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Greece welcomes 5-Year bond yield, “exceeded all expectations”

The yield on Greece’s new five-year syndicated bond issue was set at 3.6 pct as the bookbuilding process closed on Tuesday afternoon, local and international media report. the issued bond is the first since the country exited the bailout program in August 2018.

Bids for the Greek bond exceeded 10 billion euros, with the Greek state raising 2.5 billion euros at a yield of 3.6 pct.

The bond’s annual fixed coupon was set at 3.4 pct while the issue was four times oversubscribed, with total bids exceeding 10 billion euros.

State-run ERT television said the initial guidance for Tuesday’s bond sale was a yield of 3.75-3.85 percent. Authorities are hoping the rate to be as low as 3.5 percent, raising 2.5 billion euros ($2.87 billion).

The 5-year bond will mature in April 2024.

The government is planning a cautious return to bond markets.

Finance Minister Euclid Tsakalotos welcomed the results and said the yield of the country’s first post-progamme five-year bond issue had “exceeded all expectations.”

“It was extremely positive that several long-term investors were among those making bids to buy the syndicated five-year bond, thus greatly restricting the number of speculative funds.”

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