Sunday, 20 January 2019

Lebanon to issue $2bn euro bonds

euro

BEIRUT: Lebanon plans to sell up to $2 billion of new Eurobonds part of a debt-swap aimed at reducing servicing costs, Central Bank Governor Riad Salameh announced during an interview with Bloomberg.

Salameh, who has steered the financial sector through repeated upheavals since taking the helm at the Banque Du Liban in 1993, said the central bank would give the finance ministry local-currency Treasury bills at low-interest rates in return for dollar-denominated Eurobonds by the end of this month, in a transaction worth $5.5 billion to $6 billion. It would sell on $2 billion worth.

He stressed the importance of the Eurobond and said that the Eurobond is “undervalued” by the government as the government does not “intend to make new issues for the market.” However, the central bank intends to sell not greater than $2 billion in Eurobonds in the next 12 months.

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