Today's successful debt palcement was an "important step" for Portugal according to the European Commission which believes that the success of the s bond issue will engender increased confidence in the Portuguese economy and constitutes "an important step towards a sustainable return to the international funding markets."
"In a context of a widespread improvement in the eurozone debt markets there is sign of growing investor confidence in the Portuguese economy and an appreciation of the positive effects of the continued rigorous implementation of the austerity programme" according to spokesman Simon O'Connor from the EC’s Economic Affairs office.
Portugal’s Agency for the Management of Treasury and Public Debt (IGCP) said today that €3.25 billion was placed in the market, maturing in June 2019, by Barclays, Caixa BI, Goldman Sachs, HSBC, Morgan Stanley and Société Générale.
According to Portugal’s Minister of Finance, Maria Luís Albuquerque, the 5 year bond issue "went very well" and had "a very satisfying over demand for around €11 billion."
The 5 year bonds were placed at an interest rate close to 4.6%.