Issuance of a Hellenic Republic Government Bond

The Hellenic Republic announced the issuance of a bond with a two arms transaction consisting of:

  • An exchange offer as well as a redemption offer for cash addressed to holders of Hellenic government bonds maturing in 2019.
  • A new 5-year fixed rate benchmark bond issue maturing in 2022.

This transaction constitutes a part of an overall strategy, which aims at:

  1. Preventive management of immediate, future, financing needs.
  2. Greece’s reduction in financial needs in 2019.
  3. The issuance of a bond with satisfactory liquidity, which will be a reference point in the yield curve of the Hellenic government bonds as part of its reconstitution.

This choice is a major step of the strategy of Greece in order to regain a viable and stable access to the international markets.

This decision to initiate this change, was based on a series of positive developments for Greece.

  1. Eurogroup’s decision on the 15th of June.
  2. The credit rating upgrade of the country in Caa2, by Moody’s, on June 23rd 2017.
  3. The country’s exit from the excessive deficit process on July 12th 2017
  4. The agreement on the IMF participation in the program, on July 20th 2017.
  5. The upgrading of the prospect of the Greek economy by Standard and Poor’s, on July 21st 2017.