Portugal prepares debt swap to push repayments up to 12 years
IGCP goes to the market on Wednesday for a debt swap. It proposes to buy bonds maturing in 2022 and 2024 and issue new ones maturing in 2028 and 2034.
The Portuguese Treasury is preparing a debt swap for longer maturities. The Treasury and Public Debt Management Agency (IGCP) announced that the operation will take place on Wednesday and that securities maturing in both 2022 and 2024 will be purchased. In return, the agency will issue new Treasury bonds maturing in 2028 and 2034.
“On the 28th of April de 2021 at 10:00 a.m. (11:00 a.m. CET) IGCP, E.P.E. is going to perform an exchange offer of the following Portuguese Government bond (PGB): OT 2.2% 17Oct2022; OT 5.65% 15Feb2024,” it announced in a statement.
These two lines are the ones that IGCP wants to buy in the debt market. This repurchase has as counterpart Treasury bonds with maturities of seven and 13 years. The securities that will be sold reach maturities on October 17, 2028, and April 18, 2034.
This type of operation has been common in the agency’s strategy for public debt management. IGCP has taken advantage of low financing costs to carry out these debt swap operations that allow the country to smooth payments to markets in the coming years and avoid the accumulation of repayments.
