During the new issuance, a risk premium of 95 basis points above the mid-swap interest rate was set, which is 40 basis points less than the issue of the same duration last October.
”This means that Lithuania's credit risk is perceived by investors significantly more favourably. Lithuania took advantage of the favourable situation in the financial markets and fulfilled this year's borrowing plan by distributing Eurobonds in foreign markets," says Minister of Finance Gintarė Skaistė.
Lithuania offered investors the most attractive - 10-year - issue. The demand was almost 4 times higher than the borrowing requirement.
The new 10-year Eurobond issue was issued at a yield of 3.953 %; the issue price equals 99.366 % of their face value. The annual interest rate of 3.875 % will be paid on this issue.
The Eurobonds will be settled on 14 June 2023 and redeemed on 14 June 2033.
Lithuania borrowed EUR 1.25 billion from 131 investors. Most of the investments came from the following countries: the United Kingdom (18.7%), Germany (11.4%), France (8.9%), Switzerland (6.6%) and others.
According to the type of investors, the majority of them were asset managers (43.8%), banks (21.8%), insurance and pension companies (15.9%), central banks or other official institutions (9.8%). ), etc.
The transaction was lead-managed by banks Citi and Société Générale.
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