During this issuance, a risk premium of 60 basis points above the mid-swap interest rate was set. In 2020, when the 10-year Eurobond issue was last issued, this risk premium was equal to 90 basis points. This means that investors assess Lithuanian credit risk more favourably than two years ago.
‘As the policies of central banks change and interest rates rise, we took the opportunity to secure funding at favourable terms. Lithuania has offered investors the most attractive 10-year term and we hope to offer this issue again at domestic auctions’, vice-minister Gediminas Norkūnas said.
Proceeds of this issue will be used to finance this year's borrowing needs in order to mitigate the effects of Russia's military invasion to Ukraine and the resulting geopolitical and economic crisis, i.e. for measures dedicated to mitigate effects of rising inflation caused by the war, for social assistance, education and health services of Ukrainian refugees, for costs of critical infrastructure maintenance, caused by sanctions against Russia and Belarus, and for infrastructure projects co - financed by the EU.
The Eurobonds have been issued at a yield of 2.272 per cent and issue price equal to 98.698 per cent of their face value. The settlement for the issue will take place on 1 June 2022. The Eurobonds will mature on 1 June 2032.
The transaction was lead-managed by banks Barclays and BNP Paribas.
Important Information
Neither this announcement nor any copy of it may be taken or transmitted, directly or indirectly, into the United States, Australia, Canada or Japan or any other jurisdiction where to do so would be unlawful. This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase or subscribe nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or commitment therefore. The offer and the distribution of this announcement and other information in connection with the listing and offer in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
This announcement is not an offer for sale of any securities in the United States. Securities may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")) absent registration or an exemption from registration under the Securities Act. The Issuer has not registered and does not intend to register any portion of any offering in the United States or to conduct a public offering of any securities in the United States.
This announcement is directed only at (i) persons who are outside the United Kingdom or (ii) persons with professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the ‘Order’) or (iii) any other persons to whom it may lawfully be communicated, falling within Article 21 of the Financial Services and Markets Act (all such persons together being referred to as ‘relevant persons’). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.
In Member States of the European Economic Area and the United Kingdom, this announcement is directed only at persons who are "Qualified Investors" within the meaning of the Regulation (EU) 2017/1129.
