Greece opens books for new 15-year bond

Source: Xinhua| 2020-01-28 21:35:57|Editor: xuxin
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ATHENS, Jan. 28 (Xinhua) -- Greece launched on Tuesday a new 15-year bond issue, the first of such maturity after the country's emergence from an eight-year bailout period.

Books are expected to close later on Tuesday, with six foreign banks acting as joint lead managers in the country's first market foray for 2020.

The new bond has a maturity date of Feb. 4, 2035, Greece's Public Debt Management Agency (PDMA) announced in a bourse filing. The initial price thoughts (IPTs) announced are for an interest rate just below 2 percent, around 1.97 percent.

On Monday the benchmark 10-year bond yield dropped to a historic low of 1.16 percentage points, though this is not seen to deter profit-minded investors, according to Georgios Argeitis, a National and Kapodistrian University of Athens Economics Professor.

"Despite the decline in yields, investors will choose Greek government bonds because those of other countries still have far lower yields," he told Xinhua.

In 2019, its first full year after its exit from the bailout process in August 2018, Greece tapped the bond markets four times, drawing a total of almost 10 billion euros (11 billion U.S. dollars).

This is the first time Greece has issued a bond maturing after 2032, until when the country's creditors have confirmed the national debt will be sustainable. This year PDMA has announced it aims to draw between 4 and 8 billion euros.

PDMA has also declared its intention to reduce its treasury bills stock this year by shifting its focus onto bonds. On Wednesday it will auction 26-week T-bills to the value of 375 million euros, maturing on July 31. (1 euro = 1.1 U.S. dollars)

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