Greece’s Public Debt Management Agency (PDMA) on Monday called on bondholders of state securities maturing in 2023, 2024 and 2025 to agree to a swap deal with new bonds maturing in 2027, 2033, 2037 and 2042.
The swap deal covers state bonds of a nominal value of around 4 billion euros.
The deal will allow the ECB to buy more Greek bonds in the framework of its PEPP program.
The Finance Ministry decision to propose a bond swap deal to bondholders – owners of Greek state bonds resulting from a PSI arrangement – is creating more space for Greek bond purchases by the European Central Bank, comments daily kathimerini.
The ECB has already purchased Greek bonds of a nominal value of €30 billion so far.
The purpose of the offer is to normalise Greece’s bond yield curve and supply the market with benchmark bonds that will be more liquid than the outstanding ones to be exchanged, notes reuters.
The offer expires at 17:00 central European time on Dec. 10 and the expected settlement date is Dec. 17.
Greece is offering to exchange outstanding bonds maturing from 2023 through to 2042, with new issues of 2% bonds expiring in April 2027, 3.9% bonds maturing in 2033, 4.0% bonds in 2037 and 4.2% bonds in 2042.
