Greece plans 10-year bond reissue, eyes further loan repayment

Greece is moving forward with the reissuance of its benchmark 10-year government bond, which matures on June 16, 2036. The management of this issuance has been entrusted to six banks: Alpha Bank, Barclays, Citi, Commerzbank, Nomura, and Societe Generale, who will serve as Joint Lead Managers.

The Greek government, holding credit ratings of Baa3 from Moody's and BBB from S&P, Fitch, and DBRS, plans to reopen the existing bond through a syndicated offering. The bonds will be issued in dematerialized, registered form and will be eligible for investors under Regulation S. They can also be offered to qualified institutional investors in the U.S. under Rule 144A. The transaction is expected to commence soon, depending on market conditions, and will adhere to the International Capital Market Association's (ICMA) stabilization rules.

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we are not ruling out a second early repayment this year

In parallel, Greece is exploring the possibility of a second early repayment of rescue loans within 2026. Sources indicate this move could amount to "at most 2.5 billion euros." An official from the economic staff stated that a second early repayment this year is not ruled out, but it would only occur if Greece taps the markets again, which is not deemed necessary. This potential repayment would concern loans from the EFSF, which total approximately 130 billion euros, distinct from the 6.9 billion euros scheduled for early repayment on June 15.

Following these steps, the next significant milestone for Greece will be reducing its public debt to below 100% of GDP, a development projected between 2033 and 2034. Debt sustainability analysis remains positive, even under a pessimistic scenario of long-term growth between 0.4% and 0.8%.

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something like that would only happen if we go to the markets once again this year, which is not necessary