Greece is expected to issue on Tuesday a ten-year bond maturing on June 15, 2035.
As last year, the Greek government is present in the markets in the first month of the year, demonstrating its readiness amid the turmoil in the bond market.
The goal is to raise 3 billion euros or more depending on the demand.
Amid rising yields on European bonds, and not only, and the increased appetite of investors for Greek bonds, the yield on the 10-year bond stands at 3.46%, and it is estimated that covering the above amount will not be difficult.
The yield on the French ten-year bond stands at 3.44% and the corresponding Italian at 3.82%.
Investors
Based on data from the Hellenic Capital Market Commission, after the recovery of investment grade, the percentage of hedge funds’ participation in Greek bond issues has been limited to 6.7%, from 11% in 2019.
Institutional investors increased to 63.7% in 2024, from 53.7% in 2023.
By raising an amount of 3 billion euros through the issuance of the 10-year bond, the Greek State will have raised 30% of this year’s borrowing needs, which amount to 8 billion euros this year.
Last year, at the end of January, Greece also tapped the markets through the issuance of a 10-year bond, raising 4 billion euros, with bids reaching 35 billion euros and the interest rate reaching 3.47%.
Referring to the country’s borrowing program in 2025, Minister of National Economy and Finance, Kostis Hatzidakis, emphasized that the main objectives for this year are, among others, maintaining interest rate risk at current low levels, further reducing the risk of increased future interest expenses, limiting refinancing risk while creating space for issuance activity, as well as gradually reducing and simultaneously maintaining the amount of cash reserves at satisfactory levels.
Public Debt Management Agency (PDMA) loan program
According to the PDMA loan program for this year, the financing needs amount to 15.2 billion euros, of which 3.45 billion euros relate to the repayment of bonds, 4.75 billion euros to the repayment of interest, 5.3 billion euros to the early repayment of two more installments from the bilateral loan with the Eurozone and 5.96 billion euros to the financing of projects of the Recovery Fund.
