Greece to Reissue 10-Year Bond on Wednesday

An auction will be held for the reissue of a Greek 10-year bond with a fixed interest rate of 3.375%, maturing on June 15, 2034, in dematerialized form (ISIN: GR0124040743), according to the Public Debt Management Agency (PDMA). The auction is scheduled for Wednesday.

The purpose of the re-issuance of these Greek government bonds is to meet investor demand while also facilitating the functioning of the secondary bond market.

The auctioned amount will be up to 250 million euros, with the settlement date set for Wednesday, Sept. 25, 2024 (T+5).

In today’s auction, only Primary Dealers (PDs) will be eligible to participate, submitting up to five competitive bids each through HDAT (the electronic secondary securities market).

These bids must be submitted by 12:00 PM Wednesday. Bids will be accepted up to the auctioned amount, based on the cut-off price, which is the price of the last accepted bid.

Only competitive bids will be considered, and the auction results will be factored into the evaluation of the PDs. No commission will be paid for the bonds issued in this auction.

The 2025 Plan

Greece plans to raise between 8 billion and 10 billion euros from debt markets in 2025 through a mix of short- and long-term bond issues to continue the early repayment of bailout loans, two government sources told Reuters today, outlining the Public Debt Management Agency’s (PDMA) strategy for the upcoming year.

Having regained its investment-grade status last year, Greece has made significant strides in improving its fiscal performance. The country’s borrowing costs have sharply decreased as it recovers from the financial crisis of 2009-2018.