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Sorainen Lithuania Advises on Eurobonds Issuances

Sorainen Lithuania Advises on Eurobonds Issuances

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Sorainen has assisted the Lithuanian Ministry of Finance in issuing ten-year and thirty–year Eurobonds and borrowing EUR 750 million and EUR 550 million respectively.

The ten-year EUR 750 million Eurobond will have the lowest coupon in the country’s history at 0.95%. The Eurobond was issued at a yield of 1.129% and an issue price equal to 98.316% of its face value. Settlement of the Eurobond will take place on May 26, 2017. The maturity date is May 26, 2027.

The thirty-year EUR 550 million Eurobond is the longest in Lithuania's history in terms of maturity. The bond has a 2.1% coupon. The Eurobond was issued at a yield of 2.188% and an issue price equal to 98.079% of its face value. Settlement of the Eurobond will take place on May 26, 2017, and its maturity date is May 26, 2047.

According to Lithuanian Finance Minister Vilius Sapoka, “the decision to borrow long term was based on the favorable situation in international markets and on our intention to fix low rates of interest. Debt management strategy allowed us to exploit the demand for long term investments. The long-term borrowing will allow us to distribute debt repayment flows evenly and use attractive conditions of financing for a longer time.”

The transaction was lead-managed by BNP Paribas and JP Morgan.

Sorainen Partner Tomas Kontautas and Associate Laura Matukaityte advised the Ministry of Finance on Lithuanian law-related issues.

Sorainen did not reply to our inquiry about counsel for the banks on the issuance.

Editor's Note: After this article was published Ellex Valiunas announced that it had advised lead managers BNP Paribas and J.P. Morgan on the EUR 1.3 billion Eurobonds issuance. The firm announced that, at 0.95%, the ten-year EUR 750 million Eurobond has the lowest coupon in Lithuania's history. and that the thirty-year EUR 550 million Eurobond with the 2.10 percent coupon mark is the longest duration to date for the country.

The Ellex Valiunas team consisted of Partner Joana Baublyte-Kulviete, Senior Associate Laurynas Narvydas, and Associate Simona Kisunaite.

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