24.02.2012
By Simon Miller
Greece has unveiled its bond swap deal for private creditors.
Creditors who sign up to the deal will receive 31.5% of the face value of their current holdings and an additional 15% of the face value of their bonds will be paid as two-year European Financial Stability Facility bonds. In addition, a €30bn (£25.4bn) payment will be made to bondholders from the second bailout package.
Bondholders face a reduced yield on their new bonds with a yield of 2% from 2013 to 2015 and 3% from 2016 to 2020. The bonds will mature in 2042 and will yield at 3.65% in 2021 and 4.3% from 2022.
Greece will not have to settle the exchanges unless 90% of the face value of valid bonds in the Private Sector Involvement are tendered.
The full details are available here and Deutsche Bank and HSBC have been appointed as closing agents for invitations outside the United States.
Other stories you may find of interest:
UK banks have £15bn exposure to PIGS debt
UK banks had a £15bn exposure to the sovereign debt of Greece, Portugal, Italy and Spain in Q3 2011 according to a report from TheCityUK.
Euro slides as Portugal gets downgraded
The Euro has continued to slide this morning after Moody's downgraded Portugal to 'junk' status.
