit and this was higher than the amount of the subscription, the Banco de España will return the surplus the day after the auction resolution. If the prior deposit is insufficient, the subscriber shall be obliged to pay the additional part at the date and time communicated by the Banco de España.

2. If the presentation was made by or through the entities or persons referred to in Article 7, the effective amounts of the requests awarded shall be due on the date of disbursement in the current accounts of the designated cash In the case of direct debit, or in another case, the presenters will have to enter into the public treasury both the amount of their own subscriptions and those of third parties that they have channeled before the date and time indicated for this in the call for auction.

3. The presenters referred to in Article 7.1 shall deliver to those who have carried out by their mediation the submission of accepted tenders, at least the amount subscribed by their nominal value and the amount of cash to be paid to them. to enter the Public Treasury account.

4. The Bank of Spain will also make the presentation directly and will place the corresponding notes on the debt awarded to the third-party account of the Bank of Spain.

5. Any tender accepted which on the date referred to in paragraphs 1 and 2 has not been effectively made in its entirety shall be deemed to be cancelled, with a loss of 2% of the nominal entered as a guarantee of such offer.

6. In addition, all bids made at the auction by the same bidder, with a loss of the guarantee for each of them, shall be cancelled. The amount of such guarantees shall be entered into the Treasury account.

7. In the case of Bonds and Obligations referenced to any index, the provisions of this order and the corresponding emission standard shall be taken into account.

Article 16. Prorate.

1. Where, once the minimum price accepted at the auction has been fixed, the total nominal amount of the tenders submitted at or above the price exceeds the amount fixed by the holder of the General Secretariat of the Treasury and Financial Policy for the same, shall be carried out on a pro-rata basis. This will only affect the offers made at the minimum price accepted. The same procedure will be followed for offers made in terms of interest rate, affecting the prorating in this case only to offers made at the maximum accepted rate.

2. In all cases, except in the second round of the auctions, the subscription requests shall be exempt as soon as their nominal amount does not exceed EUR 10 000, the amount to be reduced, where appropriate, to the amount necessary to the total amount issued does not exceed the amount set by the holder of the General Secretariat of the Treasury and Financial Policy in the resolution of the auction.

3. Where the application of the pro-rata coefficient to a request the resulting amount is not a whole multiple of the minimum amounts set out in Article 10.4, the following shall be adjusted by default.

4. The holder of the General Secretariat of the Treasury and Financial Policy may amend the pro-rata system described in the preceding paragraphs where the characteristics of the emission procedure to which it is to be applied do not advise system.

5. Without prejudice to Article 5, where necessary, the pro rata shall be carried out by the Bank of Spain. If the procedure for the creation of the Debt prevents the use of the system described in paragraphs 2 and 3 of this Article and the holder of the General Secretariat of the Treasury and Financial Policy has not established another effect, the Bank shall carry out the prorated by applying as soon as possible the principle of proportionality between the nominal requested and awarded.

Article 17. Interest payment and redemption repayments.

1. Payments for the amortisation of Treasury bills, including the implied interest, shall be made in accordance with the provisions of the first, second and third Articles of the Order of the Ministry of Economic Affairs and Finance of 19 July 1985, Royal Decree 1206/1985 of 17 July 1985 on the payment of interest and capital of Public Debt and the condition of financial intermediary to certain Entities. It is therefore not applicable to the general procedure laid down in Article 15 of the Order of the Ministry of Economic Affairs and Finance of 19 May 1987 for the development of Royal Decree 505/1987 of 3 April 1987 for the the creation of an accounting system for the State Debt.

2. The payment of interest and the repayment of the Bonds and Obligations to be issued shall be carried out in accordance with the procedure laid down in Article 15 of the Order of 19 May 1987.

Article 18. Accounting for operations and expenses.

1. The revenue and expenditure incurred by the issuance and repayment of the State Debt to which this order relates and other related charges shall apply to the State Budget in accordance with Article 96 of Law 47/2003 of 26 November. The expenditure shall apply to the budget in force for the programmes 951M and 951N.

2. The Banco de España will account for the operations and expenses incurred on behalf of the Public Treasury, as Agent in the negotiation and management of the State Debt, duly justifying it to the General Secretariat of the Treasury and Policy Financial.

Article 19. Treasurer management operations authorizations.

1. In accordance with the provisions of Article 108.2 of Law 47/2003 of 26 November, in order to facilitate the management of the State's treasury, the General Secretariat of the Treasury and Financial Policy is hereby authorized to carry out Double and Double Sales, also called concurrent.

These simultaneous operations may be carried out on the securities that the Banco de España admits in its monetary policy operations and whose valuation will be the same as that applied by the Banco de España in its operations. of intervention at an equivalent time.

Such double-selling transactions shall be awarded through auctions which shall be regularly convened by the General Secretariat of the Treasury and Financial Policy by means of a resolution setting out the Following ends:

a) The requirements that the entities must meet in order to formulate requests at the auction.

b) The values that can be the object of concurrent operations at each auction.

c) The deadline for concurrent operations to be performed.

