REPEAT: MNI: Portugal Estimates E15Bn Bond Issuance In 2018

Repeats Story Initially Transmitted at 09:55 GMT Nov 9/04:55 EST Nov 9

By Nick Shamim

     BRUSSELS (MNI) - Portugal will likely issue E15 billion worth of bonds in

2018 and intend to issue a new 10-year benchmark bond, Chief Executive Officer

of the Portuguese Treasury and Government Debt Agency (IGCP) said in exclusive

comments to Market News.

     Speaking to MNI on the sidelines of Association Financial Markets in

Europe's Bond Conference, Cristina Casalinho said the IGCP has not yet decided

on its syndicated issuance plans for 2018.

     When asked if Portugal is planning to issue an ultra-dated bond in 2018,

Casalinho said "no decision has been made," and added "but for constitutional

reasons, Portugal cannot issue bonds with tenors above 50-years."

     Portugal has not made a decision yet whether or not it plans to sell

foreign currency bonds next year, she added, but would keep abreast of

developments. 

     "We continue to monitor market conditions and investor interest," said

Casalinho.

     When asked about Portugal's experience this year in the debt market, the

debt official said "2017 has been a positive year for PGBs and noted there has

been a very significant drop in yields in the PGB market. 

     "10-year Portuguese bonds are now trading below 2% and bonds with

maturities up to three years are yielding negative rates," said Casalinho.  

     "This relevant change from the beginning of the year comes on the back of 

improved macroeconomic fundamentals, better than expected fiscal execution and a

more positive credit assessment of Portugal by rating agencies," Casalinho

added.

     Casalinho confirmed that it has already concluded its bond issuance

programme for 2017 following Wednesday's auction of 4.125% Apr 2027 OT bond for

E1.125 billion at 1.929% yield and a bid-to-cover ratio of 1.57.

     Portugal has issued E15 billion of OTs this year, Casalinho added.

--MNI London Bureau; tel: +44 203-586-2229; email: nick.shamim@marketnews.com