Greece seeks to raise 2.5 billion euros with new 10-year bond issue

Greece on Tuesday announced the issuance of a 10-year bond seeking to raise around 2.5 billion euros.

The Public Debt Management Aurhority mandated Barclays, Citi, Deutsche Bank, Morgan Stanley, Nomura and Eurobank to issue a syndicated bond, a few days after the Greek state completed a private placement worth 2.0 billion euros with Piraeus Bank with the reopening of a 30-year bond which was not included in this year’s schedule. The Greek government’s borrowing programme envisages draining 12 billion euros from capital markets. Analysts expect the new 10-year bond yield to range between 0.7 pct and 0.8 pct.

In the domestic electronic secondary bond market, the 10-year benchmark bond yielded 0.68 pct, the five-year bond yield eased to 0.06 pct from 0.08 pct on Monday and the 15-year bond yield eased to 0.959 pct from 0.97 pct. The yield spread between the 10-year Greek and German benchmark bonds was 1.21 pct with the German Bund yielding -0.53 pct. Turnover was 66 million euros of which 42 million were buy orders.