We assisted the joint lead managers in a dual tranche Eurobond issue by the Republic of Lithuania, which borrowed EUR 1.5 billion in the international capital markets by issuing two Eurobond issues – a 10-year Eurobond of EUR 650 million face value and a 30-year Eurobond of EUR 850 million face value.
The decision to borrow for a longer period was made due to the favourable situation in the international financial markets, the objective being to manage risk properly and to fix low interest rates for a longer time.
10-year Eurobond – cheapest in Lithuania’s borrowing history
At annual interest of only 0.5 %, the 10-year Eurobond of EUR 650 million is the cheapest in Lithuania’s borrowing history. The bonds were issued with a yield of 0.603% and the issue price equalled 99.003 per cent of their face value.
30-year Eurobond issued for a second time
This is Lithuania’s second 30-year bond (face value EUR 850 million), at an annual interest rate of 1.625%. The bond yield is 1.732% and the issue price equal to 97.513% of face value.
More information here.
Transaction lead managers and our project team
The transaction was lead-managed by BNP Paribas and J.P. Morgan. Sorainen partner Tomas Kontautas with senior associates Agnė Sovaitė and Dalia Augaitė advised on Lithuanian law-related issues.
