Latvia borrows EUR 1.25 billion from international financial markets

RIGA - Latvia has borrowed EUR 1.25 billion from international financial markets, according to information published by the Treasury.

On Thursday, September 25, the Treasury priced 10-year Eurobonds on behalf of Latvia on the international financial markets, raising EUR 1.25 billion with a yield of 3.583 percent and a fixed coupon rate of 3.5 percent.

Latvian government securities have been purchased by around 70 investors from various European countries, including the UK, Germany, Spain and Benelux.

Total demand for Latvian Eurobonds has exceeded EUR 2.5 billion.

Deutsche Bank, Erste Group and Goldman Sachs Bank Europe were the lead banks of the issue.

Latvia previously borrowed on the international financial markets in May 2025. On May 14 this year, the Treasury issued a five-year Eurobond on the international financial markets, raising EUR 1 billion at a yield of 2.971 percent and fixing the coupon rate at 2.875 percent. The Eurobond matures on May 21, 2030.

The Treasury informed LETA that by raising resources on the financial markets, including through the issuance of these securities, the Treasury has already fulfilled its borrowing plan, which is set at EUR 3.6 billion for this year, by 90 percent. The funds provided by the borrowings are mainly used to repay the public debt and to finance the public deficit.

The total repayment of public debt in 2025 is EUR 2.127 billion. To date, EUR 1.795 billion of debt has been repaid, including the EUR 1.11 billion of 10-year Eurobonds issued in 2015, which were redeemed on September 23.

Investor demand for the Latvian debt issuance was good, more than doubling the issue size, the Treasury said.

The Treasury also considers the bond issue to be beneficial, as it was carried out at a lower interest rate than Lithuania's Eurobond issue of a similar maturity in early September at an interest rate of 3.662 percent.

Latvia's public debt will reach EUR 20.5 billion at the end of 2025, or 49 percent of gross domestic product, and remains among the lowest in the euro area and the EU, the Treasury said.