PDMO sells 12 mln in 6-year bonds, cuts fu­ture rates

Financial Mirror (Cyprus) - - FRONT PAGE -

The Min­istry of Fi­nance sold 6-year gov­ern­ment bonds worth EUR 12 mln in its monthly of­fer this week, but also pro­ceeded to lower the in­ter­est rates for a sec­ond time that had made the re­tail bonds at­trac­tive to in­di­vid­ual in­vestors. The Public Debt Man­age­ment Of­fice said that for the May bonds, the Repub­lic re­ceived 92 of­fers for the to­tal of EUR 11,918,700, of which 5 mln were for­eign in­vestors.

On Wed­nes­day, the PDMO said it was low­er­ing the in­ter­est rate on fu­ture bonds start­ing from the Septem­ber se­ries, to be of­fered on Au­gust 3-20. Thus, the rate will be low­ered to 2.5% for the first 24 months, 2.75% for 24-48 months, 3.00% for 48-60 months and 3.25% for 60-70 months. This will gen­er­ate an av­er­age 6-year yield of 2.79%, down from the 4% av­er­age at the launch of the pro­gramme. As a con­so­la­tion prize, the PDMO said that the present rates will be main­tained through the cur­rent and pre­vi­ous bond is­sues, un­til they ex­pire.

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