Lithuania borrowed 750 million euros in international capital markets on July 10, issuing a 30-year Eurobond, the Finance Ministry said.
The annual coupon – the annual interest rate the bondholders will receive – was set at 0.75%.
Previously, Lithuania issued Eurobonds of the same maturity in 2017, 2019 and 2020 with annual coupon rates of 2.1%, 1.625% and 0.5%, respectively.
“This is already the fourth issue of a 30-year maturity bond, which helped us fix a low interest rate for a long period. The spread above the mid-swaps, which together determine the yield of an issue, is only 55 basis points, that is, the lowest among Lithuanian bonds of the same maturity. Interest rates have been rising for some time, but we have taken the opportunity to fix interest rates below inflation,” Vice Minister of Finance Gediminas Norkunas says.
The proceeds of the issue will be used to finance anti-pandemic measures.
The Eurobonds have been issued at a yield of 0.889% and issue price equal to 96.354% of their face value. The settlement for the issue will take place on July 15. The Eurobonds will mature on July 15, 2051.
The transaction was lead-managed by banks Goldman Sachs and J.P. Morgan. (LRT/Business World Magazine)