Greece raised three billion euros (3.5 billion U.S. dollars) selling five-year state bonds at a 4.625 percent interest rate in what was the country's first test return to international bond markets in three years, Greek national news agency AMNA reported on Tuesday.
Demand reached 6.5 billion euros for the new bonds as well as the parallel switch offer from an older issue, according to government sources.
Shut out of international markets since 2010, the debt-ridden country had made a similar test return in 2014, raising three billion euros at a 4.95-percent interest rate.
"Our return to the markets is an especially important landmark in the course toward exiting the crisis," Prime Minister Alexis Tsipras tweeted on Tuesday.
Greece is expected to return to the markets in 2018 when the current bailout program ends, its third since 2010, and Tuesday's successful test return reflects the positive course of the Greek economy, government sources commented.
The decision to return to the markets was based on many favorable developments for Greece in recent weeks, according to the sources.
These developments included the EuroGroup's decision on June 15 to close the second review of the third Greek bailout, and the European Commission's announcement on July 12 that the excessive deficit procedure for Greece would be closed.
Athens also took the step taking into consideration the International Monetary Fund's decision on July 20 to join the Greek bailout, as well as Moody's credit rating for Greece being upgraded to Caa2 on June 23 and Standard and Poor's upgrading of its outlook to positive on July 21, according to the government sources. (1 euro = 1.16 U.S. dollars)
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