A lower spread does not mean a lower coupon: the 2026 and 2022 bonds
Claim
The lower spread means the new bond pays less annual interest than the 2022 bond.Who said it
Claim examined; not attributed to the government
Andorra
Verdict
MisleadingWhat we checked
MISLEADING. The spread falls, but the announced coupon rises from 1.25% in 2022 to 3.87% in 2026.
The investigation
The final terms dated 21/02/2022 specify €500m, a 1.25% coupon, a 99.750% issue price and a 1.302% yield. The government announcement dated 30/09/2026 states €500m, three years and a 3.87% coupon; the spread falls from 71 to 32 basis points. On the face value, annual coupons are €6.25m and €19.35m at the announced rate: a €13.10m difference. These are coupons, not total cost.
Context
The spread compares against a benchmark and can fall while market rates rise. The 2022 bond matures on 23/02/2027; the new bond lasts three years. We do not compare cumulative coupons across different terms.
Right of reply
The government acknowledges higher market rates and claims a relative improvement. Its statement does not claim a lower absolute coupon.
How we reached the verdict
Relative improvement is compatible with a higher announced coupon.
Limitations and unavailable information
The 2026 final terms have not been located. 3.87% is the official announced figure, not certification of the exact contractual rate. Yield, issue price, fees and net refinancing cost remain unconfirmed. The press figure of 3.875% requires contractual confirmation.
Sources and documents
Methodology
We check claims against documents and data, prioritising primary sources. We explain the context, limitations and grounds for our verdict. Editorial review precedes publication; material corrections are documented on this page.
We also verify our own publications.
Reviewed by: Contrast documental i revisió assistits per IA · publicació autoritzada pel propietari
Corrections
No published corrections.