Staikouras welcomes Greece’s return to the bond market, raising 1.5 billion euros with the reissue of a seven-year bond — Greek City Times


Greek Finance Minister Christos Staikouras on Wednesday hailed the country’s successful return to capital markets with the reissue of a 7-year bond and noted it was another strong vote of confidence for the Greek economy.

“Our country, even in this liquid international environment, manages to evolve steadily as a classic issuer member of the euro zone, preserving its constant presence in international markets”, Staikouras mentioned.

He added that although the latest issuance showed an increase in the cost of borrowing, due to international conditions, it remained below 2019 levels.

Staikouras noted that the government has already hedged a significant portion of its bond issuance program for 2022, keeping the country’s cash inversions at safe levels and securing the necessary funds to continue supporting households and businesses. businesses hit by rising energy costs.

A bookbuilding process for the reissue of a 7-year bond attracted strong interest on Wednesday, with bids topping 5.8 billion euros with just half an hour remaining for the process to be completed, sources said. .

The same sources noted that the increase in interest contributed to revising the interest rate guidance downwards to mid swap +110 bps against mid swap +115 bps at the start of the book-building process.

In the meantime, a six-month treasury bill auction was successfully completed. The Greek state raised 812.5 million euros thanks to the auction at an interest rate of -0.14% (-0.20% during the previous auction).

The Greek state raised 1.5 billion euros in the market with the reissue of a seven-year bond that closed on Wednesday.

The sale attracted bids worth €4.8 billion, with an initial downward bias of mid swaps +110 bps versus mid swaps +115 bps at the start of the bookbuilding process, for a rate interest rate in the region of 2.51% versus 2.57%

The issue matures in April 2027 and was issued with a coupon of 2% and a yield of 2.103%.

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