Finance Minister Christos Staikouras spoke of a successful bond issue.
Greece's first post-election bond issue fetched 2.5 billion euros on Tuesday, securing a yield of 1.9 percent and a strong interest by long-term investors, according to the Greek national news agency AMNA.
The seven-year bond that Greece's Public Debt Management Agency (PDMA) issued with a guidance rate of 2.1 percent faced such a high demand by investors that the yield eventually dropped below two percent in this third market foray for Greece this year. It was more than five times oversubscribed. This new note has a maturity date of July 23, 2026.
"I would like to congratulate the Public Debt Management Agency and the Ministry of Finance on the issuance of a seven-year bond at a record low yield of 1.9 percent," wrote Prime Minister Kyriakos Mitsotakis on Twitter. "This is a vote of confidence in Greece's growth prospects," he added.
"A basic condition for the Greek economy to revert to normality is the systematic, quality and low-cost financing of the country by the international markets," commented Finance Minister Christos Staikouras in a statement.
"Today's seven-year bond issue is evaluated as particularly successful, as it heads in that direction. We continue, step by step, with a plan, with maturity and determination," added Staikouras.
The PDMA has intended to capitalize on the favorable market climate toward Greece less than 10 days after the July 7 election that brought the center-right New Democracy party into office.
Greece has already issued a new five-year and a new 10-year bond this year that fetched 5 billion euros between them, against a target for takings of 7 billion euros for the entire year by the PDMA for covering the country's obligations. Tuesday's additional funds mean that that target has already been exceeded.
Any additional revenues from bond issues could be used for buying back more expensive loans, thereby diminishing Greece's national debt and improving its sustainability.
Greece emerged from its third and final bailout program last August and is trying to establish itself back in the finance markets while repaying its dues to its creditors.