Portugal’s debt agency in short-term bond issue

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The Treasury and Public Debt Management Agency (IGCP) is to issue short-term bonds to bring in between €1.5Bn and €1.7Bn.

According to information released by the agency, the treasury bonds with six months maturity (17 July 2020) and a year maturity (15 January 2021) will be issued on Wednesday.
The IGCP will also issue €4Bn worth of 10-year bonds at a rate of 0.499%. The IGCP had already announced that it had some of the State’s financing needs for 2020 at the end of last year with €9.5Bn approved.
The IGCP’s expectations are therefore above the expectation of last year when the agency estimated that the State’s financing needs would achieve €8.6Bn.
As to the strategy that the agency would follow for the coming year, the IGCP states that it is based on the “issuance of public debt bonds on the financial markets in euros with the regular issuance of Treasury Bonds (TB) to promote liquidity and an efficient functioning of the primary and secondary markets, looking out for opportunities to undertake the exchange and buyback of bonds”.
At the last bond auction held in December last year the liquid amount netted for the State was €1.3 million.
On 19 February fresh auction will be held of TBs expected to raise between €1Bn and €1.2Bn, followed by an auction on 18 March with values between €1.25Bn and €1.5Bn with the IGCP expecting to net €4.5Bn for the State for these three auctions.