Record low rate in bond issue

The state coffers got a 3.5-billion-euro boost on Wednesday through the issue of a new 10-year bond, with Greece registering two new records: Its biggest ever book of offers for a Greek sovereign bond and its lowest ever cost of borrowing.

The country's cash reserves will now grow to about €36.7 billion, sending a strong signal to markets that the country has no liquidity or financing problems.

The sum of bids tabled on Wednesday for the issue by more than 300 investors exceeded €29 billion, beating the 2010 record of €25 billion for a five-year issue, with Greece drawing more than the originally planned €2.5-3 billion. The vast majority of buyers were foreign portfolios and institutional investors.

The final yield came to 0.807%, down 10 basis points on the guidance rate, while the coupon reached 0.75%. The reissue of the 10-year bond last September had...