Greece

The European Bank for Reconstruction and Development (EBRD) has begun flexing its muscles in Greece’s private sector after the country was approved as an EBRD recipient country last year by arranging a partly syndicated loan for Hellenic Telecommunications Organisation (OTE).

A group of lenders are working on a long term loan for the privatisation of 14 Greek airports. Greece’s Alpha Bank is the advisor for the financing, which includes a €820m clip, according to a banker close to the deal.

Piraeus Bank has become the third of the four largest Greek banks to update its covered bond programme in what is likely to be a prelude to issuance.

Greek government bonds were the strongest performer in the eurozone on Thursday, with yields plunging after the European Central Bank reinstated a waiver that allows the use of the paper as collateral in monetary policy operations.

The European Central Bank has said it will allow Greek banks to participate in its regular refinancing operations, potentially slashing their funding costs.

The European Central Bank has said it will allow Greek banks to participate in its regular refinancing operations, potentially slashing their funding costs.

Forthnet, an unrated Greek telecom company, on Wednesday sealed with bank lenders a debt restructuring plan that it has been negotiating since April.

Titan Cement is set to become the first high yield issuer of the year from Greece, after more than six months without issuance from the country.

One of the major political risks facing the public sector borrowing markets this summer was solved overnight on Tuesday, after the Eurogroup agreed the release of €10.3bn of bail-out funds to Greece. Officials in the country are also optimistic that its debt could benefit from central bank buying as soon as next year, writes Lewis McLellan.

Monday night’s three equity block trades in Europe all led to decent trading in the stocks on Tuesday. They included CVC’s exit from Evonik Industries – scooped on a sole basis by JP Morgan, though Bank of America Merrill Lynch has worked on most of these deals.

Spain has nipped in ahead of its eurozone periphery peer Italy, mandating banks for a debut 50 year euro benchmark on the same day that the Community of Madrid had a strong showing at the short end and Greek yields rallied across the curve.

The latest standoff between the European Union and the Greek government could make conditions difficult for euro public sector issuance, SSA bankers fear.