The experts have emphasised that Lithuania's decision to issue a 20-year tranche EUR 750 million Eurobond was a bold step because other issuers in the Central and Eastern Europe recently did not offered long-term bonds to the market. At the same time, the move is weighed and shows investor confidence in Lithuania and allows the country to maximise on the low interest rate.
Lithuania borrowed the largest amount in the market in one issue – EUR 1.5 billion. For comparison, the emission issued in 2010 denominated in the United States dollar was worth EUR 1.45 billion. This was the first Eurobond issue after Lithuania adopted the euro.
Moreover, for the ten-year Eurobond worth EUR 750 million Lithuania will pay the lowest annual interest rate in history – 1.25%.
Lithuania has borrowed cheaper for ten years than Poland, Slovenia, Spain, Italy or Latvia. The latter borrowed at the annual interest of 1.375% while the yield stands at 1.449. Whereas Lithuania's ten-year Eurobond interest rate is 1.25% and the yield is 1.366%. For the twenty-year Eurobond of EUR 750 million Lithuania will pay the annual interest rate of 2.125%.
The twenty-year Eurobond issue is the longest term issue in the Central and Eastern Europe since March 2015 and only the second such issued in the region in 2015.
