The government wants to demonstrate its market access and build trust with regular issues.
(Photo: AFP)
Athens The conditions for debtor Greece are difficult: the war in Ukraine and the fear of an imminent gas supply freeze are unsettling market participants. Inflation and interest rate hikes put bond prices under pressure. The yield on the ten-year Greek bond, which was still yielding 0.6 percent last summer, rose above the three percent mark for the first time in three years.
Nevertheless, Athens tapped into the capital market this week. The state debt agency PDMA commissioned six banks to reissue a seven-year bond that had already been issued in April 2020. The country raised 1.5 billion euros with the papers, the coupon is 2.4 percent according to the Ministry of Finance. The issue was more than three times oversubscribed at 4.8 billion euros.
Two years ago, the country borrowed two billion euros with the original bond at a coupon of two percent. The remaining term of the newly issued paper is five years.
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