Portugal to raise up to 1.25 billion in dual bond auction next Wednesday

Portugal will return to the medium-term debt market next week. The Treasury and Public Debt Management Agency – IGCP announced this Friday that it will hold a double auction of six and nine-year Treasury Bonds (OT), in which it aims to raise up to 1,250 million euros.

“On the 10th of March 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 2027 (OT 0.7% 15Oct2027) and on October 2030 (OT 0.475% 18Oct2030) with an indicative global range amount of EUR 1000 million to EUR 1250 million,” the agency announced in a statement.

Portugal has taken advantage of the more favourable market conditions leveraged by the European Central Bank (ECB) policy to finance itself at low costs. In fact, Portugal has never financed itself at such a low cost in the debt markets as at the start of this year. The interest rate on issues placed in January fell to 0.2% in average terms, which represents the lowest rate ever.

It was in this period that the last debt issue to mature in October 2030 took place, in which the country achieved – for the first time in this period – a negative yield of -0.012%. Demand was 3.02 times greater than the offer.