Greek Bonds: 3.5 billion raised by Public Debt Management Agency (P.D.M.A.)

The issue of the new 15-year bond of the Hellenic Republic was oversubscribed by 3.82 times, as the total offers amounted to 13.5 billion euros.

The Public Debt Management Agency (P.D.M.A.) raised €3.5 billion, with the final spread set at 125 basis points above the mid swap, i.e. close to 4.45%, from 130 basis points above the mid swap (3.2%) , i.e. close to 4.5%, which was the original rate of the issue.

The increased interest was registered despite the recent negative sentiment in the European bond markets, with yields rising significantly and the inversion of the curve deepening to multi-year highs. However, today there is a small drop in the cost of borrowing in the eurozone.

Of the €13.4 billion in offers, €11.6 billion is new cash capital, and €1.8 billion concerns the exchange of bonds maturing 2023 and 2024.

The two processes were run by BNP Paribas, BofA Securities, Deutsche Bank, Goldman Sachs Bank Europe SE, J.P. Morgan and National Bank.

Aggressive moves

It is noted that the financial staff has planned aggressive moves in debt management during the second half of the year and four bond reissues.

Despite the fact that this year’s borrowing target has already been met by raising around 7 billion euros, the cash cushion of more than 35 billion euros is to be bolstered by reissues, which may exceed 2 billion euros.

The PDMA has also scheduled auctions with reissues for July 19, September 20, October 18 and November 15 and aims to improve the functioning of the secondary market of Greek government bonds.

In the secondary bond market today, and more specifically in the Electronic Transaction System (HDAT) of the Bank of Greece, transactions of 226 million euros were recorded, of which 116 million euros related to purchase orders.