BDAR
gdpr

Lithuania issues Eurobond at the lowest yield in the history of the country

Date

2014 10 22

Rating
0
centai.jpg

Vilnius, October 22. Lithuania successfully issued a twelve-year EUR 1 billion Eurobond in the international capital markets today and will pay the lowest coupon in the country’s history – 2.125 per cent in EUR market.

According to the Finance Minister Rimantas Šadžius, such result reflects investors’ positive view on Lithuania, which is already treated as a high grade euro zone country. “This Eurobond is a testament to financial markets’ appreciation of Government’s fiscal policy and Lithuania’s economic outlook, particularly the upcoming Eurozone membership. There are more than two months left till Lithuania joins the euro area, however, we see the benefit of decreasing borrowing costs already”, Lithuania’s Finance Minister said.

The Eurobond will not only be the lowest in terms of coupon, but also the longest in terms of maturity (previously the longest Eurobond issued by Lithuania was 10 years) and largest in terms of amount in the euro market (previously the largest amount of Eurobond issue was 600 million euros).

Lithuania has successfully priced an offering of EUR 1 billion 2.125 per cent Notes due 2026 (the “Notes”). The Notes have been issued at a yield of 2.322 per cent and issue price equal to 97.957 per cent of their face value.

The settlement of the Notes will take place on 29 October 2014. The Notes mature on 29 October 2026.

Proceeds from the offering will be used for general budgetary purposes and refinancing of existing debt obligations, including the redemption of USD 1.5 billion Eurobonds due 15 January 2015.

The transaction was lead-managed by HSBC Bank plc, J.P Morgan Securities plc and Société Générale.

Public Relations Office
Phone: +370 5 2390 187
www.finmin.lt

Copies of this announcement are not being made and may not be distributed or sent into the United States, the United Kingdom, Canada, Australia or Japan.

This announcement is not an offer for sale of securities in the United States.  The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. The issuer does not intend to register any portion of the offering of the securities in the United States or to conduct a public offering of the securities in the United States.

This communication does not constitute an offer of the securities to the public in the United Kingdom.  No prospectus has been or will be approved in the United Kingdom in respect of the securities.   This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”).  Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons.  Any person who is not a Relevant Person should not act or rely on this document or any of its contents.