Lithuania Sells $234 Million of Debt in Private Placement

Lithuania sold 600 million litai ($234 million) in a private placement, increasing the Baltic nation’s proceeds from debt sales at home and abroad this week to about $800 million.

The government placed the litai-denominated bonds this week, Vytautas Lenkutis, a spokesman at the Finance Ministry in the capital, Vilnius, said today by phone, declining to give more details.

Newspaper Verslo Zinios reported on Jan. 10 the government was considering placing debt with administrators for bankrupt lender Bankas Snoras AB so money recovered for creditors could be invested. Snoras plans to invest about 600 million litai in government securities, Tomas Vaisvila, a spokesman for the lender, said in a phone interview today.

Lithuania raised 400 million euros ($539 million) in a tap of its 2018 euro bonds yesterday, at a price to yield 2.631 percent. It also sold 60 million litai of January 2016 bonds at an auction with an average yield of 1.95 percent.

Lithuania’s borrowing costs have plunged as it enjoys one of Europe’s fastest economic growth rates and is reducing its budget deficit to qualify for euro adoption as soon as 2015. The government needs to repay a 1 billion-euro bond on March 5 that it first issued in 2003.

Yields on the 2018 bonds rose to 2.675 percent in trading today, having been more than 5 percent a year ago, according to data compiled by Bloomberg.

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