Greece is preparing a new diplomatic and financial push in Asia, with Dimitris Tsakonas, head of the Public Debt Management Agency, scheduled to visit Tokyo, Beijing and Singapore from November 16 to 22 for meetings with major institutional investors.
The trip comes at a moment when Greek sovereign debt has re-entered the global spotlight: after regaining investment-grade status, the country is once again considered a credible and attractive destination for international capital. Asian investors in particular have shown fresh interest, though some are waiting for an additional upgrade to “AA-” before committing funds to Greek securities.
Greece’s relationship with Asian capital markets is not new. Over the past three decades, the country has repeatedly issued so-called “samurai bonds” — debt securities denominated in Japanese yen. The practice dates to 1995, years before Greece adopted the euro and even before the public debt agency existed.
At that time, issuance was handled by the Bank of Greece’s international department, which saw the yen market as an opportunity to secure cheaper funding than was available in drachmas, dollars or Deutsche marks. Tapping foreign debt markets was also viewed as part of Greece’s path toward deeper European integration and eventual membership in the eurozone.
The history of samurai bonds also includes a notable chapter during Greece’s 2012 Private Sector Involvement (PSI) restructuring, when most Greek government bonds were subject to significant losses.
Owing to specific legal and timing constraints in Japan, some samurai bonds were excluded from the haircut and were ultimately repaid in full in 2015. Others, however, that contained collective action clauses — provisions that allow a restructuring to proceed if a majority of bondholders agree — did take losses along with the rest.
For Japanese investors, the PSI episode left a mixed impression — what locals might describe as amazu soosu, or sweet-and-sour.
