With this bond exchange offer, Portugal is able to ease the payments it has to make in the coming years.
Portugal will perform a bond exchange offer this Wednesday, with the purpose of smoothing debt repayments scheduled for the coming years and obtaining savings with lower interest rates.
IGCP announced that it will repurchase government bonds maturing in 2022 (2.2% coupon) and 2024 (5.65%) in exchange for new debt maturing in 2028 (2.125%) and 2034 (2.25%), respectively.
This is not the first time that the agency that manages public debt (IGCP) has carried out this type of operation this year. In the last bond exchange offer, it managed to postpone repayments of €1,361 million that it would have to make in 2023 and 2024 to 2028 and 2037.
With this operation, Portugal is able to ease the payments it has to make in the coming years. In 2022, it must make repayments to investors of around €9 billion, an amount that rises to 12 billion in 2024.