THE Hellas shows to change level for good and the foreign investors at every opportunity they give a vote of confidence to the country by buying Greek assets. Yesterday’s success in bond issue of the Greek government with a duration of 30 years which is so far away shows in the clearest way that Greece no longer scares anyone.
The “stone years” are gone and markets are investing in the country assuming that the best is yet to come. Of course, it is not only the issuances of the Greek government that attract the interest of foreigners, but also the similar issuances of the banks, the disposal of the shares held by the government in the banks and the issuance of the International Airport with its listing on the Stock Exchange.
Another element that shows that something has changed for the country is the fact that the investors who come intend to stay and are not classic speculators. Banks, long-term investment funds and insurance companies took the vast majority of yesterday’s bond and they were the ones who offered almost 30 of 33 billion and the remaining 3 billion belong to Hedge Funds.
A few years ago, the picture was quite different, with hedge funds taking the lion’s share of much shorter-duration issues to limit any risk that issues from a country that had just exited or was approaching exit might have.
It is worth noting that in yesterday’s 30-year edition, 330 investors from all over the world participated, who seem to have been particularly concerned regarding geopolitical risk, but also the upcoming European elections, and bought an asset that Greece will be called to pay in June 2054 !
Yesterday’s issue was underwritten by BNP Paribas, BofA Securities, Deutsche Bank, Goldman Sachs Bank Europe SE, JP Morgan and Piraeus Bank.
Based on yesterday’s data, Greece has covered more than 80% of its annual needs and thus has the luxury of choosing when the next outing to the markets will be. Another gain for Greece is that it gets a wider interest rate curve with bonds that will be traded in the secondary market over a 30-year period and not just up to 15 years or with bonds that ended up at the ECB.
The Greek government yesterday raised 3 billion euros at a yield of 4.125% and a spread of 150 basis points from the 30-year German Bond (moving in the secondary market at 2.7%), when the Italian bond trades at 4.5%, of Spain and Cyprus hovers around 3.9% – 4%, France and Belgium above 3.5%, while other countries have not even issued a 30-year bond that is circulating on the market (Malta, Croatia, Slovenia, Lithuania, Latvia).
Outside the EU, in fact, the 30-year US and UK bond is trading at 4.8%, which means that if all the above countries except Germany issued a similar bond today, its yield would range between approximately 4% and 5%.
According to what was stated by the Minister of National Economy and Finance, Kostis Hatzidakis, “the issuance of a 30-year bond, which ODDIX proceeded with today, is a significant success for the country and another vote of confidence from investors in the prospects of the Greek economy.
In a period of international geopolitical uncertainty, the Greek issue was oversubscribed by 11 times, as investors’ offers exceeded 33 billion euros, while the interest rate was set at a level that certifies the investment grade and is directly compared to the corresponding interest rates of other Eurozone countries.
Today’s success reflects, among other things, the positive assessments of the international rating agencies, which in turn are based on the serious fiscal policy, which the Greek government implements and will continue to implement consistently”.
Source: newsbeast.gr
Read also
Today Patras welcomes the Olympic Flame, the stations and the traffic regulations
Easter 2024: Festive hours from today in stores, when does it start in Patras
Tax returns 2024: Platform opens today, all changes to form E1
Mareva Mitsotakis: In Zakynthos for the reopening of the Lyceum of Greek Women PHOTO
EMERGENCY: New engagement for the “Hydra” frigate in the Gulf of Aden
Fraud of €2,500 once morest a professional in Patras
Instant update with all the news now and via WhatsApp – See here
#Foreigners #show #confidence #Greece
