Greece is expected to tap bond markets Wednesday by reopening a 10-year issue that matures in June 2036, two days before the European Central Bank is due to make its first rate hike of the year.
The Public Debt Management Agency said it has instructed banks Alpha Bank, Barclays, Citi, Commerzbank, Nomura and Societe Generale to handle the issue.
The PDMA’s issuance calendar included a government bond reissue on June 17. In April, the agency reopened a 10-year bond maturing in June 2036, taking €250 million with total bids reaching €507 million.
On Thursday, the ECB is expected to announce a 0.25% hike in its basic rate. Greece’s borrowing costs are among the lowest in the eurozone, just 0.78 percentage points above those of Germany, with the yield of the benchmark 10-year bond at 3.77% on the secondary market.
The country’s debt-to-GDP ration stands at 137%.
