During the new issuance, a risk premium of 120 basis points above the mid-swap interest rate was set, and for the issuance tapped, a risk premium of 135 basis points above the mid-swap interest rate was set.
“As interest rates continued to rise, Lithuania took advantage of the temporarily stable situation in the financial markets and completed this year's foreign borrowing programme. We planned to borrow up to EUR 1.25 billion, since the demand was strong for issues of both durations, we borrowed EUR 1.2 billion,“ Vice-Minister of Finance Gediminas Norkūnas said.
The new 5.5-year Eurobonds were issued at a yield of 4.283 per cent and issue price equal to 99,261 per cent of their face value. The annual coupon was set at 4.125 per cent. The settlement for the issue will take place on 25 October 2022, and the Eurobonds will mature on 25 April 2028.
The 10-year Eurobonds were tapped at a yield of 4.514 per cent and issue price equal to 81,705 per cent of their face value. The annual coupon was set at 2.125 per cent. The settlement for the issue will take place on 25 October 2022, and the Eurobonds will mature on 1 June 2032.
The transaction was lead-managed by banks Deutsche Bank and J.P. Morgan.
