The first Greek bond for 2024 is a matter of days, as the Public Debt Management Organization (PDM) is expected to proceed with the front-loaded implementation of the country’s borrowing program.
The timing for the issue of bonds of around 3 billion euros is considered positive, as bond yields have shown a significant de-escalation over the last months, while the estimates for the first interest rate reductions by the European Central Bank in 2024 and the prospect of new upgrades of the country in 2024 create “safe conditions” so that Greece can tap the market for the first time this year.
Greece seeks to raise a total of 10 billion euros, which is a relatively small amount in relation to the amount of the debt but also compared to all other European countries. The issue is expected to attract high interest following the acquisition of the investment grade.
In any case, the upgrade has increased the demand for Greek bonds, with the government aiming to record both low borrowing costs, and “quality” demand, but also high coverage rates. The duration of the bond will be determined according to the usual criteria of the Greek bonds – that is the curve of the Greek bonds – while the amount is very likely to rise to 2.5-3.0 billion euros, in order to immediately cover a significant percentage, about 30%, of the annual loan program.
