Greece mandates banks for 10-year down payment

Thu Mar 4, 2010 4:11am EST Related News Greece may take more debt steps as EU visit loomsSun, Feb 28 2010WRAPUP 2-Greece may take more debt steps as EU visit loomsSun, Feb 28 2010EURO BONDS-UBI Banca, Barclays, GE Capital European FundingTue, Feb 23 2010FACTBOX - Debt derivatives deals in weak euro zone statesMon, Feb 22 2010Greece faces race to win over markets, EU help or notFri, Feb 12 2010

LONDON, March 4 (Reuters) - Greece has mandated banks tosell a syndicated 10-year euro benchmark bond, a bank involvedin the deal said on Thursday.

Currencies&&&&Bonds

Price guidance was in the area of mid-swaps plus 310 basispoints. The bond was mandated to Barcap, HSBC, Nomura, NBG andPiraeus Bank.

The market has been expecting a sale of around 5 billioneuros. The sale will be a test of market confidence in Greeceafter the government on Wednesday announced 4.8 billion euros($6.5 billion) of austerity measures to cut its budget deficit.[ID:nLDE6220NA]

Greece needs to refinance about 20 billion euros of debtmaturing in April and May, and officials previously said itsfunding needs were met until mid-March.

It is Greece"s second bond issue in the euro zone debtmarket this year. In late January it raised 8 billion euros withthe sale of new, 5-year benchmark bonds.

It paid a hefty premium for that deal of 350 basis pointsover mid-swaps, or 381 basis points over German bunds, with a6.1 percent coupon. Greece received investor orders of about 25billion euros for that bond. (Reporting by Alex Chambers; Writing by Andrew Torchia; Editingby Toby Chopra) (andrew.torchia@thomsonreuters.com; +44 (0) 207 542 9782))

Currencies Bonds