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Portugal raises US$4 billion in dollar-denominated bonds

Portugal raised $4 billion (2.9 billion euros) on Wednesday in its first sale of dollar-denominated bonds in four years, luring strong investor interest less than two months after emerging from a 78-billion-euro international bailout.

LISBON: Portugal raised $4 billion (2.9 billion euros) on Wednesday in its first sale of dollar-denominated bonds in four years, luring strong investor interest less than two months after emerging from a 78-billion-euro international bailout.

Demand for the bonds exceeded $10 billion, said a source at the Portuguese Treasury and Debt Management Agency, which this month expressed its interest in diversifying its sources of financing.

Portugal offered a yield, or annual return to investors, of 5.15 per cent, the source said.

The bond sale was handled via a syndicate of banks made up of Barclays, Danske Bank, HSBC and Societe Generale.

Portugal last placed dollar-dominated bonds in March 2010 when it raised $1.25 billion in a sale of five-year debt.

Portugal emerged on May 17 from a three-year bailout programme supervised by the European Union and International Monetary Fund.

The centre-right government aims to lower the country's annual public deficit to the equivalent of 4.0 per cent of total economic output by the end of this year from 4.9 per cent in 2013.

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