Portugal Seeks to Widen Investor Base With Treasury Certificate
By Patricia Kowsmann
LISBON--
Portugal's treasury agency said Thursday that it will offer a new debt product to the population as it seeks to widen its investor base and guarantee funding over the next years.
The treasury certificates will have a five-year life span.
Interest on the product will increase from 2.75% in the first year to 5% in the fifth, with an added premium in the last two years depending on the economic growth recorded.
The interest rate is close to what it is currently being negotiated in the markets, the treasury agency said.
Portugal is scheduled to exit its 78 billion euros ($105 billion) bailout program in June next year. After that, it will have to rely solely on markets--and its economy--for funding. The treasury agency had previously said it would seek to offer new instruments to retail investors to help it with that task.
Investors must subscribe to a minimum of 1,000 units for a nominal value of EUR1.
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