(Updates with details throughout)
LISBON Jan 10 Portugal's IGCP debt agency said
on Tuesday it would issue between 14 and 16 billion euros of
treasury bonds in 2017 and the country's net borrowing needs
would reach 12.4 billion euros ($13.11 billion).
In the country's financing programme for 2017, IGCP said the
figure for net borrowing this year includes the 2.7 billion
euros the government has already pre-funded to capitalise
state-owned bank Caixa Geral de Depositos this year.
"The financing strategy for 2017 will be focused on the
Portuguese government bonds curve with regular issuance of
government bonds to promote liquidity and the efficient
functioning of the primary and secondary market," the agency
"Opportunities to perform bond exchanges and buyback will be
further explored," it added.
Portuguese bond yields have risen sharply in the past few
weeks, partly on concerns the European Central Bank may soon
reach the limit it can purchase of Portuguese debt under its
asset-purchasing programme. The government hopes yields will
decline on the back of improving economic
IGCP made no mention in the statement of a syndicated bond
issue, which some market observers expect to be launched as soon
as this week.
But it said that its gross issuance amount of government
bonds will be met through a combination of auctions and
syndicated issues. Bond auctions will be held on the second,
fourth or fifth Wednesday of every month.
It said it will issue debt under its euro medium term notes
programme "depending on market opportunities that suit the
overall financing strategy".
The IGCP said issuance of treasury bills will have no impact
on net financing this year and it will hold bill auctions on the
third Wednesday of each month. In the first quarter, treasury
bill auctions will be held on Jan. 17, Feb. 17 and March 17.
($1 = 0.9462 euros)
(Reporting By Axel Bugge; Editing by Andrew Heavens)