Five-year bonds issued by the Greek state on Wednesday attracted 2.5 billion euros from the market. During the formation of the order book for the issue, there was a very high demand, the volume of proposals approached 16 billion euros.
With the syndicated issue, the Public Debt Management Agency has covered the majority of this year’s loan program, which is expected to total €7.0 billion.
After the release on Wednesday, the Greek state has already borrowed 6.0 billion euros for 2023. The interest rate is 90 basis points higher than the average swap, or about 3.92%, while the original PDMA forecast was five basis points higher at 3.97%.
The new bond matures on June 15, 2028. The amount raised 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 traded at a yield of 3.75%, from 3.62% a day earlier, while the yield of the Greek ten-year bond rose to 4.19% from 4.14%, respectively.
Since the beginning of the year, the Greek state has attracted about 3.5 billion euros in the markets. According to calculations, the total lending program for this year will be about 7 billion euros.
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