Sources: Greece Set to Raise 4BN from 10Y Bond

The Greek state is set to raise €4 billion through the issuance of a new 10-year bond maturing in June 2034, sources on Tuesday confirmed.

The bidding book has closed with offers surpassing 35 billion euros, with Alpha Bank, Barclays, Citi, Commerzbank, Nomura, and Société Générale (SocGen) tasked with overseeing the issuance process. The new 10-year bond will mature on June 15, 2034.

The bid-to-cover ratio reached an impressive almost 10x (8.75x), with the yield settling around 3.45% (80 basis points from the mid-swap rate). This is lower than the initial estimate of 3.5% (85 basis points from the mid-swap rate).

This marks Greece’s first foray into the markets with the stamp of an investment-grade rating, which the country has regained from four different rating agencies – Fitch, Standard & Poor’s, Scope, and DBRS – since the second half of 2023. Moody’s is expected to follow suit in the upcoming scheduled evaluation on March 15.

The Hellenic Republic’s 2024 program aims to raise a total of 10 billion euros through bond markets. With today’s successful issuance of €4 billion, it has already covered 40% of its final target.

Market analysts highlight a clear shift in investor preference towards Southern European bonds, with Greece positioned among the beneficiaries of this trend.