Greece is expected to tap the market with the issue of a new 10-year bond. The Public Debt Management Agency (PDMA) has mandated Alpha Bank, Barclays, Citi, Commerzbank, Nomura and Societe Generale to proceed with the issuance.
Greece will make its 2024 market debut with a new bond when all European countries and the European Commission have already borrowed from the markets. Taking advantage of the particularly increased investment interest and having acquired the investment grade, PDMA will tap the markets before the end of January.
The yield on the Greek 10-year bond has fallen to 3.28%, about 100 basis points above the corresponding German one and only 15.50 basis points above the Spanish.
PDMA plans to issue bonds up to 10 billion euros in 2024. The Greek state’s borrowing needs for 2024 reach 18.999 billion euros. The state’s borrowing needs include 5.463 billion euros for refinancing maturing bonds; 4.8 billion euros for the repayment of interest and other individual liabilities; 12 billion euros for the definitive redemption of promissory notes; and 3.589 billion euros for liquidity needs at specific time periods in 2024.
In its overview, PDMA has said its funding strategy for 2024 will focus on the continuous presence in international debt markets, accompanied by the reduction in the level of public debt, proactive management of the debt portfolio and the preservation of a significant cash buffer.
