Portugal will issue 1,250 million in six and ten-year bonds

Portugal will return to the medium-term debt market next Wednesday. The Treasury and Public Debt Management Agency (IGCP) announced that it will hold a six-year and ten-year double auction of Treasury Bonds.

“On the 22nd 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 July 2026 (OT 2.875% 21Jul2026) and on October 2030 (OT 0.475% 18Oct2030) with an indicative global range amount of EUR 1000 million to EUR 1250 million,” it said.

The auction takes place at a time when Portugal has increased funding in the market to meet the needs generated by the pandemic. It has already made three syndicated sales (against only one in recent years) and has accelerated the implementation of the financing programme.

Just this week, IGCP president Cristina Casalinho said the rapid reaction with a 1.35 billion euro emergency programme (along with the removal of restrictions on the programme) allowed countries to continue to fund themselves without problems.

In Portugal’s case, interest on the 10-year debt soared to 1.3% in April, but has already returned to pre-pandemic levels, negotiating this Friday at 0.432%. The last time the Treasury financed itself with these maturities was on June 10. At the time, it issued 920 million euros over ten years at a rate of 0.595% and demand 1.5 times higher than supply. In the case of the six-year bonds, it placed 585 million euros, with an interest rate of 0.137% and a demand 2.08 times higher.