Greece Plans Return to Markets With Five-Year Bond



Greece’s debt agency announced the country’s return to the bond markets on Monday, with a five-year syndicated issue of the financial product.

The bond issue will be launched “in the near future, subject to market conditions”, authorities said in a bourse filing. There was no further information provided on the timing or the amount of bonds sought.

The state aims to raise 2 billion euros from the issue, which represents Greece’s first foray into the market in 11 months.

The issue will be managed by Goldman Sachs, JP Morgan, Morgan Stanley, Merrill Lynch, HSBC and Societe General.

Potential yields on the new bonds are estimated to be between 3.5 and 3.6 percent.

Meanwhile, costs for borrowing in Greece for a period of ten years dropped to a four-month low on Monday. The yield on 10-year Greek debt was down 1.5 basis points at 4.07 percent, its lowest since late September of last year.

According to Reuters, this promising financial development is a result of last week’s parliamentary approval of the Prespa deal changing the name of neighboring country FYROM, which ends a time of political uncertainty.

Putting a slight damper on the announcement, European Commission Vice President Valdis Dombrovskis warned on Sunday of the dangers Greece may encounter in their return to the markets.

“The tendency is clear that Greece is returning to the markets,” he stated in a press release. However, earning returns after being excluded from the markets for nine years “is a very delicate task” which does not leave much room for either “maneuvers” or “mistakes.”