ATHENS/AMSTERDAM - Greece raised 2.5 billion euros at a historically low cost on Wednesday, with the reopening of a 10-year bond drawing strong demand.
The final pricing has been set at mid-swaps plus 140 basis points, resulting in a yield of 1.21%-1.23%, the lowest ever for the country in any bond tender, a Greek finance ministry official said. Investors' offers exceeded 18 billion euros.
The country issued the 10-year bond in June, raising 3 billion euros at the time, with a yield of 1.57%, taking advantage of record low yields.
"We added liquidity to the 10-year bond that was issued in June to have a benchmark size bond under eurozone terms and be more attractive for investors," the official said.
Yields of Greek bonds have dropped to record lows in recent months, spurred on by ECB purchases.
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.
Authorities had appointed Barclays, Citi, IMI-Intesa Sanpaolo, Morgan Stanley, Nomura and Société Générale as joint lead managers for the sale.
(Additional reporting Angeliki Koutantou and Renne Maltezou in Athens and Yoruk Bahceli in Amsterdam, Writing by Renee Maltezou, Editing by Angus MacSwan) ((renee.maltezou@thomsonreuters.com; +30 210 3376439; Reuters Messaging: renee.maltezou.reuters.com@reuters.net))
