Greece on Tuesday launched the book-building process for a new 10-year syndicated bond issue with bids exceeding 30 billion euros. The initial interest rate of the bond issue is around 3.46% (85 basis points above the mid swap).
Alpha Bank, Barclays, Citi, Commerzbank, Nomura and Societe Generale act as coordinators of the issue.
The 10-year Greek bond yield eased to 3.28% on the domestic electronic secondary bond market on Monday, from 3.34% on Friday, with the yield spread against the 10-year German Bund at 1.04%.
Greece aims to raise 3.5 billion euros.
It is Greece’s debut on the market after the acquisition of the investment grade. The Public Debt Management Agency (PDMA) plans to issue bonds up to 10 billion euros in 2024. The Greek state’s borrowing needs for 2024 reach 18.999 billion euros. The state’s borrowing needs include 5.463 billion euros for refinancing maturing bonds; 4.8 billion euros for the repayment of interest and other individual liabilities; 12 billion euros for the definitive redemption of promissory notes; and 3.589 billion euros for liquidity needs at specific time periods in 2024.
In its overview, PDMA has said its funding strategy for 2024 will focus on the continuous presence in international debt markets, accompanied by the reduction in the level of public debt, proactive management of the debt portfolio and the preservation of a significant cash buffer.
