Greece to issue new five-year bond ‘in near future’

A Greek national flag flutters atop the parliament building in Athens
A Greek national flag flutters atop the parliament building in Athens, Greece, January 28, 2019. REUTERS/Alkis Konstantinidis

January 28, 2019

ATHENS (Reuters) – Greece is preparing to issue a new five-year bond in its first attempt to tap financial markets since it emerged from an international bailout program last August.

The bond issue will be launched “in the near future, subject to market conditions”, authorities said in a bourse filing, without providing further information on the timing or the amount sought.

BofA Merrill Lynch, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley and SG CIB have been picked as joint lead managers for the transaction.

The yield on 10-year Greek debt was down 1.5 basis points at 4.07 percent, its lowest since late September last year.

It dropped to a four-month low after the country’s parliament approved a deal last week that changes the name of neighboring Macedonia, ending a 28-year row.

Reuters reported last week that the country planned a five-year syndicated issue once the vote on Macedonia’s name was out of the way.

Greece, which emerged in August from its third international bailout since 2010, has tested market appetite under the watch of its international lenders in recent years. It sold 3 billion euros of seven-year bonds nearly a year ago.

Now, it wants to return to bond markets as a regular borrower.

(Reporting by Lefteris Papadimas; Writing by Renee Maltezou)

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