Friday September 19, 2014 Search
Weather | Athens
27o C
19o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Athens to tap the bond market on Wednesday

 Finance Ministry will likely issue a three-year bond, hoping for an interest rate that will not exceed 3 pct

By Sotiris Nikas

Barring any unforeseen circumstances, Greece will go ahead with a new bond issue on Wednesday to ensure the state has the necessary cash available to fulfill its August obligations of 6.7 billion euros while also normalizing the country’s image in the bond market.

Sources say that the Finance Ministry is most likely to issue three-year bonds – which do not currently exist in the country’s bond market – and to borrow an amount of between 2.5 and 3 billion euros.

Market analysts say that if Greece proceeds with such a move it should secure an interest rate that will not exceed 3 percent, and possibly even smaller. This would be a particularly favorable result, which would push the rate of the treasury bills lower and reduce budget spending on interest rate payments.

Ministry officials appear firm that Wednesday is the best day for the book-building process to start so that it can be concluded tomorrow. There will likely be six investment firms running the process, including some of the following: Bank of America Merrill Lynch, Deutsche Bank, Goldman Sachs, Citi, JPMorgan, Morgan Stanley, Nomura, HSBC, UBS and BNP Paribas.

Wednesday appears to be ideal for the start of the issue process for several reasons: Conditions in the money markets remain good thanks to the maintenance of interest rates at low levels, as Tuesday’s treasury bills sale also showed; Monday’s Eurogroup decision for the disbursement of the 1-billion-euros sub-tranche confirmed that Greece has returned to the path of reforms; and OTE telecom borrowed 700 million euros through a six-year bond with a coupon of 3.50 percent on Monday, while Greece had secured a rate of 4.75 percent for its five-year bonds in April.

Crucially, the intermediary inspection of the country’s creditors will start on Thursday, as Finance Minister Gikas Hardouvelis holds his first meeting with the heads of the creditors’ missions to Athens, so the issue will be over and done with before any negative developments in the talks might emerge.

ekathimerini.com , Tuesday Jul 8, 2014 (23:15)  
Cyprus civil servants´ strike called off
Bank of Cyprus to sell UK loan portfolio
Elliniko investors eye Cyprus project warily
Auctions lead to surprise stock growth
Minister calls on Tsipras to clarify position on public sector checks
Administrative Reform Minister Kyriakos Mitsotakis called on SYRIZA leader Alexis Tsipras to publicly state his position on the government’s efforts to review public sector contracts and roo...
SYRIZA demands ND reaction to new claims of Baltakos contact with Golden Dawn
SYRIZA has called on New Democracy to respond to a newspaper report that claimed the former cabinet secretary Panayiotis Baltakos advised Golden Dawn MPs on how they should vote. Leftist MP ...
Inside News
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
SOCCER
Financial crisis forces Greek second division postponement
Greece's second soccer division Football League announced on Wednesday the postponement of the start of the season due to financial difficulties being faced by most clubs. "The board of dire...
Inside Sports
COMMENTARY
High stakes after the Scottish vote
We will soon know whether the Scots voted for their country’s independence or whether they will remain citizens of the “United Kingdom of Great Britain and Northern Ireland.” What was alread...
EDITORIAL
Breathing room
Even Greece’s biggest critics find it hard to deny that the debt-hit country has achieved an unprecedented fiscal turnaround within a very short period of time. Sure, progress in promoting t...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Cyprus civil servants´ strike called off
2. Bank of Cyprus to sell UK loan portfolio
3. Elliniko investors eye Cyprus project warily
4. Auctions lead to surprise stock growth
5. Minister calls on Tsipras to clarify position on public sector checks
6. SYRIZA demands ND reaction to new claims of Baltakos contact with Golden Dawn
more news
Today
This Week
1. Dozens of arrests at march to mark anniversary of Fyssas murder
2. EIB signs deals with Greece for 815-mln investment in infrastructure projects
3. Syntagma metro station to close for Fyssas tribute concert
4. ECB eyes banks’ capital quality as target for supervisory power
5. Samaras heads to Azerbaijan for two-day visit
6. Homeless man falls to death from shelter in central Athens
Today
This Week
1. Greece on standby
2. Greece at bottom of social justice scale among EU28
3. Central Athens traffic restrictions back in force on Monday
4. Lost in the fog
5. Democracy under Pressure | Live Streaming
6. SYRIZA spokesman suggests gov't sought to stop NERIT airing Tsipras speech live
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.