The Treasury successfully completed international funding plan for 2018
THIS ANNOUNCEMENT IS NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, OR JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. THE DISTRIBUTION OF THIS ANNOUNCEMENT IN CERTAIN JURISDICTIONS MAY BE RESTRICTED BY LAW AND PERSONS INTO WHOSE POSSESSION THIS ANNOUNCEMENT COMES ARE REQUIRED BY THE REPUBLIC OF LATVIA TO INFORM THEMSELVES ABOUT AND TO OBSERVE ANY SUCH RESTRICTIONS
Thus a funding plan for borrowings in amount of 1 billion EUR in international markets for 2018 is successfully completed, and financing is ensured to cover not only this year requirement, but also for debt repayments in the first half of next year.
By carrying out a consistent approach for several years of prefunding, the Treasury has refinanced liabilities with historically low rates and ensured significant long-term savings of debt servicing costs, including 16 million EUR of budget expenditure in 2019 versus planned ones.
On September 5, Latvia reopened two of its outstanding Eurobonds – notes maturing May 30, 2028 with coupon 1.125% were increased by EUR 150 million at a yield of 0.997% and notes maturing February 15, 2047 with coupon 2.250% were increased by EUR 200 million at a yield of 1.861%.
Both Eurobond offerings were well received from around 70 investors, mainly from Europe. The Joint Lead Managers were Citi, JP Morgan and Natixis.
In May 2018, in co-operation with the same Joint Lead Managers, the Treasury simultaneously tapped the same two Eurobonds in the international financial markets for a total amount of EUR 650 million - a new 10-year Eurobond with a size of EUR 350 million and a TAP of 30-year in amount of EUR 300 million.