Greece launches 15-year state bond

Greece launches 15-year state bond

Greece on Monday announced the launch of a 15-year state bond, Public Debt Management Authority said in an announcement to the stock market.
The announcement came 48 hours after Fitch upgraded the country's credit rating to BB from BB-. It is the first time that Greece attempts to tap international capital markets with a bond maturing after 2032, the year that long-term measures for Greek debt come to an end. The Greek state hired Barclays, BNP Paribas, BofA Securities, Goldman Sachs International Bank, HSBC and J.P. Morgan for the bond issue.
Meanwhile, Greek state bond prices rose significantly, with the 10-year bond yield falling to new historic lows in the domestic electronic secondary bond market on Monday.
The 10-year yield fell to 1.137 pct from 1.31 pct on Friday, with the five-year bond yield falling to 0.32 pct from 0.43 pct, respectively. Traders attributed this development to a decision by Fitch on Friday to upgrade the country's credit rating by one notch to BB from BB- and the country's credit rating outlook to positive from stable. This development faciliates the country's new return to international capital markets with a 15-year bond issue.
Fitch analysts take it for granted that the Greek government will renegotiate a fiscal target from 2021 onwards as part of an agreed process with European institutions, which will be based on the country's fiscal and growth performance and the implementation of reforms. A reduction of targets by one percentage point of GDP could give a significant boost to the economy. They also envisage that the general government's debt will fall to 161 pct of GDP by 2021 from 181.2 pct of GDP in 2018.
 
 

Cookies Preferences
Choose Type of Cookies You Accept Using


These cookies are required for the website to run and cannot be switched off. Such cookie are only set in response to actions made by you such as language, currency, login session, privacy preferences. You can set your browser to block these cookies but our site may not work then.


These cookies allow us to measure visitors traffic and see traffic sources by collecting information in data sets. They also help us understand which products and actions are more popular than others.


These cookies are usually set by our marketing and advertising partners. They may be used by them to build a profile of your interest and later show you relevant ads. If you do not allow these cookies you will not experience targeted ads for your interests.