These simultaneous operations shall be formalised with the financial institutions which have been awarded at the auctions, without prejudice to the possibility of the provision of services to be agreed in the framework of such operations. the management of guarantees on behalf of the public treasury by central counterparties or the like.

2. In accordance with the provisions of Article 108.2 of Law 47/2003 of 26 November, in order to facilitate the management of the State's treasury, the General Secretariat of the Treasury and Financial Policy is authorized to carry out other operations with Repurchase agreements and, in general, for the temporary acquisition of assets, as well as operations supported by financial collateral arrangements, under the rules of other European Union States, which are subject to high credit quality securities traded on regulated markets.

These operations shall be awarded through auctions to be convened by the General Secretariat of the Treasury and Financial Policy by means of a resolution in which at least the following shall be determined:

a) The requirements that the entities must meet in order to make requests at the auction.

(b) The values on which such operations may be performed. The General Secretariat of the Treasury and Financial Policy may require conditions to ensure the solvency and liquidity of these securities, such as a minimum credit rating granted by the principal rating agencies and/or a balance in minimum circulation of the reference on regulated markets.

The operations referred to in this paragraph shall be formalised with the entities that have been awarded to the auctions, without prejudice to the possibility that the provision of services may be agreed in the framework of the auctions. the management of guarantees on behalf of the public treasury by central counterparties or the like.

3. In accordance with the provisions of Article 108.2 of Law 47/2003 of 26 November, in order to facilitate the management of the State's treasury, the General Secretariat of the Treasury and Financial Policy is authorized to carry out deposit operations. The term and the placement of balances in remunerated treasuries in entities other than the Banco de España.

These operations shall be awarded through auctions convened by the General Secretariat of the Treasury and Financial Policy by means of a resolution in which the terms and conditions of these operations shall be specified.

The General Secretariat of the Treasury and Financial Policy will take appropriate measures to diversify and control counterparty risk, and may establish minimum solvency requirements and compensation clauses as collateral. compliance with the payment obligations in the terms in which it is legally applicable.

4. For the same purpose as the above paragraphs, the General Secretariat of the Treasury and Financial Policy is authorized to implement active lending operations. These operations may be carried out with entities from the State public sector, the Administrations of the Autonomous Communities and the Entities that make up the Local Administration, with States of the European Union and entities that enjoy the guarantee express of these.

The General Secretariat of the Treasury and Financial Policy will take appropriate measures to diversify and control counterparty risk, and may establish minimum solvency requirements and compensation clauses as collateral. compliance with the payment obligations in the terms in which it is legally applicable.

Where appropriate, operations shall be awarded through auctions to be convened by the General Secretariat of the Treasury and Financial Policy by means of a resolution in which the terms and conditions of the tenders are to be specified.

5. Moreover, in accordance with Article 108.3 of Law 47/2003 of 26 November 2003, the assets provided for in Article 108.2 which had been the subject of a guarantee in favour of the Banco de España, as provided for in the sixth provision of Law 13/1994, of 1 June, of Autonomy of the Banco de España, may be temporarily applied by its holders in coverage of the active lending operations of the General Secretariat of the Treasury and the Financial Policy of the State implemented through the Banco de España. To this end, the conditions laid down in that Article 108.3 must be met.

6. The expenditure relating to the State treasury management operations which are authorised shall be borne by the Section 06 'Public Debt' of the State Budget in force.

Article 20. Other authorizations.

The holder of the General Secretariat of the Treasury and Financial Policy is authorized to negotiate and formalize the relevant contracts with the entities mentioned in Articles 5 and 19, and may agree to submit to arbitration or to the referral to foreign legislation or courts, in accordance with the usual rules and clauses in the financial markets, provided that the provisions of Article 23 of Law 47/2003 of 26 November are observed.

Article 21. Supply of the holder of the General Secretariat of the Treasury and Financial Policy.

In relation to the operations on Treasury Letters and Bonds and Obligations of the State, as referred to in Article 9.2. (a) of Order ECC/1695/2012 of 27 July 2012, of delegation of powers, the holder of the General Secretariat of the Treasury and Financial Policy shall be replaced by the Deputy Director General of Financing and Management of Public Debt, in case of vacancy, absence or illness of the Director General of the Treasury.

Single repeal provision. Regulatory repeal.

As of the entry into force of this order, Order ECC4/2015 of 13 January 2015, which provides for the creation of State Debt during the year 2015 and January 2016, will be without effect. However, the Annex to Order ECC/1/2014 of 2 January 2014, which provides for the creation of State Debt during the year 2014 and January 2015, is maintained and the standard Collective Action Clauses are set out in the Annex. the common reference terms of the normalized Collective Action Clauses.

Final disposition first. Regulatory enablement.

The Secretary-General of the Treasury and Financial Policy is hereby authorized to adopt the measures and resolutions requiring the execution of this order.

Final disposition second. Entry into force.

This order shall enter into force on 1 January 2016.

Madrid, December 29, 2015. -Minister of Economy and Competitiveness, Luis de Guindos Jurado.