Greece is set to reissue its government bonds with a fixed interest rate of 3.375%, maturing on June 15, 2034, and identified by ISIN GR0124040743, in an auction held on Wednesday, Nov. 20.
According to the Public Debt Management Agency (PDMA), the reissue aims to meet investor demand while facilitating the functionality of the secondary bond market. The total amount to be auctioned is up to 250 million euros, with the settlement date set for Wednesday, Nov. 27, 2024.
Participating eligibility in the auction is granted exclusively to primary dealers (PDs), allowing them to submit up to five competitive bids each via HDAT, the electronic trading platform for Greek government securities.
The submission deadline time is Wednesday 12:00 pm, while accepted bids will be satisfied at the cut-off price determined by the last accepted offer.
It is worth noting that only competitive bids for the Greek government bonds will be considered, and the auction results will contribute to the evaluation of the participating PDs. No commission will be provided for the bonds, as clarified in the official announcement.
Meanwhile, preparations are underway for the early repayment of bilateral loans under the Greek Loan Facility (GLF). It is anticipated that this repayment, set to reduce Greece’s public debt, will be completed by December 15, 2024.
It involves a triple tranche totaling approximately 8 billion euros, originally borrowed at the onset of Greece’s first bailout directly from Eurozone countries. The PDMA anticipates that all necessary approvals for this repayment will be secured by mid-December.
At the same time, Greece plans to utilize a 15.7 billion euros cash buffer held with the European Stability Mechanism (ESM).
This strategy aims to save an estimated 300 million euros annually in interest costs through 2028, while further improving the overall profile of Greece’s public debt.
