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Portugal gets record demand for new 15-year bond, raises $4.5 bln

Kitco News

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AMSTERDAM/LISBON, July 1 (Reuters) - Portugal raised 4 billion euros ($4.50 billion) via a syndicated debt issue on Wednesday after getting record demand in excess of 41 billion euros for the new 15-year bond, lead managers said.

The 0.9% coupon bond was priced at 0.928%, above the 0.555% yield on a similar-dated, 2.25% bond registered in an auction in February, before the main impact of the coronavirus pandemic was felt in Europe.

That same 2034 bond now fetches around 0.75% in the secondary market.

The final investor demand was well above the previous record of 30 billion euros Portugal gathered for a seven-year sale in April.

Other euro zone peers have also enjoyed strong demand over the past month after very generous central bank stimulus measures have boosted already strong appetite for non-core euro zone debt.

Still, the issuance comes at a price as these countries, often exposed to greater economic risks, have to pay a premium to persuade investors to take on more debt than they did before the outbreak.

The demand included 2.35 billion euros from the lead managers.

Caixabank, Credit Agricole, Deutsche Bank, Goldman Sachs, JP Morgan and Nomura are managing the sale. ($1 = 0.8879 euros) (Reporting by Yoruk Bahceli and Andrei Khalip; Editing by Alison Williams)

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