Portugal raises 2.5 bn euros in short-term debt

Heavily indebted Portugal raised 2.5 billion euros ($3.32 billion) at markedly lower rates through short-term debt issues on Wednesday, as tension on sovereign debt markets eases early in the year.

The Portuguese Treasury raised one billion euros with 18-month bills at a rate of 1.963 percent, down sharply from 2.99 percent during the last similar issue in November, official data showed.

A 12-month issue attracted another 1.2 billion euros at 1.609 percent, down from 2.101 percent in October, while a three-month operation raised 300 million euros at 0.667 percent, down from 1.936 percent in November.

Demand for the Portuguese debt was particularly strong for the 18-month issue, with investors prepared to buy 2.7 times the amount on offer, compared with a ratio of 1.9 percent in November.

The Treasury has estimated its total net financing needs this year at 11.5 billion euros.

Portugal received a bailout worth 78 billion euros in May 2011 from the European Union and International Monetary Fund, and is trying to regain access to medium- and long-term debt markets by the end of this year.

— Dow Jones Newswires contributed to this story —