Portugal returns to the debt market next week

  • ECO News
  • 6 October 2017

The Portuguese Debt Management Agency (IGCP) wants to place 1,250 million euros in Treasury Bonds maturing in five to ten years.

Portugal will return to the debt market next Wednesday, on October 11th. The agency which manages the Portuguese public debt announced, this Friday, they aim to place 1,250 million euros in a double auction of Treasury bonds maturing in five and ten years.

“On the 11th of October at 10:30 a.m. (11:30 a.m. CET) IGCP, E.P.E. is going to auction the Portuguese Government Bonds maturing on October 2022 (OT 2.2% 17-Oct-2022) and on April 2027 (OT 4.125% 14-Apr-2027) with an indicative global range amount of EUR 1000 million to EUR 1250 million”, states the institution headed by Cristina Casalinho.

When only considering the fourth quarter of 2017, IGCP has announced they intend to issue up to 2.75 billion euros in Treasury Bills, in addition to performing the Treasury bonds’ auctions. The first issuance of Treasury Bills will take place on October 18 and the second will happen on November 15, involving an amount that should stand between 2,250 million and a maximum of 2,750 million euros.

In the last ten-year debt auction, performed in September, the Treasury was able to place 850 million euros with a 2.785% interest, a much smaller amount than what had been demanded by investors in the previous auction. As for the short-term debt, Portugal is receiving record negative interests, benefit from Standard & Poor’s decision to increase Portugal’s rating.

PUB