NBG swaps Greek govt bonds with new 30-year bond issue
National Bank (NBG), Greece's second-largest lender, swapped government bonds worth about 3.8 billion euros ($4.22 billion) with a new 30-year government bond, the finance ministry said on Tuesday, yielding a capital gain for the bank.
The swap reduces the government's refinancing risk as bonds maturing in 5.4 years were exchanged for a new issue maturing in 2050.
"The exchange helps to further improve the sustainability of public debt, both in terms of debt-to-GDP as well as annual gross funding needs as a percentage of GDP," the ministry said.
The three government bonds NBG swapped for new government paper of equal value had an average coupon of 3.5 percent. They were exchanged for 30-year government paper paying a coupon of 3.25 percent.
The swap will boost NBG's profitability this year, helping the bank to cover capital needs and take part in the ...