Lithuania has borrowed EUR 1.5 billion by issuing a dual tranche Eurobond


2015 10 15


Vilnius, October 15. Lithuania successfully issued two (10– and 20–year) Eurobonds EUR 750 million each in the international capital markets today, thus creating a new milestone in the country‘s borrowing history.

„Lithuania has borrowed a large amount for a long duration by issuing a dual tranche Eurobond for the first time. The decision reflected investors’ demand and our borrowing strategy. The long duration will allow us to achieve a smooth debt profile and lock into low interest rates for a longer period. Low interest rates will help to refinance old debts and to redirect savings on interest to public needs“, – Lithuanian Finance Minister Rimantas Šadžius said. 

Ten-year EUR 750 million Eurobond will have the lowest coupon in the country’s history – 1.25 per cent. It will also be the largest among Lithuania’s Eurobonds of such duration in the euro market (previously the largest amount of Eurobond issue was 600 million euros). The Notes have been issued at a yield of 1.366 per cent and issue price equal to 98.923 per cent of their face value. The settlement of the Notes will take place on 22 October 2015. The Notes will mature on 22 October 2025.

Twenty-year EUR 750 million Eurobond with the 2.125 coupon will mark the first Lithuania’s Eurobond issue and the second issue among the Government Securities of such duration*. The Notes have been issued at a yield of 2.158 per cent and issue price equal to 99.469 per cent of their face value. The settlement of the Notes will take place on 22 October 2015. The Notes will mature on 22 October 2035.

Proceeds from the offering will be used for the redemption of EUR 1 billion Eurobond due 10 February 2016, as well as for general budgetary purposes.

The transaction was lead-managed by Barclays, BNP Paribas and HSBC.

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* The Republic of Lithuania issued 20-year EUR 185 million registered notes in the German market (Namensschuldverschreibung) with a coupon set at 3.43 per cent in May 2014.

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