Greece: strong demand for 1st bond in 4 years

[dipsydoodle]

Source: Associated Press

ATHENS, Greece (AP) — Greece said it had received strong interest for its first bond issue in four years on Thursday, when it auctioned off five-year debt amid growing signs of market confidence.

The country, which has been locked out of the market by high borrowing costs since 2010, was initially seeking to raise 2.5 billion in the sale. The final results of the auction, including the average interest rate it will pay investors, were not yet made public. But officials indicated they were good.

Speaking during an early morning television news show, government spokesman Simos Kedikoglou said there was "great interest" in the bond.

"We have, if I'm not mistaken, a six-fold coverage," he said. Greece can choose to accept more bids than they originally aimed for if the interest rate is attractive.

Read more: http://bigstory.ap.org/article/greece-taps-bond-market-1st-time-4-years

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This is partly attributable to the the conditions now attached to their bond sales : written under English law making them effectively bullet proof.

[joshcryer]

1. Thanks to austerity.

Yay.

[dipsydoodle]

2. Greek bond sale hailed a success after raising €3bn

Greece has made a successful return to the financial markets, raising €3bn (£2.4bn) in its first bond sale in four years.

Inside the Greek government, officials are already hailing the bond sale as "more than a triumph."

Strong demand has pushed down the yield, or interest rate, on the five-year bonds to just 4.95%, as investors scurry to take part in the debt auction. That's a lower rate of return than expected, which has pleased the Athens government.

The sight of a car bomb in Greece overnight did not deter bidders. Bankers in Greece confirmed to our Helena Smith in Athens that the order book hit the €20bn mark on Thursday morning, making it six-times oversubscribed.

http://www.theguardian.com/business/2014/apr/10/greece-raises-3bn-euro-successful-bond-sale