Greece withdrew 3 billion euros from issuing a new 30-year bond on Wednesday, underscoring strong demand for the issue that came after an unexpected upgrade of the country’s credit outlook to “Positive” by Standard & Poor’s last Friday.
The Public Debt Management Agency (PDMA) announced on Wednesday that the issue received offers of more than €33 billion, which led to a reduction in interest by 15 points from the original guidelines.
The interest rate on the coupon issue ended up much lower than initially expected, at around 4.15% instead of 4.30%. So Greece received a loan of the maximum amount it had registered for the issue.
BNP Paribas, Bank of America Corp., Deutsche Bank, Goldman Sachs Group, JPMorgan Chase & Co and Piraeus Bank ran the book for the new syndicated issue.
Minister of National Economy and Finance Kostis Hatzidakis said that “the issuance of a 30-year bond, with which PDMA took place today, is an important success for the country and another vote of investor confidence in what planned for the Greek economy. In a period of international geopolitical uncertainty, the Greek issue was 11 times oversubscribed as investor bids exceeded €33 billion, while the interest rate was set at a determines the rate of investment and is directly comparable to the corresponding interest rates of other countries in the world. euro area.”
He said that “today’s success reflects, among other things, the positive evaluations of the international community rating agencies, which are themselves based on a prudent fiscal policy, implemented by the Greek government and will continue to act regularly. “
The last time the Greek state borrowed through a 30-year bond issue was in 2021, and the last time it tapped the markets with a bond issue was in January, when it raised € 4 billion, while attracting applications worth € 35. billion.
In total, Greece aims to borrow €10 billion for the whole year.
