Portugal’s state debt agency, IGCP has hired banks Bilbao Viscaya Argentaria (BBVA), HSBC, JPMorgan Chase, Morgan Stanley, Novo Banco and Societe Generale to carry out the first issue of 10-year bonds in 2017, reported financial news agency Bloomberg.
The Portuguese Treasury expects to raise 3 billion euros with this syndicated issue, and financial daily newspaper Jornal de Negocios said the yield n the issue is expected to be around 4.25%.
This issue was expected by the market, and was one of the reasons for the recent increase in Portugal’s risk, which led yields on 10-year bonds to rise to over 4.0%.
The Portuguese Treasury this year expects to issue between 14 and 16 billion euros in bonds through “monthly issues,” according to the financing programme announced by the IGCP.
The Bank of Portugal said earlier this year that the country’s public debt stood at 241.8 billion euros at the end of November 2016, a reduction of 1.3 billion euros compared with October of the same year. (macauhub)