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Strong demand for Greece’s 5-year bond issue, raises €2.5 billion

The five-year bond issued by the Greek state on Wednesday has raised the sum of 2.5 billion euros from the market.

There was very strong demand for the issue during the book-building process, with offers approaching 16 billion euros.

With the syndicated issue, the Public Debt Management Agency has covered the greater part of this year’s loan program, which is expected to reach 7.0 billion euros in total.

With Wednesday’s issue, the Greek state has borrowed 6.0 billion euros so far in 2023.

The interest rate is at 90 basis points above the mid-swap, or roughly 3.92%, while the initial PDMA guidance was five basis points higher at 3.97%.

The new bond matures on June 15, 2028

The raised sum covers almost 80% of this year’s loan program.

Paribas, Citi, Deutsche Bank, Morgan Stanley, Nomura and Piraeus Bank are the underwriters of the syndicated issue.

In the secondary market on Tuesday, the benchmark Greek five-year bond was trading at a yield of 3.75% from 3.62% the day before, while the yield on the Greek 10-year bond has risen to 4.19% from 4.14%, respectively.

Since the beginning of the year, the Greek State has raised approximately 3.5 billion euros from the markets.

The total loan program for this year has been calculated to reach approximately 7 billion euros.

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