Portugal sells debt next week but wants to raise … – Business Journal – Portugal

Portugal sells debt next week but wants to raise … – Business Journal – Portugal

Portugal sells debt next week but wants to raise less than expected

After the debt issuance to 15 years, will return to the IGCP of short-term debt markets. Securities with maturity of three to 12 months in order to raise up to EUR 1,000 million will be offered. The program pointed to 1.250 million.

Portugal will hold a new public debt issue next Wednesday, September 17th. The goal is to raise between EUR 750 million and one billion. Lower than anticipated in the financing program values.

The next Wednesday, September 17, at 10.30am, two auctions will be held. A line of Treasury will reopen to three months and launched a new line of Treasury bills to 12 months, according to a statement from the agency that manages the Portuguese public debt, the IGCP.

The overall indicative amount get this operation is between 750 million and EUR 1,000 million, according to the same statement sent by the team led by Cristina Casalinho agency.

This amount is slightly lower than what was foreseen in the financing program for the third quarter, pointing to between 1,000 and 1,250 million euros. Whenever presents these funding programs, the IGCP opens the door to “make adjustments” to operations. There was an adjustment in the operation which will be held in September.

This month, the Portuguese Republic had already returned to markets for an operation that was not planned, the issuance of debt maturing within 15 years. The auction was realized, on 3 September, with the help of the banks in which Portugal is funded by EUR 3.5 billion.

This operation takes place in the primary market, when the state sells debt directly. It is this market that represents the cost of financing the state takes over. The secondary market is where investors they exchange debt securities previously issued by the state.