We assisted the joint lead managers in a dual tranche Eurobond issue by the Republic of Lithuania, which borrowed EUR 2 billion in the international capital markets by issuing two Eurobond issues – a 5-year Eurobond of EUR 750 million face value and a 10-year Eurobond of EUR 1 billion 250 million face value. This record amount received for Eurobonds will be used to provide liquidity for the state treasury.
Borrowing in foreign markets is one of the directions of Lithuania‘s balanced borrowing
Says Vilius Šapoka, Lithuanian Minister of Finance: “Worldwide we are considered as a reliable and very responsible partner. This euro-denominated amount is the largest ever borrowed in the country’s history. Borrowing in foreign markets is one of the directions of our balanced borrowing. This year, we have managed to conclude contracts with international financial organizations for 1.5 billion; we have also borrowed nearly EUR 800 million in the domestic market.”
A coupon of 0.25% annual interest will be paid for the 5-year Eurobond of EUR 750 million face value. The Bonds have been issued at a yield of 0.345% and an issue price equal to 99.530% of face value.
Lithuania will pay 0.750% annual interest for the 10-year issue (EUR 1.25 billion face value). The Bonds have been issued at a yield of 0.829% and an issue price equal to 99.245% of face value.
Our services and the project 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.
