Greece raises 1.5 billion euros from reopening of 10-year bond issue

Greece raises 1.5 billion euros from reopening of 10-year bond issue

Greece raised 1.5 billion euros from the reopening of a 10-year bond issue, with the yield of the bond set at an historic low of 1.5 pct. What is more important is the increased participation of institutional investors in the bookbuilding process that markedly limited the participation of hedge funds.
Commenting on this development, Greek Finance Minister Christos Staikouras said, "The country's economy is successfully making another step according to our plan. The country, under the New Democracy government, has successfully accessed international markets for the second time this year, raising 1.5 billion euros with an interest rate of 1.5 pct. The interest rate of the previous 10-year bond issue on March 12, 2019 was 3.9 pct. In addition, demand was big, significantly exceeding the offer."
 Staikouras added that "all these show that this is an exceptional quality issue and proves that the country, methodically and with determination, strengthens its credibility in international markets and creates, step by step, the preconditions for its return to full normality."
The new bonds carry the same terms as the March bonds (maturing in March 2029 and offering a coupon of 3.875 pct) but their yield is down bu around 61 pct. In March, the government raised 2.5 billion euros and bids exceeded 11.8 billion euros. Hedge funds’ participation was 11 pct. Today’s reopening of the 10-year bond is the fourth exit in capital markets this year, with Greece raising 7.5 billion euros so far, exceeding its 2019 borrowing program by 500 million. Following procedures for an early repayment of part of IMF’s loans worth 2.9 billion euros, borrowing needs for 2020 are close to zero while cash reserves are enough to cover the country’s funding needs to 2023.
Staikouras in comments made to ERT TV early this morning said the reopening of the issue was not designed primarily to raise funds but to establish a regular contact with markets, improving the yield curve, expanding the participation of institutional investors and replacing short-term securities with medium-term debt, sending an additional positive signal to investors and credit rating firms.
The bookbuilding process opened with the initial pricing set at 1.55 pct. The 10-year bond in the electronic secondary bond market yielded 1.47 pct.
PM Mitsotakis on bond yield
The historic low of the bond yield "is yet another vote of confidence in Greece's economy and in strong growth prospects," Prime Minister Kyriakos Mitsotakis said in a tweet he posted on his account on Tuesday.
Mitsotakis also congratulated the Service of Managing Public Debt and the Finance Ministry "for their successful efforts."

Previous Next
Test Caption
Test Description goes like this
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.