By Gerasimos Chionis

 

 

Greece launched the book-building process for a new 10-year syndicated bond issue, maturing June 2034, with bids exceeding 35 billion euros, beyond all expectations.

 

The Public Debt Management Agency (PDMA) raised 4 billion euros, which corresponds to 40% of this year's program (a total of 10 billion euros).

 

Based on these data, the coverage ratio reached almost an impressive 10x (8.75x), with the interest rate close to 3.45% (80 basis points from the mid swap), i.e. at lower levels than the original estimate of 3.5% (85 basis points from mid swap).

 

Alpha Bank, Barclays, Citi, Commerzbank, Nomura and Societe Generale act as coordinators of the issue.

 

It is Greece's debut on the market after the acquisition of the investment grade.

 

PDMA plans to issue bonds up to 10 billion euros in 2024. The Greek state's borrowing needs for 2024 reach 18.999 billion euros. The state's borrowing needs include 5.463 billion euros for refinancing maturing bonds; 4.8 billion euros for the repayment of interest and other individual liabilities; 12 billion euros for the definitive redemption of promissory notes; and 3.589 billion euros for liquidity needs at specific time periods in 2024.

 

In its overview, PDMA has said its funding strategy for 2024 will focus on the continuous presence in international debt markets, accompanied by the reduction in the level of public debt, proactive management of the debt portfolio and the preservation of a significant cash buffer.

 

Finance Minister Kostis Hatzidakis commented: "Today we tapped the markets to borrow 4 billion euros and investors offered us 35 billion!

 

Greece achieved some important records: After 2010, it was the highest amount raised. The spread is expected to be the lowest. The interest rate is expected to close around 3.5%.

 

This certifies the steady upward trend of the Greek economy. The restoration of confidence, the acquisition of investment grade and the prudent fiscal policy to which we are committed, ensure lower borrowing costs and corresponding benefits for Greek taxpayers.