The Lebanese government has announced that it will be launching a $600-million Eurobond issue, with the purpose of transforming a portion of the country's internal debts into foreign debts.
Explaining the issue, Fuad Siniora, the Lebanese finance minister, said that the bond will be issued for a five-year term, at a 9.3-percent interest rate. The bond issue will be managed by the City Group, with the participation of Parisbas
Siniora noted that response on the part of the international investor community is as important as the proceeds raised by the bond issue, inasmuch as it will serve as an indicator of confidence abroad in the Lebanese economy.
Some $500 million of the capital raised will was to be used to cover debts due next April. Lebanon's general debts currently total at least $23.8 billion. Of these, $7.3 billion are foreign debts, and they include $1.4 billion in loans and eurobonds. — (Albawaba-MEBG)
© 2001 Mena Report (www.menareport.com )