In a new exit on markets Greece is moving forward today – except for the unexpected – through it reissue of the 7-year bond of April 2020.
In this way, the Greek State wants to use the positive power from the upgrade of Standard & Poor ‘s, last Friday but also from the DBRS that preceded, as well as from the repayment of the IMF loans, according to Kathimerini.
From the issue, Greece intends to raise between 1 and 2 billion euros.
The initial issue of this title was made in April 2020 and the country raised 2 billion euros at a cost of 2%. The current yield of the 7-year is at the level of 2.4% (s.s .: yesterday there was an upward trend after the publication of the news for the reissue), so it is estimated that the final borrowing cost will be in the range of 2.5% .
As Greece does not face any liquidity problems at this stage, the solution will not be chosen to sell much of the issue to hedge funds just to raise more funds.
For the re-circulation of the 7-year bond, Greece gave mandates to six investment banks. Co-managers of the issue will be BNP Paribas, BofA Securities, Citi, Deutsche Bank, Goldman Sachs and JP Morgan.
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