Portugal issues a 10-year bond as bailout years come to an end

THE PORTUGUESE government issued a 10-year bond yesterday, the first in nearly three years, since the country’s major bailout by international creditors in 2011.

There was strong demand for the issue, with bonds yielding 3.57 per cent. Interest on the country’s debt has declined significantly, down from over 15 per cent at the start of 2012.

“After Fitch raised the outlook on its BB+ credit rating from negative to positive, Portugal could soon regain its first investment grade rating with one of the major agencies,” Berenberg’s Christian Schulz said, adding the move was “another milestone on the way to a clean bailout exit”.

Recently, the Greek government returned to debt markets after an even longer absence, issuing a tranche of shorter-term bonds with a yield below five per cent.