On March 10, the State Treasury issued ten-year bonds on financial markets on Latvia’s behalf, raising financing of EUR 1.25 billion.
The ten-year bonds have profitability of 0.105% and a coupon rate 0.000%, which is historically the lowest level of long-term bond profitability and coupon level achieved for Latvian state bond issue on international financial markets, according to the State Treasury.
The biggest accomplishment with investor demand both numerically and volume-wise is the interest from more than 100 investors. Their combined demand volume reached EUR 2.8 billion.
The issued bonds were mostly procured by European asset managers and banks from Germany, France and Britain.
Finance Minister Janis Reirs comments: “The State Treasury’s performed borrowing deal has allowed us to attract long-term resources under very good economic conditions. This deal is the first step towards attracting necessary funding on international markets, because we need to secure resources for both battling Covid-19 and supporting the economy, as well as financing other needs of the budget and state debt.”
The leading banks in the bond issue were Barclays, BNP Paribas and Credit Agricole CIB. (BNN/Business World Magazine)