Lithuania to redeem its biggest bond issue yet

The issue will be the largest to be redeemed by the country since restoration of independence, Finance Minister Ingrida Šimonyte has said. Lithuania’s first US dollar-denominated Eurobond was issued in December 1995.

Rasa Jakilaitienė, aide to finance minister, told BNS that Lithuania paid 1.28 billion litas (EUR 371 m) in interest on the maturing 1 billion euro bond over ten years.

Back in 2002, the government issued 400 million euros bond, which was increased by 600 million euros in 2006. The bond carries the annual interest of 5.875 percent.

In 2013 Lithuania will have to redeem one more 1 billion euros bond issue carrying the interest of 4.5 percent.

The government issued a 400 million euros bond in mid-April and a 1.5 billion US dollar bond in late January while getting ready to redeem the 1 billion euros bond in May. Jakilaitienė told BNS that the receipts on the latest issue were transferred to the treasury account a week ago.

Lithuania would have to pay back the debts of 8.331 billion litas (EUR 2.4 b), including 2.294 billion litas in interest, to all creditors this year, Jakilaitienė said.

Lithuania will need to borrow 10.3 billion litas this year and hopes to raise almost two-thirds of that amount on international markets.