Strong demand on Tues. by investors for first bond issue after election of new Greek govt

Tuesday, 16 July 2019 17:00
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Strong demand by long-term institutional investors was recorded in the first hours after the opening of an offer book for the issuance of a new seven-year bond by the Greek state on Tuesday, the first foray into the markets by the new Mitsotakis government.

According to reports, offers exceeded 12.5 billion euros for 2.5 billion euros that the Greek state sought to drain from the markets.

High demand pushed the yield to 1.9 percent, down from 2.1 percent first cited with the opening of the offer book.

The issue comes after the Greek state issued a five- and 10-year bond, raising five billion euros, with Tuesday's issue being the third in 2019.

In a statement issued by the finance ministry shortly before 5 p.m. (local time), new Finance Ministry Christos Staikouras said a primary condition for the Greek economy's return to normalcy is systematic, high-quality and low-cost borrowing by the country from international markets.

"Today, the 7-year bond issue is judged as particularly successful, as it moves in this direction. We're continuing, step by step, with a plan, maturity and determination," Staikouras said in a statement.

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