Sorainen assisted the Lithuanian Ministry of Finance in issuing two (ten and thirty–year) Eurobonds and borrowing EUR 750 million and EUR 550 million accordingly.
The ten-year EUR 750 million Eurobond will have the lowest coupon in the country’s history at 0.95%. The Eurobond has been issued at a yield of 1.129% and an issue price equal to 98.316% of its face value. Settlement of the Eurobond will take place on 26 May 2017. The maturity date is 26 May 2027.
The thirty-year EUR 550 million Eurobond is the longest in the country’s history in terms of maturity. The bond has a 2.1% coupon. The Eurobond has been issued at a yield of 2.188% and an issue price equal to 98.079% of its face value. Settlement of the Eurobond will take place on 26 May 2017. The maturity date is 26 May 2047.
Comments Lithuanian Finance Minister Vilius Šapoka: “The decision to borrow long term was based on the favourable situation in international markets and on our intention to fix low rates of interest. Debt management strategy allowed us to exploit the demand for long term investments. The long-term borrowing will allow us to distribute debt repayment flows evenly and use attractive conditions of financing for a longer time.”
The transaction was lead-managed by BNP Paribas and JP Morgan.
Partner Tomas Kontautas and associate Laura Matukaitytë advised the client on Lithuanian law-related issues.