The Public Debt Management Agency (PDMA), which is responsible for the undertaking of the financing of the Greek State and the servicing of the public debt, re-issued a 30-year bond on Wednesday, marking another milestone in Greece’s return to sovereign borrowing markets after 2019.
The initial interest rate has been set at around 4.3%, with BNP Paribas, BofA Securities, Deutsche Bank, Goldman Sachs Bank Europe, JP Morgan, and Piraeus Bank overseeing the entire joint issuance process.
The current 30-year bond, maturing on Jan. 24, 2052, offers a yield of 3.9% and a coupon rate of 1.875%. Initially issued on March 24, 2021, it raised 2.5 billion euros out of total bids reaching 25.8 billion euros. A reopening occurred on Sept. 8, 2021, raising one billion euros, with total bids reaching 9.6 billion euros .
Meanwhile, Greece’s ongoing debt restructuring includes an early repayment decision of up to five billion euros in previous bailout loans extended by the Eurozone.
This particular borrowing, dating from the first memorandum bailout, total 52.9 billion euros, with repayment terms from 2020 to 2040 and an interest rate of Euribor 3-month + 0.5%, posing a cost challenge due to the 3-month Euribor rate at 3.94%.
Servicing has also commenced this year for loans from the European Financial Stability Facility (EFSF), amounting to 141.8 billion euros to be repaid by 2056. An additional 86 billion euros from the European Stability Mechanism (ESM) will be added from 2034 to 2060.
