Lebanon’s debt oversubscribed for 2015. Showing sign of continuous confidence by investors

Lebanon’s debt
oversubscribed for 2015
Showing sign of continuous
confidence by investors
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The Ministry of Finance (MoF) announced today that it has succeeded in covering the full debt duties in foreign currencies for 2015 and part of another debt to be settled for 2016, through a Eurobond issue valued at $1.6 billion.

“The $1.3 billion sovereign Eurobond issue aims at financing debt duties in foreign currencies for the second half of 2015. A swap for bonds maturing on 19/01/2016 has also been executed at a value of $318 million,” a statement by the MoF said.

“The current Eurobond issue has been successful,” said Wassim Mansouri, Advisor to the Minister of Finance. “The MoF is always finding a way to maintain the country’s commitment to pay its duties on schedule, but the problem is that the political dispute is weighing heavily on the economy. This could increasingly hamper the reputation and sovereign outlook of Lebanon,” he said. Mansouri urged Parliament and the Government to meet in order to approve laws and regulations.

The total value of the $1.6 billion Eurobond issue was divided into three categories. The first amounted to $500 million, maturing in 2024, with an interest rate of 6.25 percent. The second equals $500 million, maturing in 2028, with an interest rate of 6.65 percent. The third is for $600 million, maturing in 2035, with an interest rate of 7.05 percent.

The Eurobond issue was oversubscribed by 113 percent. Total foreign banks and financial institutions subscriptions represented ten percent of the total, a sign of continuous confidence and international demand for Lebanese bonds, according to the statement.

“Foreign investors’ appetites have always been at this average, while banks have the largest share of demand,” said Mansouri.

The MoF said that the swap rate reached 42 percent of the overall bonds due for 19/01/2016.
Reported by Leila Rahbani
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Date Posted: Nov 02, 2015