A new series of Treasury Bonds with Variable Income (OTRV), featuring interest payments in January and July each year, is being issued starting today and running through July 15, according to information provided by IGCP.
A leaflet published by the Treasury and Public Debt Management Agency (IGCP) states that the “OTRV July 2031 are offered through a public subscription open to the general public and a public exchange offer targeting ‘OTRV July 2025’, with semi-annual and subsequently paid interest, on January 18 and July 18 each year.”
These interest payments are “calculated at a variable interest rate equal to the 6-month Euribor plus 0.25%, with the principal being reimbursed on July 18, 2031.”
The OTRV are “securities issued by the Portuguese Republic as both issuer and offeror under the Subscription and Exchange Offer, in book-entry and bearer form, denominated in euros with a unit nominal value of 1,000 euros and an initial aggregate nominal value of up to 1,000,000,000 euros [one billion euros], which can be increased, at the issuer’s option, until July 10, 2025,” it was explained.
The subscription price is thus one thousand euros for each OTRV July 2031, while the consideration for the exchange of each OTRV July 2025 is one OTRV July 2031.
“On the issue and settlement date of the Offers, accrued interest from January 23, 2025, will also be paid on the OTRV July 2025 accepted for exchange,” it was noted.
