ATHENS- Demand for a new 10-year bond Greece issued on Wednesday has exceeded 22 billion euros a few hours after books opened for the sale, the country's debt agency said.
Updated pricing guidance was 5 basis points lower than that initially announced at mid-swaps +105 basis points, meaning a yield lower than 1.0%.
The demand was the greatest for a Greek 10-year bond since 2010. It suggests Greek debt is becoming a more attractive asset, three years after Greece emerged from its international bailouts.
"It is the first time Greece borrows in the 10-year tenor with a cost lower than 1.0%. It is a historic low," said Costas Boukas, head asset manager at Beta Securities.
Greece last sold 10-year debt in September 2020 with a yield around 1.2%. The yield was 0.696% on Wednesday.
Greece has said it plans to borrow 8 billion to 12 billion euros this year to maintain a continuous presence in international debt markets.
Barclays, Citi, Deutsche Bank, Morgan Stanley, Nomura and Eurobank were appointed to jointly lead manage the issue.
Earlier this month, Greece raised 2 billion euros ($2.43 billion) by reopening a 30-year bond through a private placement with two Greek banks.
The country aims to reduce its ratio of debt to gross domestic product - estimated at 208.9% in 2020 - and preserve a cash buffer from unused bailout loans and money raised from markets.
(Reporting by Lefteris Papadimas, Renee Maltezou; editing by William Maclean, Larry King) ((lefteris.papadimas@thomsonreuters.com; +30 210 3376477; Reuters Messaging: lefteris.papadimas.reuters.com@reuters.net))
