Latvia covers 2017 borrowing with 30-year bond

Latvia went to the financial markets February 9 and by the end of the day had collected €650 million with the issue of a 30-year Eurobond, the State Treasury said February 10.

"On Thursday February 9, Latvia successfully priced dual-tranche Eurobonds in the international capital markets in an aggregate amount of €650 million, covering most of Latvia’s financing requirements for 2017," a statement said.

The 30-year Eurobonds represent the longest tenor ever issued by Latvia.

The 30-year tranche was priced at a coupon of 2.250% (yield 2.330%), in a new benchmark issue size of €500 million.

Simultaneously, Latvia tapped its 0.375% Eurobonds maturing October 7, 2026, increasing the outstanding amount of these bonds by €150 million at a yield of 1.062%.

Demand for Latvia’s Eurobonds exceeded issue size by 1.6 times in the case of the 30-year Eurobonds and by 2.8 times in the case of the tap, with investors clearly keen to take advantage of historically low interest rates.

The Eurobonds were well received by approximately 50 investors for each tranche. Investors were mainly from Europe (Germany, Austria, United Kingdom and other countries).

The Joint Lead Managers were Deutsche Bank, Goldman Sachs and Société Générale.

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