There is a high demand for the issuance of the new 30-year bond. Offers exceed €33 billion, with the interest rate falling to 4.2% from 4.3% initially.
The process began with initial guidance for the interest rate at 175 basis points above the mid swap, or 4.25%. Bids of over 28 billion were quickly assembled while the yield fell to 4.2% (170 basis points above mid swaps). A little later the demand was over 32 billion euros, while at the close of the book it had exceeded 33 billion euros. The final interest rate was set at 165 basis points above the mid swap, i.e. close to 4.2%, with the Greek State borrowing 3 billion euros.
The entire process of the syndicated issue has been undertaken by BNP Paribas, BofA Securities, Deutsche Bank, Goldman Sachs Bank Europe, JP Morgan and Piraeus Bank.
The advent of the investment tier allows the country to increase the duration of its obligations and thus the ODDIX took the relevant decision.
The restructuring
At the same time, Greek debt restructuring continues unabated with Greece’s decision this year to repay up to 5 billion euros of its transnational loan memorandums (GLF) ahead of schedule.
The current 30-year bond on the market matures on January 24, 2052, and its current yield is 3.9%, with a coupon of 1.875%. The initial issue was 24/3/2021 and the Greek State had drawn 2.5 billion euros from the 25.8 billion euros that was the total amount of the offers. Then on 8/9/2021 there was a reissue for €1 billion with total offers at €9.6 billion.
It is worth recalling that in the spring of 2022, 2.645 billion euros were returned to the partners, while in the same year the country’s obligations to the International Monetary Fund were zeroed out (1.86 billion euros were paid, which would normally be paid at the beginning of 2024).
Eurozone first memorandum loans amount to €52.9 billion with repayment periods from 2020 to 2040 and at 3-month Euribor + 0.5%, which makes them expensive as the 3-month Euribor is 3.94 %.
From this year, the servicing of EFSF (European Financial Stability Fund) loans of 141.8 billion euros with repayment in 2056 began, while from 2034 an additional 86 billion euros are added from the ESM until 2060.
