During the first day that investors were able to sign up for the new one-year government bond 146 million euro was raised. This is far less than the amount raised when a one-year bond was launched last summer.
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New one-year government bond proving less popular than was the case when a one-year bond was released last summer
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On Thursday the Public Dept Agency launched two new bonds, a one-year bond and a three-year bond. Of the 164 million euro invested on Thursday, 94 million euro was invested directly via the Public Debt Agency. This contrasts with previous bonds releases when the majority of the cash was invested via the banks.
The 164 million euro collected from investors on Thursday is a far cry from the 2.5 billion euro raised on the first day of last summer’s one-year bonds’ release. However, then the bond was particularly attractive to investors as it offered a net return of 2.8% thanks to a reduced rate of withholding tax being imposed on the interest accrued. This time around the standard 30% rate of withholding tax is being levied leaving investors with a net return of 2.1%.
Meanwhile, the three-year bond that offers a net annual return of 1.75% raised 5.2 million euro on its first day.
Those wishing to invest in the bonds have Friday 1 March to do so through their bank. Those investing directly with the Public Debt Agency have until Thursday 29 February.