From The Financial Times
January 29, 2019
Katie Martin in London and Kerin Hope in Athens
Greece has raised €2.5bn in a carefully choreographed return to the international bond markets, riding a wave of goodwill after its recent diplomatic efforts over Macedonia and making the most of supportive market conditions.
The five-year bond, the country’s first since emerging from its third international bailout programme in August, had a coupon rate of 3.45 per cent and yield of 3.60 per cent. It drew over €10bn in demand.
Finance minister Euclid Tsakalotos said the issue had “exceeded all our expectations.”
He added that “it was very positive” there were so many long-term investors, which significantly reduced the number of hedge funds participating.
Valdis Dombrovskis, European Commission vice-president, said Greece’s return to the markets was “a very delicate task”. After nine years without regular borrowing and saddled with a debt equal to 180 per cent of GDP, Greece “doesn’t have much room for manoeuvre and not much room for mistakes”, he said.