In a debt exchange offer, the state was able to exchange €1,732 million in bonds that were due to mature in 2023 and 2024 and extend their repayment to 2027, 2032 and 2052.
The Treasury and Public Debt Management Agency (IGCP) held on Wednesday a debt exchange offer that resulted in the purchase of €1,732 million that would mature in 2023 and 2024 and placing that amount in bonds maturing in 2027, 2032 and 2052.
With this operation, the state was able to transfer €1,023 million to 2027 through the sale of OT 0.7% 15Oct2027, 384 million to 2032 through OT 1.65% 16Jul2032 and 325 million to 2052 via OT 1% 12Apr2052.
This debt swap operation will enable the state to extend part of its debt beyond 2027 and, above all, take some pressure off for the next two years. Before the auction, Portugal had over 21 billion treasury bonds maturing between 2023 and 2024. Now that amount has been reduced by 8%.
The bond maturing in 2027 was placed on the market with a price 8.5% below its nominal value, which resulted in an average yield of 2.5%. According to Reuters, the bond maturing in 2032 was placed on the market at a 13% discount, resulting in an average yield of 3.2%. At last, the bond maturing in 2052 was sold by IGCP at a 47% discount with a yield close to 3.6%.