LONDON (MNI) – Greece needs to raise no more than E15.5 billion by
the end of May based on the Public Debt Management Agency’s cash balance
as of the end of March, Petros Christodoulou told Market News
International.

The E15.5 billion requirement is considerably less than some in the
market estimated – given Greece has around E22.4 billion to fund just in
redemption and coupon payments by the end of May.

So far this year, Greece has raised E18.05 billion, which includes
E13.0 billion in new 5-year and 10-year benchmark bonds issued via
syndication on Jan 26 and Mar 4.

Also E2.0bn was issued in a private placement deal conducted in
Dec, which was then seen as pre-funding for 2010.

In addition, E3.05 billion has been raised through sales of T-bills
with 13-week, 26-week and 52-week maturities.

Outflows so far total E5.105 billion and includes, E1.51 billion
T-bill redemption on Jan 15, E1.95 billion T-bill redemption on Jan 22
and E1.645 billion coupon payment on Mar 20.

Forthcoming redemptions include E985 million T-bill redemption on
Apr 13, E1.28 billion T-bill redemption on Apr 16, E8.22 billion bond
redemption on Apr 20, E1.585 billion T-bill redemption on Apr 23, E2.278
billion coupon payment on May 10 and E8.086 billion bond redemption on
May 19.

This therefore implies that the PDMA has a cash balance of around
E7.0 billion.

Market speculation is that the PDMA is mulling a new 3-year
benchmark issue after the Easter break, but there are also market
rumours that a 7-year maturity may be in the cards.

The 7-year sector is considered popular with central banks and
sovereign wealth funds.

In addition, some strategists suggest a possible new 15-year
benchmark is also likely. However, the likely maturity depends on market
demand and conditions. Given the European bond curve has flattened since
February, the risk is on a longer-maturity, i.e. 15-year – also due to
the PDMA’s redemption profile.

Greece’s borrowing programme for 2010 is estimated at E54 billion,
considerably less than last year’s E66.0 billion.

–London newsroom: 00 44 20 7862 7474; e-mail: nshamim@marketnews.com

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