Portugal repurchases 1.4 billion in two lines of bonds – Markets
The Treasury and Public Debt Management Agency (IGCP) repurchased 1.4 billion euros in lines of two bonds, which matured in October 2023 and in February 2024🇧🇷 With this operation, the institute is able to reduce debt repayments to be made over the next two years, as well as lower debt costs.
The reverse auction had been announced by the IGCP this Tuesday and was taking place during the morning. According to technological information by Bloomberg, which cites the IGCP, Portugal managed to complete the repurchase of 250 million euros in bonds maturing in October 2023 and 1.15 million euros in those maturing in February 2024🇧🇷
According to the Portuguese debt agency, an entity led by Miguel Martin, the coupons of the two lines were set at 4.95% and 5.65%, respectively🇧🇷
In the last auction, last month, the IGCP exchanged three lines of bonds for three lines with a longer term. With this operation, Portugal pushed the repayment of 1,732 million euros in debt, which reached maturity in the next two years, to after 2027, not only checking the cost of financing but also relieving the pressure on debt repayments.
Despite this, by this time last year, the State had already chosen more auctions. This is the fourth auction for the repurchase or exchange of bonds for longer lines this year, two less than last year, which ended up ending 2021 with six.
Text edited by Marta Velho