Portugal pays 1.2% interest on 20-year government bond
BNP Paribas, Credit Agricole CIB, Morgan Stanley, JPMorgan, Nomura and Novobanco were the banks hired for this operation.
Portugal is expected to pay an interest rate of around 1.2% in the syndicated launch of a 20-year government bond that experienced high demand: a total of €20 billion in orders, including the €2.6 billion guaranteed by the syndicate banks.
The investors’ appetite has already lowered the operation’s interest rate: the premium started at 61 basis points and has fallen to 60 basis points, according to the website IFR. To the spread is added the mid-swap rate of the 20-year euro, which is at 0.61%. In other words, the interest rate was 1.21%.
The new bond line will make it possible to close the gap in the longest Portuguese public debt curve, placing a benchmark between the bonds maturing in April 2037 and February 2045.
BNP Paribas, Credit Agricole CIB, Morgan Stanley, JPMorgan, Nomura and Novobanco were the banks hired for this operation.
