Portugal exercises call option on 1.32 billion euros of debt

28 February 2014

Portugal’s treasury and debt management agency Agência de Gestão da Tesouraria e da Dívida Pública de Portugal Thursday exercised a call option on 1.32 billion in Treasury Bonds due in October 2014 and October 2015, the agency said.

The agency planned early redemption of a larger amount of debt but investors accepted just 293 million euros at a rate of 0.39 percent, of Treasury Bonds due to mature in October of this year and 1.026 million euros (of a total of 9.249 billion euros), at a rate of 1.19 percent, of another issue of Treasury Bonds due to mature in October 2015.

The state thus reduced its burden at peak repayment times just ahead of the end of its official adjustment programme, with the total for the two issues falling to 13 billion euros.

“Portugal managed to the pressure on repayments it will have to make, particularly in 2015, which was the issue for which the redemption was more significant but this operation was small considering that interest payment savings on the two issues is 20.2 million euros,” said Filipe Silva, asset management director of Banco Carregosa. (macauhub)