The decision of the government, the financial staff and the ODDICH to enter the bond market with new 30-year bond issue.
The process began with initial guidance for the interest rate at 175 basis points above the mid swap, or 4.25%. More than 33 billion bids were ultimately collected while the yield fell to 4.15% (165 basis points above mid swap).
Early repayment
The restructuring of the Greek debt continues unabated with the decision of early repayment by Greece this year of up to 5 billion euros from the country’s bailout program (Greek Loan Facility – GLFs) ahead of schedule. The move will lead to benefit of up to 40 million euros in terms of interest.
With the new move, an attempt was made to take advantage of the price stability prevailing in the markets before the European elections and it is the largest issuance in terms of duration since the recovery of the investment grade.
The current 30-year bond that is on the market has a maturity date of January 24, 2052 and its current yield is 3.9%, with a coupon of 1.875%. The original version 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.
