The Portuguese Treasury will hold on Wednesday an offer of government debt exchange, in order to postpone to 2021 and 2023 to reimburse some of the loans due next year and in 2015. The IGCP, which manages the public treasury, scheduled this with one day in advance, taking advantage of the glide path of the Portuguese debt.
In this operation, the IGCP proposes to public debt holders acquired in three issues (to be amortized in October 2015, February 2016 and October of that year) to exchange these securities by others of equal value to be reimbursed later (in April 2021 and October 2023).
At issue are three lines of bonds issued in the past by IGCP (on different dates and with different maturities) and the Treasury intends to buy back before the deadline of amortization. Investors accept an early redemption of the bonds and, in return, buy new titles that are only reimbursed later.
For this offer, the agency led by Cristina Casalinho does not draw a target for the amount of debt exchange, because the ball is now on the side of investors to get their hands debt securities of those three lines obligations. The first issue relates to securities with a maturity of ten years (bonds issued in 2005 and to repay investors in 2015), the second has a five-year maturity (2011/2016) and the third has a maturity of ten years (2006/2016).
Ultimately, it all accept the offer of IGCP, it would mean that the Treasury could exchange 15 960 million by issuing an equal amount of bonds to win later. The amount involved in the operation will thus depend on the acceptance of those who are holding debt securities.
In the issue which currently expires in October of next year the state issued 6275 million euros, to which is added 3500 million the issue for which the duration is February 2016, more 6185 million auction maturing in October of that year.
At the holders maturing in October 2015, the IGCP, offers 102.702 euros each 100 EUR par value; on the second line of obligations, maturing in February 2016, the offer is 107.16 euros; the bond line titles October 2016, the IGCP is offering 106.85 euros for every 100 euros of par value.
Anyone who accepts the amortization buy new titles, two lines of IGCP obligations : the first is to repayment date in April 2021 and an interest rate of 2.163%; the second ends in October 2023 and has an associated interest 2,838%
In the secondary market -. where it is possible to measure investor sentiment, given the trajectory of interest transactions or mere transaction intentions debt among investors – the Portuguese titles are in this fall on Tuesday in the leading benchmark deadlines. The titles to ten years, the retreating interest by 12.30pm to 2,914 euros.
With this operation, the IGCP seeks to alleviate the debt repayments in the first two full years in which Portugal will be all alone on the market without be receiving in the rear tranches of EU loans and the International Monetary Fund.
No comments:
Post a Comment