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Lithuania Raises $301 Million in Private Bond Sale for Ukio Cost

Lithuania raised 799 million litai ($301 million) in a private bond sale to help the state deposit- insurance fund meet obligations related to insolvent lender Ukio Bankas (UKB1L) AB.

The Finance Ministry, which placed the bonds today, also extended a loan for the same amount to the deposit insurer, ministry spokesman Vytautas Lenkutis said by phone in Vilnius, the capital. He declined to disclose the terms of the debt issue or say who bought it.

Lithuania’s central bank revoked Ukio’s license last month, saying the lender’s liabilities exceeded its assets. The government on Feb. 20 agreed to lend as much as 800 million litai to the deposit-insurance fund until Feb. 1, 2019, at an interest rate of 2.801 percent, to help it finance the transfer of some of Ukio’s assets to Siauliu Bankas AB.

Siauliu Bankas was the only buyer at the government’s debt sale, Baltic News Service reported, without saying where it got the information. Siauliu spokeswoman Daiva Griksiene didn’t immediately respond to calls or e-mails requesting comment.

To contact the reporter on this story: Bryan Bradley in Vilnius at bbradley13@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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