The Greek state will strengthen its cash reserves with 2.5 billion euros following the successful completion of a 30-year bond issue on Wednesday, Finance Minister Christos Staikouras said.
Commenting on the bond issue, Staikouras said “the issue will significantly contribute to the further improvement of the sustainability of the public debt. It highlights and confirms, even more emphatically than previous issues, the confidence of the international investment community to the management, potential and outlook of the Greek economy. It is also an additional positive step which it is expected to work as a catalyst in future credit rating upgrades of the country.”
The Greek FinMin noted that the 30-year bond issue was notable for the significant demand it raised, the low cost of borrowing and its exceptional quality.
The book-building process for a Greek 30-year bond issue closed on Wednesday with bids submitted totaling 20 billion euros and the interest rate of the issue at 1.8 pct. The process opened with the initial guidance for the interest rate at MS plus 160 basis points, or around 2.0 pct.