NBG swaps Greek govt bonds with new 30-year bond issue


Greece swapped state debt held by National Bank of Greece and maturing in 2025 with a new 30-year government bond at a reduced interest rate, Finance Minister Christos Staikouras announced on Tuesday.

“The Greek state has bought back from National Bank three Greek government bonds (GGB) with a total nominal value of about 3.3 billion euros and a market value of about 3.8 billion euros, with a fixed nominal interest rate of 3.5 percent and an average natural maturity in 5.4 years, issued in March 2019 through private placement,” Staikouras said in an e-mailed press statement.

“This buyback was performed through the issue of a new GGB with a 30-year maturity period, of equal nominal value and market value, and a nominal interest rate of 3.25 percent.”

The minister’s announcement added that the transaction is fiscally neutral for the state and significantly reduces the state’s refinancing risk by replacing bonds whose average maturity period is 5.5 years with bonds maturing in 2050.

It also noted that “this is a benchmark issue assisting the improved repricing of the Greek yield curve for all maturities below 30 years.”