NEWS

Greece extends deadline for bond buyback until Tuesday

Greece has extended until noon on Tuesday the deadline for bondholders to take part in the buyback without revealing further details about the rate of participation so far.

The deadline had expired on Friday evening but the Public Debt Management Agency (PDMA) said in a statement on Monday morning that the new deadline would now be noon (London time) on December 11.

The PDMA added that the changing of the deadline would not allow investors who have already submitted their bonds for the buyback to withdraw from the process.

“We have decided to extend the Invitation to offer designated securities for exchange to 11 December 2012,” said Stelios Papodopoulos, the head of PDMA.

“Holders that have not tendered so far can still take advantage of the liquidity opportunity offered by the Invitation. Investors should bear in mind that even if Greece accepts all bonds tendered in the Invitation, it will continue to engage with its official sector creditors in considering further steps to put its debt on a sustainable path, he added.

"Future measures may not involve an opportunity to exit investments in designated securities at the levels offered for this buy back.”

The PDMA said that the settlement date for any investors taking part in the buyback would be Tuesday, December 18.

Greece has set a price range of between 30.2 and 40.1 percent of the principal amount for any bonds submitted by investors.

Despite the fact that Finance Ministry sources said on Saturday the target of collecting about 30 billion euros’ worth of offers for the buyback had been achieved, an extension to the deadline could allow more investors to come forward.

It is thought that hedge funds offered about 15 to 16 billion euros of Greek paper by the Friday deadline, while local banks will contribute up to 16 billion euros.

This would allow Greece to spend about 10 billion euros to buy back 30 billion euros’ worth of bonds, reducing its debt by 20 billion.

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