State has €1.8Bn for savings bonds

Portugal’s treasury and public debt agency IGCP is to issue €1.8Bn of savings bonds as part of its programme to raise finance for the State in the third quarter.

The State has €1.8Bn of debt earmarked for savings bonds (Certificados de Aforro), Treasury Certificates (Certificados do Tesouro – CT) and Savings Plus Treasury Bonds (Tesouro Poupança Mais (CTPM).
By the end of May, in net terms, the State had raised €10.2Bn of the foreseen amount required from subscriptions to these retail savings products. According to estimates there is still around €1.8Bn to sell.
According to the latest estimates, Portugal’s net financing needs is around €10.6Bn per annum, a fall of €1.8Bn on the original estimate for the State’s financial needs for 2023.
The Government recently announced the end of the Series E. Treasury Certificates that offered a maximum yield of 3.5% and was replaced by Series F with a maximum base yield of 2.5%.
On Thursday last week the Finance minister, Fernando Medina warned of the risks of State financing when loans are mainly covered by the retail market, particularly when there are cashed in early compared to sovereign bonds issued on international markets.
Whereas Savings Bonds are a retail product aimed at small investors, such as families, Treasury Bonds or Sovereigns are issued by the Portuguese Republic on the international markets for large investors and sold in auctions.
As to Treasury Bonds, Portugal will carry out two auctions of short term debt in the third quarter of 2023 in order to raise €2.750Bn according to the IGCP which is led by Miguel Martín. It will also go to the market on July 19 with six and 12 month treasury bonds to raise between €1Bn and €1.2Bn.
The IGCP estimates that Treasury Bonds will have financed the State by €14.2Bn in 2023, down by €1Bn compared to an estimate made in its financing programme for the second quarter.