After a three year absence from the financial markets, Greece will attempt tomorrow to offer though a book building process, the auction of a five year Treasury bonds.
The auction is addressed to current bondholders whose bonds expire in 2019 as well as new investors.
The group of underwriters who will float the new issue are Goldman Sachs, BNP Paribas, Citigroup, and Deutsche Bank.
The new IPO will be issued tomorrow and the goal is to set a yield lower than 4.95% and the expected amount of raising is estimated at 4 billion euros. IPO is a public offering process in which securities are sold to institutional investors, who in turn, sell them to the general public.
Book building is a systematic process of generating, capturing and recording investor demand for securities during an IPO (initial public offering) during the issuance process to support efficient price discovery.
It is interesting to point out that the current bonds that expire will be bought at a premium of 102.6% of nominal value.
