Greece sells 10-yr bond at historically low rate

Greece’s Finance Minister Christos Staikouras has expressed his satisfaction with the results from the re-issuance of a 10-year bond, as the cost of borrowing for the Greek government dropped to a historic low, while at the same time there was a rise in offers, far exceeding the government target.

Based on the data available so far that has been confirmed by Staikouras, the interest rate was set at around 1.2 percent, while the total bids reached 18 billion euros, with the Public Debt Management Agency (PDMA)  having set as a goal of raising 2.5 billion euros.

The minister stressed that the results show that the international investment community has confidence in the Greek economy, adding that the demand came mainly from foreign portfolios and institutional investors.

Barclays, Citi, IMI-Intesa Sanpaolo, Morgan Stanley, Nomura and Societe Generale acted as joint lead managers for the bond sale.

Staikouras: Greece borrows money at lowest ever rate

In an announcement, Staikouras underlined that: "Today, Greece recorded another significant success in the markets. For the third time since the outbreak of the coronavirus pandemic, the international investment community has reaffirmed its confidence in the Greek economy.

The country borrowed, at the lowest cost ever achieved in Greek government bond issues. Specifically, through the issuance of a 10-year bond, it raised 2.5 billion euros, with an interest rate of about 1.2 percent. The lowest interest rate over time, regardless of the duration of the issue. Also very important is the high demand and good quality of today's version. It was covered, in its vast majority, by foreign portfolios and institutional investors. For these reasons, I warmly congratulate PDMA for its methodical and serious work.

All of the above is strong practical evidence that the markets recognize the government's coherent economic plan and its effective implementation to address the adverse economic and social consequences of the pandemic.

And they applaud the holistic strategy it is pursuing for the fastest possible reorganization of the economy, so that the country can achieve strong, sustainable and socially just development. This is the great challenge we face.

We are aware that the difficulties are many and great, but it is up to us to overcome them. And we will overcome them, with faith in our strengths, with method and hard work".