LONDON, April 9 (IFR) - Greece is lining up a euro five-year
bond sale to take place on Thursday, according to three sources.
Two market sources and one government source said that the
book for the transaction would open on Thursday. The government
source said there will be an announcement by the Public Debt
Management Agency later on Wednesday.
Market participants said the government is targeting a yield
of less than 5% on the new bond. The current yield on Greece's
2024 bond is around 6% according to Tradeweb, and around 220bp
more than 10 year Portuguese bonds.
This is an important milestone for one of Europe's most
troubled economies. The last time Greece had access to capital
markets was back in March 2010, when it issued a five-year bond
at 310bps over mid-swaps.
Since then, there are have been two bailout programmes worth
245bn. Investors in Greek bonds suffered a 53.5% notional
haircut in February 2012, and they participated in a bond buy
back at an average price of 33.5% of par in December 2012.
Greece is rated nine notches below investment grade at Caa3
by Moody's. Standard and Poor's and Fitch rank Greece six
notches below investment grade at B-.
(Reporting by Alex Chambers, additional reporting by George
Georgiopoulos; editing by Sudip Roy)