Repsol YPF, via its Repsol International Finance BV unit, completed within 48 hours, and with an ample oversubscription, the issue of 1.0 billion euros in 10-year bonds. With this issue, which has a 4.625% coupon, Repsol YPF has taken advantage of improved market conditions to anticipate the amortization of debt that was scheduled to mature in July and August 2005, and which had coupons of 7.45% and 7.0%, respectively. The strong reduction in debt undertaken by the Company in recent months, together with its solid financial position, allowed Repsol YPF to issue the bonds with a very tight spread versus market references (mid-swap +57 basic points). The banks participating in this bond issue were La Caixa, BBVA, BNP Paribas, Citigroup, Merrill Lynch and SCH. Repsol YPF´s net debt as of June 30, 2004 was 5.597 billion euros, versus 6.424 billion euros at the end of June 2003. Repsol YPF´s debt ratio has been reduced from 25.9% at the end of the first half of 2003, to 22.6% for the same period in 2004.