Greece will this month launch a multibillion-dollar bond in the US in its hunt for new investors, selling itself for the first time as an emerging market country as demand for its debt dwindles in Europe.
Morgan Stanley is being considered to handle the deal after Goldman Sachs’ plans to sell Greek bonds to US and Asian investors this year fell through amid rumors that the Chinese had shunned Athens’ debt.
George Papaconstantinou, Greece’s finance minister, would lead a roadshow to the US “after April 20” but in contrast with plans at the start of the year he would not travel on to Asia, one official said.
Greece is seeking $5 billion to $10 billion from US investors to help cover its May borrowing requirement of about 10 billion euros to roll over maturing debt and meet interest payments.
The issuance is Greece’s first in the US in nearly two years.
Athens is deliberately targeting emerging market investors, who only buy debt that pays high yields, as demand has dropped markedly on successive bond deals in Europe.
“Greece is looking to diversify its investor base with this issue, which means attracting emerging market funds as well as other investors,” one official said.