TGS Baltic and Dentons have advised the Ministry of Finance of the Republic of Lithuania on its EUR 750 million Eurobond issuance. Sorainen advised the lead managers Goldman Sachs and J.P. Morgan on the deal. Freshfields Bruckhaus Deringer reportedly also advised the banks.
The bonds have a 30-year maturity, bear a 0.75% annual interest, and are listed on the Luxembourg Stock Exchange. According to TGS Baltic, Lithuania had previously issued bonds of the same duration in 2017, 2019, and 2020, with annual interest rates amounting to 2.1%, 1.625%, and 0.5%, respectively.
"The interest rate risk premium above the average value of the swaps, which determines the profitability of this issue, is only 55 base points – i.e. lower than all previous issues of the same duration," said Deputy Minister of Finance Gediminas Norkunas. "Interest rates in the market have been rising for some time, but we have taken the opportunity to lock interest rates lower than inflation."
Last year, Sorainen, TGS Baltic, and Dentons have advised on two other Eurobond issuances by the Republic of Lithuania, raising EUR 2 billion in April (as reported by CEE Legal Matters on May 06, 2020) and EUR 1.75 billion in July (as reported on August 05, 2020).
Sorainen's team included Partner Tomas Kontautas, Counsel Indre Sceponiene, and Senior Associates Dalia Augaite and Agne Sovaite.
The TGS Baltic team included Partners Vidmantas Drizga and Robertas Degesys, Associate Partner Mantas Gofmanas, and Senior Associates Karolina Lapinskaite and Tadas Varapnickas.
The Dentons team included Partner Nick Hayday, Senior Associate Moeen Qayum, Associate Niharika Khimji, and Trainee Ed Varney.