The Greek government has successfully launched a new 10-year bond, raising 4 billion euros, exceeding the initial target of 2.5-3 billion euros. This amount represents half of Greece‘s annual borrowing goal set by the Public Debt Management Agency (PDMA).
The bond’s yield was set at approximately 3.6%, equivalent to a spread of 102 basis points over the mid-swap rate.
Investor demand for the 10-year bond was overwhelming, with total bids surpassing 40 billion euros. Within just an hour of the order book opening, offers had already exceeded 33 billion euros, reflecting strong market confidence in Greece’s sovereign debt.
Athens mandated BofA Securities, Deutsche Bank, Goldman Sachs, Morgan Stanley, National Bank of Greece, and Société Générale to manage the issuance of the 10-year bond.
In light of the sale, the PDMA announced the cancellation of a bond auction originally scheduled for January 15, 2025, further underscoring the strategic importance of this issuance.
Today’s robust demand and favorable pricing indicate Greece’s in ongoing efforts to manage its public debt effectively and attract global investors.
Greece plans to raise approximately 8 billion euros from international markets in 2025, as outlined in the Public Debt Management Agency’s (PDMA) recently published program.
The country’s total financing needs for the year are estimated at 15.28 billion euros. These will be met through a combination of Recovery and Resilience Facility (RRF) loans, proceeds from privatizations, and a reduction in the government’s cash reserves.
The strategy reflects Greece’s ongoing efforts to balance market borrowing with alternative funding sources, ensuring fiscal stability while maintaining a steady presence in international markets.
