0.5% for 30 years – Lithuania borrows in the international markets at record low rate

Date

2020 07 21

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Today, Lithuania borrowed EUR 1.75 bn in the international capital markets by issuing a 30-year Eurobond. The annual coupon is the lowest ever – it is more than three times smaller if compared to previous Eurobonds of the same maturity.

‘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 favourable market conditions to issue a Eurobond at record low yield. It confirms that Lithuania is considered to be a responsible and trustworthy partner’, Vilius Šapoka, the Minister of Finance, said.

Previously Lithuania issued Eurobonds of this maturity in 2017 and 2019 and their annual coupons were set at 2.1% and 1.625%, respectively. Lithuania will pay 0.5% annual coupon for the EUR 1.75bn 30–year Eurobond issued today.

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.

 

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