The Public Debt Management Agency (PDMA) – responsible for the undertaking of the financing of the Greek State and the servicing of the public debt, is moving forward with the issuance of a 10-year bond, instructing Alpha Bank, Barclays, Citi, Commerzbank, Nomura, and Societe Generale (SocGen) to prepare for the auction.
In a recent announcement, the Hellenic Republic, with a credit rating of Ba1/BBB-/BBB-/BBBL (Moody’s stb./S&P stb./Fitch stb./DBRS stb.), has designated Alpha Bank, Barclays, Citi, Commerzbank, Nomura, and Societe Generale as Lead Managers for a new 10-year bond set to mature on June 15, 2034.
The joint transaction is scheduled to commence shortly, contingent upon market conditions.
For the 2024 program, the Greek government’s borrowing needs amount to €18.9 billion. According to the “Strategic Financing Plan” disclosed by PDMA, €10 billion will be covered through bond issuances, €4.1 billion will come from other sources such as the European Investment Bank, the NextGenerationEU program, etc., €1.6 billion will be generated from the sale of stocks and other public assets, and €3.6 billion will be sourced from the government’s available liquid funds.
Market analysts underscore a clear shift among investors towards Southern European bonds, with Greece emerging as one of the beneficiaries of this trend, reflected in the yields of the Greek 10-year bond, currently standing at 3.28%, with the spread hovering around 100 basis points. In comparison, the equivalent Italian spread exceeds 150 basis points.
