Greece Prepares to Offer Bond Joining Periphery Euro-Area Rush

Greece Prepares to Offer Bond Joining Periphery Euro-Area Rush

By Hannah Benjamin

(Bloomberg) — 

Greece hired banks for a five-year euro benchmark sovereign bond sale, becoming the last of periphery euro-area nations to ready a debt sale this month.

Bank of America Merrill Lynch, Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co., Morgan Stanley and Societe Generale SA are arranging the syndicated offering, according to a person familiar with the matter, who isn’t authorized to speak publicly and asked not to be identified. Greece was last active in Europe’s debt market about a year ago, selling 3 billion euros($3.4 billion) of seven-year notes, a few days after issuing a mandate.

Greece will follow Ireland, Italy, Portugal and Spain into the market as investors’ hunger for yield stokes demand for euro-zone periphery nations’ debt. Spain got a record 46.5 billion euros of bids for a 10 billion-euro sale last week, while Ireland’s 4 billion-euro offering was more than four times subscribed.

The yield on Greece’s 2025 notes sold last year has widened to about 3.8 percent after pricing at 3.5 percent, according to data compiled by Bloomberg.

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