Investor demand for Portuguese debt rises

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Portugal has secured more than one half of its financing needs (60%) for 2018 through long-term sovereign bonds.

This week the Portuguese government successfully issued and sold €3Bn in its second bond issue this year.

The IGCP (Treasury & Public Debt Management Agency), the body responsible for public debt management, expects to raise €15Bn in Portuguese government treasury bonds throughout 2018.

In a statement issued on Wednesday, April 11, the IGCP stated that “Portugal has completed around two-thirds of its financial planning” expected for this year.”

In the first quarter €6.5Bn were secured, in the last sale now, €9.5Bn with the Government paying interest to bond investors of 2.325% for bonds reaching maturity in 2034 in an operation that saw “tremendous market interest”.

In terms of the investor profile which took part in the operation, 30,7% went to investment funds, 25.2% to banks, pension funds and insurers picked up 22.3%.