DNB and HSBC successfully placed government Eurobond issue

VILNIUS. DNB Bankas, part of Norway's largest financial services group, together with HSBC bank, have successfully placed a benchmark six year euro denominated issue of Lithuania’s sovereign bonds at par value of EUR 400 million (LTL 1.38 billion).

This has been Lithuania’s second sovereign bond issue this year and DNB has become the country's first bank mandated as joint lead manager for a global placement. The bond issue will tap up the existing issue due in February 2018, currently yielding about 4 pct. on the secondary market.

"The fact that the yield for the euro denominated Lithuania’s sovereign bonds was below 5 percent for the first time after more than four years break clearly indicates that the participants of international capital markets feel confident about the country's sustainable economic and fiscal policies,” says Mindaugas Tutlys, Manager of DNB Markets in Lithuania.

According to M. Tutlys, the government’s choice to issue the bond in euros attracted active participation from local investors which further strengthened the demand. The issue was more than two times oversubscribed.

"The government’s sustained efforts to better utilize the local investor base helps to ensure higher liquidity of the securities and also provides more fiscal stability," - says M.Tutlys.

DNB Bankas is one of the most active distributors of sovereign debt in the Baltics. In 2011, the bank's turnover from trade in governmental securities amounted to LTL 4.8 billion (EUR 1.4 billion).

DNB Bankas is a member of the largest Norway's financial group. The Bank provides banking services to over 700 thousand individual and corporate customers in Lithuania.