Lebanon launches largest Eurobond issue in its history

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Wednesday 25 Feb 2015 - 15:04 Makkah mean time-6-5-1436 Minister Ali Hassan Khalil speaks during a news conference in Beirut on Tuesday Pic from (The Daily Star ) Beirut, (IINA) - Lebanon launched on Tuesday a $2.2 billion sovereign Eurobond, the largest single issue in the history of the country, Finance Minister Ali Hassan Khalil said, The Lebanese Daily Star newspaper reported. Khalil said the Finance Ministry was seeking to tap the market for $4.4 billion in Eurobond sales to meet all its needs for 2015. “We have raised $2.2 billion but based on the authorization from Parliament, we are only entitled to issue $2.5 billion this year. We have the right for an additional $300 million, but this amount is not sufficient to meet the full needs of the state,” the minister added. Khalil disclosed that the $2.2 billion sale, the largest foreign currency bond sale in Lebanon’s history, was $4.9 billion or 233 percent oversubscribed. The issuance was divided into two categories: the first is for $800 million with a 10-year maturity period and 6.2 percent interest, and the second is for $1.4 billion with a 15-year maturity period and 6.65 percent interest. Lebanon has been tapping local and international markets since 1996 to finance the public debt and cover government expenditures. Khalil said that despite its current political difficulties, Lebanon still earns the confidence and respect of the world and the best example of this trust is the foreign participation in the new Eurobond issue. It is noteworthy that Lebanon's economy is expected to grow up by 2.5 percent in 2015, Khalil reported during the news conference. SM/IINA