Greece planning €4bn bond sale

28 June 2010

Greece is hoping to raise as much as €4 billion ($4.94 billion) in a forthcoming bond sale.

In its first such auction since agreeing to a €110 billion bailout package in May, the bond sale next month will see Greece trade short-term bills – with maturity periods of up to 12 months – to local and global investors.

Philip Brown, managing director of capital markets at Citigroup, told the Guardian that there are reasons to suggest the country has the potential to emerge from its current economic difficulties.

"Overall, Greece is performing pretty well – some of the fiscal reforms are beginning to work, and tax collection is starting to show some fruits," he stated.

In April, Greece managed to raise €1.56 billion in an oversubscribed bond issue.

Yields were set highly to attract investors, with a 4.55 per cent rate for six-month bonds and 4.85 per cent for 12-month issues, reported BBC News.

By Claire Archer

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