TIRANA (Albania), July 2 (SeeNews) –The government has launched a procedure for issuing a new Eurobond, aiming to refinance the country’s external debt and decrease pressure on the domestic financial market, Prime Minister Edi Rama said.
"We repaid a series of debt obligations inherited from the previous government and now we are preparing to come up with another Eurobond,” Rama said on Sunday in a press release without elaborating.
In May, the government approved a decision that paves the way for the finance ministry to initiate a procedure for Eurobond issuance.
The government is planning a five-year Eurobond issue of up to 500 million euro ($584 million), according to Albanian media reports.
In 2015, Albania issued a 450 million euro five-year Eurobond carrying a coupon of 5.75%, down from 7.5% in its first 300 million euro Eurobond issued in 2010.
Legal changes approved in 2015 allow the finance minister to issue debt within the limits set by the government budget without prior approval from the parliament. The changes aim to accelerate borrowing procedures in order to secure lower interest rates.
Deutsche Bank and JP Morgan Chase acted as joint lead managers of Albania’s previous two Eurobonds.
($ = 0.85579 euro)