Greece to return to debt markets after 3-year absence

By Idyli Tsakiri

ATHENS (AA) - Greece looks set to return to the international bond markets following a three-year absence, according to a document released on Monday.

According to the state document, Greek five-year euro-denominated bonds amounting to 4 billion euros ($4.6 billion) will be priced on Tuesday with BNP Paribas, Bank of America Merrill Lynch, Citigroup, Deutsche Bank, Goldman Sachs and HSBC as joint lead managers.

The tender offer will be open to new investors as well as holders of bonds that mature in 2019 in the form of roll-overs, at 102.6 cents plus accrued.

Securities will be issued on Tuesday and the target is to achieve an interest rate lower than 4.95 percent.

Greece has been suffering from a financial crisis for almost a decade, adopting austerity memorandums and finally crashing out of international lending markets in 2014.

Although Athens is still in an internationally-funded bailout program until July 2018, returning to bond markets will be an important move for the country and its main governing party SYRIZA.

Eurozone ministers approved billions in funding for Athens just earlier this month. Standard & Poor’s rating agency last week upgraded its valuation of Greek government debt to ‘positive’.

The country’s return comes on the same day as European Commissioner for Economic and Financial Affairs Pierre Moscovici is visiting Athens.

He will meet Greek Prime Minister Alexis Tsipras, Finance Minister Euclid Tsakalotos and Bank of Greece Governor Yannis Stournaras, among others.