Greece offers government bond swap

The Greek Public Debt Management Agency (PDMA) on Monday urged holders of government bonds maturing in 2023, 2024 and 2025 to agree to a swap deal with new bonds maturing in 2027, 2033, 2037 and 2042.

The exchange deal covers government bonds with a par value of around 4 billion euros.

The agreement will allow the ECB to buy more Greek bonds through its PEPP program.

The Finance Ministry’s decision to offer a bond swap agreement to bondholders – holders of Greek government bonds arising from the PSI agreement – creates more opportunities for the European Central Bank to buy Greek bonds, the daily kathimerini notes.

The ECB has already purchased Greek bonds with a par value of 30 billion euros.

The aim of the proposal is to normalize the Greek bond yield curve and offer the market benchmark bonds that will be more liquid than the bonds issued to be exchanged, notes Reuters.

Offer expires at 17:00 CET on December 10th with an expected settlement date on December 17th.

Greece is offering to exchange issued bonds with maturities from 2023 to 2042, with new issues of 2% of bonds expiring in April 2027, 3.9% of bonds maturing in 2033, 4.0% of bonds in 2037 and 4. 2% bonds in 2042.

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