We represented banks-dealers in Lithuania’s borrowing of EUR 1.75 billion by issuing a 30-year Eurobond issue. According to the Ministry of Finance, the annual interest rate is lower than ever – more than three times lower than previously issued bonds of the same duration.
These funds will finance this year’s borrowing needs, including next year’s planned USD 1.35 billion redemption of the Eurobond issue.
Borrowing with the most favourable terms of all time
Says Minister of Finance Vilius Šapoka: “We are glad to have not only successfully reached an agreement between the EU member states to transform the country’s economy but also to have benefited from the exceedingly favourable conditions for issuing Eurobonds in the international capital markets. This only reaffirms that Lithuania is considered a very responsible and reliable partner”.
Previously, Lithuania has issued bonds of the same duration in 2017 and 2019 when the annual interest rates were 2.1% and 1.625%, respectively. In contrast, interest on the just recently issued EUR 1.75 billion nominal value 30-year Eurobond issue is only 0.5 %.
The Eurobonds were distributed at a yield of 0.637% and the issue price was 96.27% of their nominal value. The Eurobonds will be paid on 28 July 2020 and mature on 28 July 2050.
Our services and team
The transaction was lead-managed by BNP Paribas, Citi and Erste Group. Sorainen partner Tomas Kontautas with senior associates Dalia Augaitė and Agnė Sovaitė plus associate Rimantas Bendorius advised the banks on Lithuanian law-related issues.