ΙΣΧΥΡΗ ΖΗΤΗΣΗ
- 30 Apr 2023
- economy
The procedure for the issuance of the five-year bond by ODDIX has been completed. and demand was strong as it exceeded €19.1 billion. The initial guidance given to investors for the rate was 95 basis points above mid swaps, or 3.97%, and was cut to 90 basis points above mid swaps, or 3.92%.
According to the contractor, the amount of the new 5-year bond issue will be 2.5 billion euros.
As Euro2day.gr wrote, the scene that has formed in the markets gathered several features of a "window of opportunity" for the second consecutive issuance of Greek government bonds for 2023. In addition to the attractiveness of the bonds in an environment of intense volatility in the stock markets, which works in favor of an edition now, the announcement of national elections in Greece removes up to four months from the annual frame of future editions.
The truth is, on the other hand, that the Public Debt Management Agency had the luxury of waiting until the last quarter of the year. Cash available at 18% of GDP and already covering 7 of the total 11 billion euros of the gross annual financing needs of 2023 give room to wait as long as necessary.
Additionally, with a single issue in early 2023 with the new ten-year bond, ODDIX has already covered 3.5 billion euros of the up to 7 billion euros it has announced it will raise this year from the markets. However, he chose to keep communication with the markets open, while the announcement of the imminent exit at a time parallel to the announcement of the date of the national elections can be considered rather coincidental. As the head of ODDICH D. Tsakonas repeated yesterday at the conference of the Economic Chamber, "all our moves are carefully pre-planned".
The scope of the issue will depend on the "appetite" of the markets. In the January edition, offers reached 21.9 billion euros and 3.5 billion were finally raised with a yield of 4.279 billion euros. The immediately preceding ten-year issue, in January 2021, yielded 1.75%, with offers exceeding €15 billion and the Greek government raising €3 billion.
