BUSINESS

Greece draws 2.5 bln euros from 10-year bond issue

TAGS: Markets, Finance

Greece announced the drawing of 2.5 billion euros, with a rate of 3.90 percent, from its 10-year bond issue on Tuesday, its first such foray in money markets since its emergence from the bailout programs last summer.

The country's Public Debt Management Agency confirmed that the bond that matures on March 12, 2029, attracted bids adding up to over 11.8 billion euros, which led to the decline of the interest rate from 4.125 percent, according to the original guidance, to 3.90 percent.

"The country tapped the markets on better terms and the bids reached a remarkable level," Greek Prime Minister Alexis Tsipras commented in parliament.

The previous time Greece had issued a 10-year bond was in March 2010, at a rate of 6.25 percent.

The banks that operated as joint lead managers for the issue were BNP Paribas, Citi, Credit Suisse, Goldman Sachs, HSBC and JP Morgan.

Despite last Friday's upgrading by Moody's by two notches, Greece's credit rating remains three to four notches below investment grade according to Moody's, Fitch and Standard & Poor's.

[Xinhua]

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