Greece draws strong demand for 10-year bond reopening

ATHENS/AMSTERDAM: Greece drew strong demand for a 10-year bond it reopened on Wednesday to take advantage of record low yields.

The sale attracted offers worth 16 billion euros. Guidance was revised to mid-swaps plus 140 basis points, authorities said.

Greece aims to raise up to 2 billion euros from the bond which matures June 18, 2030, an official said on Tuesday.

Authorities have appointed Barclays, Citi, IMI-Intesa Sanpaolo, Morgan Stanley, Nomura and Société Générale as joint lead managers for the sale.

Yields of Greek bonds have dropped to record lows in recent months.

Greece issued a 10-year bond in June with a yield of 1.57% and investors' demand exceeded 16 billion euros. The yield had dropped to 1.14% on Wednesday.

Greece, which returned to international bond markets in 2017, has set aside nearly 34 billion euros from unused bailout funds and cash raised from markets. It has already raised 7.5 billion euros from bond issues this year.

The country, which emerged from a decade-long debt crisis in August 2018, was looking forward to an economic recovery this year but the coronavirus pandemic has changed its expectations and it now sees its economy shrinking by up to 10%.

Greece may also spend part of its cash reserves to boost its armed forces following a rise in tensions with Turkey over energy resources in the eastern Mediterranean.