Greece has successfully completed a €30bn voluntary bond swap aimed at boosting market liquidity and attracting long-term investors, according to people involved in the transaction.
“It went extremely well…Take-up exceeded 80 per cent,” one such person said, adding that details of the transaction would be released on Wednesday.
The bondholders participating in the swap included local banks and pension funds along with international investors.
Greece’s debt management agency offered to exchange government bonds issued after a debt restructuring in 2012 for five new benchmark issues with maturities ranging from five to 25 years and coupons from 3.5 to 4.2 per cent.
Completion of the swap marks an important step towards Greece’s planned return to borrowing on the international capital markets early next year.
The government aims to build a cash buffer of €12-15bn as the country prepares to exit its €86bn third bailout. That would require two or three new bond issues to be completed before the bailout ends in August.
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