Greece Takes Step to Normalcy With Bond as Bailout Nears End

by Dramelin 6:30 AM 0 comments

Greece is issuing a new seven-year bond in another step toward exiting a bailout program in August that has kept the nation afloat.
The country may price the euro 2025 notes Thursday in the 3.
75 percent area, people familiar with the matter said, asking not to be named because they’re not authorized to speak about it.
Barclays Plc, BNP Paribas SA, Citigroup Inc and JPMorgan Chase & Co.
are the bookrunners for the bond.
The government aims to create a cash buffer of about 20 billion euros ($24.
5 billion) by the time its bailout program ends in August, of which half will come from markets and the rest from European Stability Mechanism bailout funds.
It also plans three-year and 10-year offerings in the coming months as it tries to cement its bond market recovery from a 2012 debt restructuring by rebuilding a yield curve.
Market turmoil this week delayed the issue after the government announced it on Monday.
Greek government bonds fell on Thursday, with the yield on the 10-year benchmark rising 8 basis points to 3.
77 percent at 1:35 p.
The Greek government is now turning its attention to discussions on further debt relief and post-bailout arrangement for the country.
Finance Minister Euclid Tsakalotos has said Greece expects a different kind of monitoring from its bailout lenders that will focus on achieving agreed targets, and not micromanaging how the country will meet them.
At the same time, Greece’s international creditors are trying to find common ground on their debt sustainability analyses, as there are still different estimates for the debt trajectory between European institutions and the International Monetary Fund.
— With assistance by Eleni Chrepa, and Paul Tugwell.