The Portuguese government is preparing to launch during the next few hours a new emission sindicada debt in ten years.
according to Reuters, the Treasury has mandated six banks (one national and five foreigners) to find investors interested in purchasing a new line of titles bond of the Portuguese State with maturity in 2027. The banks that make up the union which will lead the operation are the New Bank, BBVA, HSBC, JP Morgan, Morgan Stanley, and Societé Générale.
issuance sindicada debt is a drop operation of securities account with the support of a group of banks that are in charge of finding demand in the markets, not being subject to an auction competitive. It is usually through emissions with trade unions that the Portuguese State launches new lines of Treasury bonds, since the amount issued is higher, and we need to ensure that there is enough demand.
This issue was already widely anticipated by the market and had even been signalled by the minister of Finance Mário Centeno in statements to the press.
Will be probably tomorrow that will be announced the results of the issuance, including the amount issued, and the interest rate that Portugal was able to finance.
This operation comes at a time when Portugal is subject to some pressure in the markets for public debt, with interest rates at 10 years exceeding 4%. The main factor affecting the conditions of access of the country to the markets is the expectation of a reduction of the support of the ECB through purchases of bonds in portugal.
This Tuesday, the Agency and Treasury Management of the Public Debt – IGCP published the Program of Financing of the Portuguese Republic to 2017 in which it anticipates issuing in the course of this year public debt in the medium and long term, for an amount set between 14 and 16 billion euros.