Financial Services, Lithuania, Loan

International Internet Magazine. Baltic States news & analytics Saturday, 08.08.2020, 09:29

Lithuania borrows EUR 1.75 bn

BC, Vilnius, 21.07.2020.Print version
Lithuania has on Tuesday borrowed 1.75 billion euros in the international capital markets by issuing a 30-year Eurobonds for 0.5 percent. The annual coupon is the lowest ever – it is more than three times smaller if compared to previous Eurobonds of the same maturity, the country's Finance Ministry said.

That's Lithuania's second issue this year after the government borrowed 2 bn euros in April.

"I am glad that not only we have reached an agreement among the EU member states that will allow for the transformation of Lithuania’s economy but also we took advantage of favorable market conditions to issue a Eurobond at record low yield. It confirms that Lithuania is considered to be a responsible and trustworthy partner," Finance Minister Vilius Sapoka said in a statement.

The funds will be used for general financing purposes, including the USD 1.35 bn Eurobond redemption in 2021.

The bonds have been issued at a yield of 0.637 per cent and issue price equal to 96.27 per cent of their face value. The settlement for the Bonds will take place on 28 July 2020. The Eurobonds will mature on 28 July 2050.

The transaction was lead-managed by BNP Paribas, Citi and Erste Group.

In late April, Lithuania issued two new Eurobonds and borrowed a total of 2 bn euros. The 5-year bonds attracted 750 million euros, and the 10-year bonds attracted 1.25 bn euros.

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