EU – Baltic States, Financial Services, Investments, Latvia

According to the Finance Ministry, the issue was oversubscribed more than three times. The issue primarily attracted investors from Europe – Germany, Austria, Switzerland, France, Great Britain, Baltic countries and others, also Asia and other regions.

The resources attracted due to the bond issue will be used for covering a general need for financing, including for the planned repayment of a loan to the European Commission next January in an amount of EUR 1.2 billion. A borrowing rate of this loan was 3.125%, which is higher than the rate of resources attracted due to the issue of bonds.

"This is already the second successful issue of bonds in the euro currency for Latvia this year, and this testifies the ability of our country to incorporate successfully into international financial markets as well as acknowledges major interest of foreign investors. The transaction was performed at a very advantageous moment as Latvia has become a euro area member state, but the euro area has returned to growth. This means that investors' interest and trust in Latvian economy increases, and the issue of bonds will provide resources allowing us to re-finance the European Commission's loan next year," points out Finance Minister Andris Vilks.

The issue was organized in accordance with Latvia's borrowing strategy and benefitted from current favorable conditions in financial markets.

Latvia's previous bonds in the international markets were issued this past January. That borrowing totaled EUR 1 billion with a coupon of 2.625% (yield rate of 2.815%).