A 5 basis point lower risk premium was recorded at the time of distribution of the new issue as compared to the issue with the same maturity issued in June last year – now it reaches 90 basis points above the average swap rate.
“Lithuania successfully started its programme for borrowing on foreign financial markets and under favourable conditions secured a significant share of the amount foreseen to borrow abroad for this year. We welcome the continued decline in credit risk and enduring confidence of investors”, says Rasa Kavolyte, Director of the State Treasury Department of the Ministry of Finance.
Lithuania has offered investors the most attractive – a 10-year issue. The demand was 2.7 times higher than the borrowing requirement.
The new 10-year Eurobond issue was distributed at a yield of 3.607 %, with an issue price equal to 99.115 % of their face value. The annual interest rate of 3.500 % will be paid on this issue.
The Eurobonds will be settled on 13 February 2024 and redeemed on 13 February 2034.
The banks BNP Paribas, Erste Group Bank and JP Morganwere selected as lead-managers. While SEB Bank has been given the role of co-lead manager.
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.
