Greece’s new foray to international markets was successful, as the interest rate on the newly issued 10-year bond was “locked in” at 3.90%, the lowest level since 2006. Indeed, the target of raising funds has also been exceeded, as from the initial target of 2 billion euros, the Greek government draws 2.5 billion euros.
The bids in the book, according to an announcement at the Athens Stock Exchange, amounted to 11.8 billion euros from 419 international investors, compared to the 290 investors who were bidding for the 5-year bond. The ten-year bond expires on 12 March 2029 and is governed by English law. The bid book was opened this morning and the first indications state that the bond yield would range between 3.9% and 4%. However, increased demand has led to a low rate.
Tsipras: It is a sign of hope and prospect
Speaking to the Greek Parliament, the Greek Prime Minister spoke of a crucial sign as Greece is turning over a new page and is coming out of the crisis. “But it is also a sign of hope and prospect that something can change, and things will get better,” said Al. Tsipras. He also addressed Kyriakos Mitsotakis, reminding him of the prediction that Greece will not be able to return to the markets. “This prediction was also another pathetic failure of yours”, he stressed.
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