The response to the new 30-year bond with which the Greek State is entering the markets to raise 2-2.5 billion euros is great. In particular, offers have exceeded 32 billion euros, while the initial interest rate fell by 5 basis points to 170 basis points above the mid swap, i.e. 4.2%.
This is the second largest exit to the markets this year, after the issuance of the new 10-year note in January. ODDIX has appointed BNP Paribas, BofA, Deutsche Bank, Goldman Sachs Bank Europe SE, JP Morgan and Piraeus as Joint Lead Managers for a new security maturing on June 15, 2054.
It is recalled that on April 17, ODDIX proceeded to reissue Greek bonds maturing on February 4, 2035, raising 200 million euros with a yield of 3.61%.
Already, the 2024 loan program is 52% covered, as approximately 5.2 billion euros have been drawn out of the 10 billion euros that is the target for the year. However, the exit to the markets takes place against the background of the upgrade of the outlook of the credit rating of Greece by S&P and also the final data for 2023, which showed a primary surplus at 1.9% of GDP, i.e. significantly higher than the target of 1 ,1%.
This is, moreover, a move that takes place in anticipation of the reduction of interest rates by the ECB, which is expected to generate intense investment interest.
Among the positives that work in favor of Athens are also the country’s low financing needs and cash reserves of 35.2 billion euros.
After all, the movements of early repayment of loans continue, as Athens returns to normality. Yesterday, Reuters reported the plans of the Greek government to advance the early repayment of loans, amounting to 2.5 to 5 billion euros, until the end of 2024, to the countries of the Eurozone. Repayment is likely to take place in the second half of the year.
It is noted that a 30-year bond was also issued in March 2021, when offers exceeded 26 billion euros, with ODDIX raising 2.5 billion euros with an interest rate of 1.956% and a coupon of 1.875%.
Source: Moneyreview.gr
