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Lithuania Successfully Raised EUR 500 Million in new Eurobonds

Date

2009 06 15

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Vilnius, June 15.  Lithuania has successfully issued a new EUR 500 million (LTL 1,726 billion) 9.375% 5-year Eurobond in the international capital markets.

“After the recent gloomy forecasts, news about and threats for the Baltic Region that have shaken the financial markets for the last several weeks, the successful issue of our securities in the international markets shows prevailing investor confidence in Lithuania and their approval of the austerity measures implemented by the Lithuanian Government,” said Minister of Finance Mr. Algirdas Šemeta.

The secondary market yield of the 2016 Lithuanian Eurobond on the day of pricing of the new issue was around 9.2- 9.8%, however, only small trades were done at these levels. For larger volumes, and in order to attract investors to the new issue, it was necessary to offer a slight premium to the yield quoted in the secondary market.

“The situation in the financial markets is not stable yet, and the yields expected by investors remain on a relatively high level, still, the fact that the Eurobond issue was possible is a very positive sign both for us and other Central and Eastern European countries. It is also important to emphasise, that this is a new cash injection into the Lithuanian economy, which is really needed at the current juncture in time,” stated the Minister of Finance.

The last time the Republic of Lithuania accessed the international capital markets was at the end of 2007.

 

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