Renewal of Euro-bond with 300 million EUR, debt since 2010

13/04/2015 00:00

The Government has officially started the procedures for renewing the
300 million EUR bond. After the invitation for the legal consultant, the
Ministry of Finances has published the request for the banks that will
lead the process, by marketing Albania in the international markets to
get as many investors as possible.

The 300 million EUR that the government aims to receive through the bond is not a new debt, but a renewal of that of 2010, since that debt had a term of five years and expires this year.

In that time, the issuing process of the Euro-bond was led by two international giants, Deutsche Bank and JP Morgan. This was the first time in history that Albania was entering the international markets, and the annual interest rate was at 7.5%.

But the conditions of the financial markets were harder from what it is now. For this reason, and due to the trust that comes from the agreement with the International Monetary Fund, the government hopes to receive lower interests.

A few days ago, the Ministry of Finances contracted 250 million EUR of debt supported by a World Bank grant. The total interest of the loan was 2.5%, including what is paid to the World Bank for the guarantee.

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