The Public Debt Management Agency has decided the issuance of a 15-year bond. According to an announcement by the Greek Government, BNP Paribas, Barclays, BofA, Goldman Sachs, HSBC and JP Morgan were instructed to take over the maturing version in 2035.
The joint venture will proceed in the near future, depending on the conditions on the international markets, as sources report.
It is noteworthy that Finance Minister Christos Staikouras, speaking to SKAI TV earlier today, confirmed this development, saying that “the procedures were in place”.
The question he was asked was whether the Greek Government would be issuing today a 15-year bond.
The market was expecting that, in the event that Fitch upgraded its credit rating, as it did on Friday midnight, the next immediate move would be the issuance of a 15-year bond.
According to market players, the yield on a 15-year bond in today’s circumstances could be around or even below 2%.
It is noted that, according to PDMA’s plans, the Treasury bills are expected to drop to € 8.2 billion from € 12.6 billion where they stood at the end of 2019. The PDMA 2020 financing strategy will focus on a steady presence in the international securities markets coupled with debt reduction, while maintaining the current level of cash holdings.
PDMA is elaborating on 2 key financing scenarios for 2020, depending on the amount of early repayments. The first scenario focuses on the reduction of interest rates by issuing additional bonds. The second one considers the possibility of additional possible debt prepayments to public sector organizations and to the private sector. In both scenarios, however, government debt is expected to fall; by € 3 billion in the first scenario, or by € 2 billion in the second one.
Depending on which of the two scenarios ends up being realized, bond issuances will range between 4-8 billion euros. It is worth noting that the needs of the country are covered for this year anyway. /ibna