Portugal pays 1.55% to issue 1,000 million in bonds to … – Jornal de Negócios – Portugal

The IGCP has chosen to put the maximum indicative amount for the bid bonds, having paid an interest rate of 1.5529%.

Portugal sold 1.000 million euros in government bonds (OT) to six years. An auction in which the Management Agency of the Treasury and Public Debt (IGCP) managed to pay an interest rate of 1.5529%. The search for the transaction amounted to 1.72 times the offer.

The institute headed by Cristina Casalinho opted thus the maximum amount specified for this operation, when the announcement last Friday, May 22 . Thus, the line in question obligations (OT 3.85% 15Abr2021) now has a total of 9.46 billion euros.

Since the interest rate of 1.5529%, the which the IGCP placed the bonds was lower than in the secondary market. It is that the session this Wednesday, May 27, the “yield” of OT to six years up 5.2 basis points to 1.577%.

The demand of investors for this transaction amounted to 1,722 million euros. In other words, demand exceeded supply by 1.72 times.

The last time the IGCP placed bonds with the same maturity was in 2010 at the height of the sovereign debt crisis, having paid 6,156% by only EUR 556 million. However, in 2014 Portugal sold bonds maturing in five years. At the time, paid 1.8563% to 1.000 million in bonds sold.

“There are no surprises, the rate came in line with what is being done in the secondary market,” says Filipe Silva. The director of asset management Banco Carregosa notes that “we continue to do down the average cost of Portuguese debt, with successive placements at rates below the average of our debt which, over time, there-to have a positive effect.”

This is already the seventh operation in treasury bonds that the IGCP performs this year. On 29 April, the institute led by Cristina Casalinho sold 2,500 million, a dual emission syndicated OT 10 and 30. Later that month, Portugal went to market perform an exchange of short-term securities by others with shorter maturities.

This after having sold 10-year bonds in February in two separate auctions. But it was in the middle of the first month of the year that the IGCP has made the most significant operation. Also in double OT auction to 10 and 30 years, the institute led by Cristina Casalinho raised EUR 5,500 million. All in all, Portugal has already achieved in 2015, in net terms, EUR 16 200 million.

(updated News at 11:02 am, with more information)