Portugal sets initial price thoughts on new 10yr bond

Tue May 7, 2013 3:32am EDT

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LONDON, May 7 (IFR) - The Republic of Portugal, rated Ba3/BB/BB+, is taking indications of interest from investors on its new 10-year bond, with initial price thoughts set at mid-swaps plus 405bp area, a bank managing the deal said on Tuesday.

The debt sale is expected to raise a minimum of EUR3bn, said another source close to the deal.

The yield on the Portugal's outstanding 10-year bond fell to 5.509% on Monday - its lowest since September 2010.

Caixa Banco de Investimento, Citi, Credit Agricole, Goldman Sachs, HSBC and Societe Generale are managing the deal, in what could be a step towards the country qualifying for the European Central Bank's bond-buying scheme. (Reporting by John Geddie, editing by Natalie Harrison)