Lebanese Government Launches $1bn Eurobond
The Lebanese government of prime minister Rafik Hariri Friday launched a five-year $1 billion eurobond, the single biggest issue in Lebanon’s history, The daily Star reported Saturday.
The move reflects the government’s determination to gradually replace the costly domestic debt with the less expensive eurobonds, the paper said, noting that the interest rates on the two-year government T-bills is 14.14 percent.
The issue, which was originally set at $600 million on March 30th by finance minister Fouad Siniora, rose to $1 billion following demand from local banks and foreign investors.
This eurobond will partly replace the maturing $500 million issue.
The Finance Ministry said that the issue will carry a coupon of 9.87 percent and a yield of also 9.87 percent.
With this new issue, the government’s net public debt will rise by $500 million to more than $24 billion – Albawaba.com