The response to the new 30-year bond with which the Greek government is going to the markets to raise 2–2.5 billion euros is great. Specifically, bids have exceeded €32 billion, while the initial interest rate fell by 5 basis points to 170 basis points above the mid-swap, or 4.2%.

This is the second largest exit to the markets this year, following the issuance of the new 10-year in January. The ODI has mandated BNP Paribas, BofA, Deutsche Bank, Goldman Sachs Bank Europe SE, JP Morgan, and Piraeus as Joint Lead Managers for a new security maturing on June 15, 2054.

It is recalled that on April 17, ODDIX reissued Greek securities maturing on February 4, 2035, raising €200 million with a yield of 3.61%.

Already, the 2024 loan programme is 52% covered, as around €5.2 billion of the €10 billion target for the year has been raised. However, the exit from the markets comes against the backdrop of Greece's credit rating outlook upgrade by S&P and the final data for 2023, which showed a primary surplus of 1.9% of GDP, significantly higher than the 1.1% target.

This is, moreover, a move that comes in anticipation of the ECB's interest rate cut, which is expected to generate strong investor interest.

Other positive factors in favour of Athens are the country's low financing needs and its cash reserves of €35.2 billion.

Besides, early loan repayment moves continue as Athens returns to normalcy. Yesterday, Reuters reported on the Greek government's plans to move to early loan repayments of €2.5 billion to €5 billion by the end of 2024 to Eurozone countries. The repayment is likely to take place in the second half of the year.

It is noted that a 30-year security was also issued in March 2021, when bids had exceeded €26 billion, with ODDIX raising €2.5 billion at an interest rate of 1.956% and a coupon of 1.875%.