Without any delay, the Public Debt Management Organization (ODDIH) opened the bid book for reissue of the 7-year Greek bond.
It is recalled that this government debt securities was issued in April 2020 and then the ΟΔΔΗΧ had raised the amount of 2 billion euros.
The Ministry of Finance, wanting to take advantage of the positive momentum after the upgrade of Greece’s credit rating by the rating agency, Standard and Poor’s, with immediate moves decided to enter the markets, which is the second for 2022.
The initial guidance for the yield of the maturity bond in 2027 is at 115 basis points in relation to the mid-swap, formed approximately at 2.57%. With a yield of 2.42%, the goal is for the yield to be around 2.50% today and to raise an amount of about 1.5 billion euros.
Yesterday, it was announced that BNP Paribas, BofA Securities, Citi, Deutsche Bank, Goldman Sachs Bank Europe SE and JP Morgan would reissue the bond maturing on April 22, 2027, “in the near future, depending on market conditions”.
It is noted that this is the second exit of Athens in the markets since the beginning of the year. It was preceded by the auction of a new 10-year bond in January, which attracted bids of more than 15 billion euros. At that time, 3 billion euros had been raised at an interest rate of 1.84%.
In total, Athens aims to borrow about 12 billion euros this year and to issue its first green bond.
The news of the 7-year reissue caused pressures on Greek bond prices yesterday, with the 10-year yield falling above 3% to close at 2.99%, while the 5-year yield exceeded the 2% barrier.
According to JP Morgan estimates, this week European governments will hold bond auctions totaling around € 12 billion, with Belgium, Germany and Italy entering the markets.
It is recalled that JP Morgan may have closed the long positions it held in Greek bondsbut insists that their medium-term prospects are constructive.
“We believe that the market is imposing an excessive discount on the end of Greek government bond markets in the context of the quantitative easing in current valuations (even after the recent reduction in spreads),” analysts said in a recent analysis. He added that in their view, the market has also underestimated the relatively strong economic activity, the political environment and the financing conditions of Greece, compared to other countries in the region.
DZ Bank analysts also noted that the S&P upgrade may not have been reflected in bond prices, but the prospect of a return to investment is expected to be assessed by investors in the coming months.
DZ Bank expects that the Greek bonds will perform better than the Italian ones, even predicting that with the exit from the junk, the spread between the two 10-year years will disappear.
Money Review
Follow Skai.gr on Google News
and be the first to know all the news
