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On Wednesday, May 23, Latvia priced the Eurobond dual-tranche in the international capital markets in a total amount of EUR 650 million. 

A new 10-year Eurobond with a size of EUR 350 million was issued at a yield 1.148 %, as well as a 30-year Eurobond maturing in February 2047 was reopened at a yield 1.938 % increasing the outstanding amount by EUR 300 million.

By comparison, a 10-year Eurobond issued in 2008 in the amount of EUR 400 million with a yield 5.530% was redeemed on March 5, 2018, carrying an annual debt service cost of EUR 22 million. Taken into account still historically low euro interest rate environment, annual debt servicing cost for the new Eurobond with similar tenor, size and the interest rate fixed at today’s transaction will be decreased by EUR 17,5 million.

Eurobond offerings were well received from more than 80 investors, mainly from Europe.
The Joint Lead Managers were Citi, JP Morgan and Natixis.

Domestic debt securities redemptions for 5-year and 11-year T-bonds with coupon rates of 2.125% and 5.625% will follow later this year.

This announcement does not constitute an offer of, or an invitation by or on behalf of the Republic of Latvia to subscribe for or purchase securities in any jurisdiction. No action has been or will be taken by the government of the Republic of Latvia in any jurisdiction that would, or is intended to, permit a public offering of securities in any country or jurisdiction where action for that purpose is required. In particular, no securities have been or will be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered, sold or delivered within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and may only be offered and sold outside the United States in reliance on Regulation S under the Securities Act and otherwise in compliance with all applicable laws and regulations in each country or jurisdiction in which any such offer, sale or delivery of securities is made.
The announcement is only being distributed to and is only directed at: (a) persons who are outside the United Kingdom, (b) persons in the United Kingdom who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or (c) those persons in the United Kingdom to whom it may otherwise lawfully be distributed (all such persons together being referred to as “relevant persons”). In the United Kingdom, this announcement is directed only at relevant persons and must not be acted upon or relied upon by persons who are not relevant persons. In the United Kingdom, any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.