The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Sovereign bonds: Portugal passes milestone on a difficult road

The country’s recent sovereign bond might or might not amount to a return to full market access, but it is certainly a positive development. Its progress on its economy and the state of its banks is equally crucial.

In early May, Portugal took to the bond markets in style. The sovereign raised €3 billion in 10-year funding in a deal that attracted a €10 billion-plus book from 369 investors. It did so at almost the same spread it had paid for five-year funds a couple of months earlier. "That’s quite a statement," says PJ Bye, global head of public-sector debt syndicate at HSBC, one of the leads on the deal. So, is that it? Portugal rehabilitated in the eyes of the world’s investors, with ready access to funding, over the worst and ready to rebuild? The bond is unquestionably good news and a vote of confidence, but Portugal remains a sub-investment-grade developed-world economy with precious little growth and a troubled banking sector. Progress has been made, but there are plenty more hills ahead.

The bond issue was important, and not just because of the money. Although Portugal had tested the waters with a tap of an existing deal in January, this was the first new government bond issue since the country requested an international lifeline two years ago.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree