Greece’s Public Debt Management Agency (PDMA) on Tuesday announced another foray into the markets with a five-year bond issue, with the stated timetable being “in the near future.”
The Greek state mandated five banks to issue the new five-year bond, namely, Barclays, BofA Securities, Commerzbank, Morgan Stanley and Societe General.
After already having drained 8.8 billion euros from the markets so far this year, PDMA apparently wants to exploit the very low interest rates with which the country is now borrowing, thanks in part to support extended to Greek securities under the ECB’s extraordinary pandemic program.
While far from confirmed, Greece may be aiming to borrow more than the 12- to 14-billion-euro div initially forecast for 2021, thereby creating a mini “slush fund” in the face of possible hikes in interest rates.
