Portugal returns to the market with very long term debt

  • ECO News
  • 7 July 2017

IGCP will perform a double debt auction in the upcoming year. It will issue ten-year securities, and it will, at the same time, perform a very long term auction: it matures in 2045.

Portugal returns to the markets to issue longer-term debt. IGCP will hold a double auction with bonds maturing in ten and in almost 30 years, in a time of agitation in the market. The goal of the agency headed by Cristina Casalinho is to obtain up to one billion euros in both financing operations.

“On the 12th of July at 10:30 a.m. (11:30 a.m. CET) IGCP, E.P.E. is going to auction the Portuguese Government Bonds maturing on April 2027 and on February 2045 with an indicative global range amount of EUR 750 million to EUR 1000 million”, is stated by the IGCP.

Commerzbank expected a five to ten-year auction, worth between 1,000 million and 1,250 million euros. IGCP ended up announcing a double auction with longer maturities; this return to longer maturities should be emphasized, since these are almost 30-year maturities.

Anticipating this announcement, Portuguese debt rates increased considerably when compared to other peripheral countries. Although there is a worsening tendency since this morning, it became greater this afternoon, with ten-year rates worsening by 10.4 base points to 3.16%. In 30-year maturities, it surpasses the 4% threshold.