Tuesday September 23, 2014 Search
Weather | Athens
33o C
20o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Banks told to proceed with bond

 Government expects to draw up to 3 billion euros from the market at an interest rate of 3.2 to 3.5 percent

By Sotiris Nikas

Three months after Greece’s successful return to the international market, the Finance Ministry is testing investors’ intentions for a second time with the issue of three-year bonds.

The ministry announced on Wednesday that international banks have been mandated to manage the euro-denominated issue, while “the transaction will be launched and a price set in the near future, depending on market conditions.”

The government stating its decision in spite of the unrest observed in the markets on Wednesday due to a Portuguese bank missing a short-term debt repayment deadline, illustrating that Greece is no longer as sensitive as it was to such external events.

Sources say that the book will open on Thursday morning and close late in the evening or on Friday morning at the latest. The aim of the Public Debt Management Agency (PDMA) is to draw between 2 and 2.5 billion euros, but bids permitting, this could climb to 3 billion euros.

There were strong indications on Wednesday that investors would cover the amount sought. Given the current market conditions, the interest rate of the new bonds will likely range between 3.2 and 3.5 percent.

The ministry is keeping a low profile regarding the new issue, with officials stressing this is a very different case to that of the five-year bonds issued in April. The investing public that is interested in three-year paper is not the same as that for five-year bonds, so offers this time are not expected to reach up to 20 billion euros.

That would by no means deem the issue a failure. After all there are two main reasons for Greece’s new turn to the markets: to stay in touch with investors following the success of April’s issue and to further normalize the Greek yield curve, as there is no three-year bond in the local market. The next step will be for Greece to issue a seven-year bond, which is also missing.

There is also the practical reason of safeguarding the state’s liquidity in view of its August obligations, which add up to 6.7 billion euros.

ekathimerini.com , Wednesday Jul 9, 2014 (22:45)  
Troika visit as scheduled, ministry says
Greek yields hit one-month high as Samaras looks to exit bailout
Construction material costs for new residential buildings decrease
German bond gains push 10-Year yield below 1% on stimulus bets
Boutaris shortlisted for world mayor prize
Thessaloniki Mayor Yiannis Boutaris is among 26 mayors shortlisted for the World Mayor Prize 2014 bestowed by the independent City Mayors Foundation. The foundation awards the prize every tw...
Supreme Court postpones decision on Finance Ministry cleaning staff
The Supreme Court on Tuesday postponed the hearing of an appeal by the Finance Ministry with regard to a First Instance Court instructing the ministry to rehire a group of 393 cleaners place...
Inside News
SOCCER
PAOK joins Olympiakos on top after win at Agrinio
Olympiakos spent just two nights alone on top of the Super League, as on Monday evening PAOK joined the champions on 10 points through its 1-0 victory at Panetolikos. The Thessaloniki giant ...
SOCCER
Reds beat Veria to claim league lead
Olympiakos thumped hitherto Super League leader Veria 3-0 on Saturday to go alone on top of the table for the first time after four rounds of games. Four days after putting three past Atleti...
Inside Sports
COMMENTARY
A painful curse
It was a curse and a painful one at that. It was a brutal act that brings shame on the person who committed it, on the party which he represents, on the Parliament, on Greece and on everythi...
EDITORIAL
Europe’s choice
Tuesday’s meeting between Greek Prime Minister Antonis Samaras and German Chancellor Angela Merkel in Berlin is of crucial importance. It’s hard to deny that Greece has come a long way. The ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Troika visit as scheduled, ministry says
2. Greek yields hit one-month high as Samaras looks to exit bailout
3. Boutaris shortlisted for world mayor prize
4. Construction material costs for new residential buildings decrease
5. Supreme Court postpones decision on Finance Ministry cleaning staff
6. German bond gains push 10-Year yield below 1% on stimulus bets
more news
Today
This Week
1. Trolley bus, metro services to be disrupted Tuesday, Wednesday
2. Venizelos meets American Jewish officials in New York
3. German bond gains push 10-Year yield below 1% on stimulus bets
4. Supreme Court postpones decision on Finance Ministry cleaning staff
5. Construction material costs for new residential buildings decrease
6. Boutaris shortlisted for world mayor prize
Today
This Week
1. Greece at bottom of social justice scale among EU28
2. ‘Greece can meet its needs on its own’
3. Central Athens traffic restrictions back in force on Monday
4. Record sum of new debts to the state in August
5. Lost in the fog
6. Alexander the Great's tomb not at Amphipolis, says Culture Minister
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.