Portugal attracts “record demand” for seven-year debt. It exceeds 30 billion euros

  • ECO News
  • 2 April 2020

The IGCP closed a seven-year syndicated bond sale on Wednesday. It issued 5 billion in an operation with six times the demand.

Portugal attracted a record demand in the debt issue it held on Wednesday. The final figures show that the country sold five billion euros in an operation in which investors were willing to place six times more, according to the Treasury and Public Debt Management Agency (IGCP).

It was this strong demand that led to the interest rate on the operation standing at 0.726%. The agency led by Cristina Casalinho explains it received “positive feedback from investors” which led to a downward revision of the spread.

The operation had an initial guidance for a spread of 90 basis points against the mid swap rate of the euro at seven years. One hour after the launch of the operation, demand had already surpassed 20 billion, and the spread was revised downwards. It settled at 86 basis points, putting the interest rate at 0.726%.

In total, 382 intermediaries took part in the sale of Treasury Bonds (T-Bonds) maturing on October 15, 2027, including the syndicate of banks: Barclays, BBVA, CaixaBI, Credit Agricole, J.P. Morgan and Morgan Stanley.