Portugal to issue up to 1,750 million in short-term debt

  • ECO News
  • 11 September 2020

IGCP will hold next Wednesday a double auction of six- and 12-month Treasury bills.

Portugal will return to the short-term debt market next week. The Treasury and Public Debt Management Agency (IGCP) has announced that next Wednesday it will hold a six-month and 12-month double auction of Treasury bills (BT), at which it intends to fund up to 1,750 million euros.

“On the 16th of September at 10:30 a.m. (11:30 a.m. CET) IGCP, E.P.E. is going to auction two Treasury Bill lines maturing on March 2021 (BT 19MAR2021) and September 2021 (BT 17SEP2021) with an indicative global range amount of EUR 1500 million to EUR 1750 million,” the Portuguese Treasury announced in a statement.

The last time Portugal financed itself with these maturities was on July 15. At the time, the Treasury financed raised 1,250 million euros over 12 months, paying an interest of -0.452% and with a demand 2.54 times above supply. At its shortest maturity, six months, the IGCP issued 500 million with a rate of -0.467% and demand exceeded supply by 3.64 times.