UPDATE 1-Greece to open order books for three-year bond -sources

Written By Unknown on Rabu, 09 Juli 2014 | 18.12

Wed Jul 9, 2014 6:08am EDT

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ATHENS, July 9 (Reuters) - Greece will start taking orders from investors for a three-year bond later on Wednesday or on Thursday, two sources with knowledge of the matter told Reuters.

The sale would follow Athens's successful return to markets in April after a four-year exile, a signal that the country was emerging from a painful and protracted debt crisis and nearing an exit from its international bailout.

"The books are likely to open today (Wednesday) and at the latest, on Thursday," one of the sources said.

"We expect the issue of the three-year bond today or tomorrow. I think it will be a success. There is great interest in Greek assets abroad," a banker added.

A Greek official told Reuters in June that Athens was considering a sale before August of a bond with a maturity of three or seven years to raise 2 billion to 3 billion euros.

Despite the success of its April bond sale, Greece does not expect a quick shift towards covering all its funding needs in the markets. Officials have said one of the primary aims of its issuance plan is to correct a gap in the medium-term part of Greece's yield curve.

Athens has issued three-month and sic-month Treasury bills through the debt crisis and the five-year bond in April, but its debt maturities then jump to between 10 and 30 years.

Bailed out twice by the European Union and International Monetary Fund and reliant on aid to keep afloat, Greece has enjoyed an abrupt turnaround in investor sentiment as it steadies its finances and targets a return to economic growth this year. (Reporting by Lefteris Papadimas; Writing by Deepa Babington; Editing by Catherine Evans)

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