New retail bond issuance only pays 1.6% interests

  • ECO News
  • 13 July 2017

The Treasury will issue at least 500 million euros in OTRV (sovereign bonds sold to retail investors). It is another public debt securities' issuance for retail aiming to attract emigrants' savings.

The Government authorized the Treasury to issue at least 500 million euros in OTRV (sovereign bonds sold to retail investors – Obrigações do Tesouro de Rendimento Variável). It is another public debt securities’ issuance for retail aiming to attract emigrants’ savings. The interest rate is the lowest ever in OTRV issuances: 1.6%.

In its fifth issuance, the OTRV has a 1.60% minimum interest rate, states the Portuguese Debt Management Agency (IGCP). The agency headed by Cristina Casalinho has never offered such low percentage of these issuances: March’s issuance had a 1.9% interest rate and November’s issuance had a 2% interest rate; in August, it was 2.05% and in April 2016 it was 2.2%.

The “August 2022 OTRV” securities mature in August 2nd, 2022 and enter the market this August the second. IGCP explains that those who want to invest their savings in these public debt security titles will have to place an offer during the subscription period (17 to 28 July, 2017).

This new issuance is available for investments starting at one thousand euros, which can go as high as one million euros through multiple subscriptions. IGCP wants to obtain 500 million euros, but may eventually issue a larger amount.

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