BDAR

Lithuania has issued a 30-year Eurobond

Date

2021 07 08

Rating
0
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Today Lithuania borrowed EUR 750 million in the international capital markets by issuing a 30-year Eurobond. The annual coupon was set at 0.75 per cent.

Previously Lithuania had issued Eurobonds of the same maturity in 2017, 2019 and 2020 with annual coupon rates at 2.1 per cent, 1.625 per cent and 0.5 per cent, respectively.

‘This is already the fourth issue of a 30-year maturity, which helped us to fix a low interest rate for a long period. The spread above the mid-swaps, which together determine the yield of an issue, is only 55 basis points, i.e. the lowest among Lithuanian bonds of the same maturity. Interest rates have been rising for some time, but we have taken the opportunity to fix interest rates lower than inflation,’ Mr Gediminas Norkūnas, Vice-Minister of Finance, said.

The proceeds of this issue will be used to finance the borrowing needs for this year, which is to a large extent caused by anti-pandemic measures.

The Eurobonds have been issued at a yield of 0.889 per cent and issue price equal to 96.354 per cent of their face value. The settlement for the issue will take place on 15 July 2021. The Eurobonds will mature on 15 July 2051.

The transaction was lead-managed by banks Goldman Sachs and J.P. Morgan.

 

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