Lithuania has Successfully Issued EUR 600 Million Eurobonds


2007 10 18


Vilnius, October 18. On Wednesday Lithuania successfully issued EUR 600 million (LTL 2.072 billion) 10-year maturity Republic of Lithuania bonds in international markets. The issue bears 4.85 % coupon and will be redeemed in 2018.

The investment banks Societe Generale and UBS Investment Bank were lead managers of the transaction. The international credit rating agency Fitch Ratings assigned the rating A on this Eurobond issue, which is in line with Lithuania’s credit rating on long-term borrowing in foreign currency (A). The issue was priced at 13bp above MidSwap.

According to the Vice-minister of Finance V. Miltienis, “a huge interest of foreign investors in the placed Eurobond issue, especially knowing the current situation in financial markets, sounds pretty optimistic. It demonstrates that its presentation to potential investors which took place in September was a success. This Eurobond issue attracted various investors. Especially, the emphasis should be placed on an active participation of investors from France, what we did not have in previous times”.

The order book of the Republic of Lithuania Eurobond made up EUR 2.5 billion. A great demand allowed to decrease the risk premium of the issued securities and demonstrated their attractiveness among investors as well as their high quality.

30 % of this Eurobond issue was purchased by investors from Germany, 21 % - by investors from France, 14 % by investors from the United Kingdom and Ireland, 11 % by investors from Benelux, 5 % – by investors from Spain and Portugal, 19 % – by other investors.

The funds received will be used for the redemption of previously issued government securities and budget deficit financing.


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