Lithuania takes advantage of the low interest rate environment to borrow EUR 1.3 billion at favourable terms

2017 05 19
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Lithuania successfully issued two Eurobonds in the international capital markets today – EUR 750 million 10-year and EUR 550 million 30-year bonds.

„Lithuania has borrowed a large amount for a long duration by issuing a dual tranche Eurobond. The decision to borrow for such duration was made taking into account the favourable situation in the international financial markets and wish to lock into the low interest rates. Our borrowing strategy allowed us to be flexible to echo investors’ demand for the long duration. On the other hand such a decision helps us as well to achieve a smooth debt profile and make use of attractive borrowing conditions“, – Lithuanian Finance Minister Vilius Šapoka said. 

Ten-year EUR 750 million Eurobond will have the lowest coupon in the country’s history – 0.95 per cent. The Notes have been issued at a yield of 1.129 per cent and issue price equal to 98.316 per cent of their face value. The settlement of the Notes will take place on 26 May 2017. The Notes will mature on 26 May 2027.

Thirty-year EUR 550 million Eurobond with the 2.10 per cent. coupon will mark the longest duration to date for Lithuania. The Notes have been issued at a yield of 2.188 per cent and issue price equal to 98.079 per cent of their face value. The settlement of the Notes will take place on 26 May 2017. The Notes will mature on 26 May 2047.

The transaction was lead-managed by BNP Paribas and J.P. Morgan.

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