Greece has mandated banks to sell a syndicated 10-year euro benchmark bond, a bank involved in the deal said on Thursday, according to Reuters. Price guidance was in the area of mid-swaps plus 310 basis points. The bond was mandated to Barcap, HSBC, Nomura, NBG and Piraeus Bank. The market has been expecting a sale of around 5 billion euros. The sale will be a test of market confidence in Greece after the government on Wednesday announced 4.8 billion euros ($6.5 billion) of austerity measures to cut its budget deficit. Greece needs to refinance about 20 billion euros of debt maturing in April and May, and officials previously said its funding needs were met until mid-March. It is Greece's second bond issue in the euro zone debt market this year. In late January it raised 8 billion euros with the sale of new, 5-year benchmark bonds. It paid a hefty premium for that deal of 350 basis points over mid-swaps, or 381 basis points over German bunds, with a 6.1 percent coupon. Greece received investor orders of about 25 billion euros for that bond.
