Treasury raises another EUR 1 billion in international financial markets

  • 2020-04-06
  • LETA/TBT Staff

RIGA - The Treasury has raised another EUR 1 billion in international markets as it continued to boost its financial resources, LETA was told at the Finance Ministry.

On Monday, the Treasury raised EUR 1 billion by placing a new three-year bond issue, maturing in 2023, with a 0.209 percent yield rate and a 0.125 coupon.  

"The Treasury today managed to make a successful deal in international financial markets, thus increasing government finances for further measures to stimulate the economy and support residents in order to overcome the impact from the Covid-19 crisis," said Finance Minister Janis Reirs (New Unity). 

The Latvian bonds were bought by investors mainly from European countries, for instance, asset management companies and banks from Germany, Austria, France, the UK and Scandinavia. The investors' total demand for the bonds exceeded EUR 1.4 billion. The bond issue was arranged by Barclays, J.P. Morgan and Societe General. 

As reported, the government has so far earmarked nearly EUR 3 billion for the mitigation of the negative impact from the Covid-19 pandemic.