Of the 4 billion ALL that had been the amount announced for financing by the Albanian government, in the auctions there were presented total requests for only 2.22 billion ALL, while the Ministry of Finance and Economy accepted about 2.12 billion ALL. The ministry rejected claims of up to 8.05%.

The maximum yield received at the auction reached 7.98%, while the average yield reached 7.69%.

According to the Bank of Albania, the increase in the average yield of 5-year bonds was influenced by the increase in the basic interest rate.

In the March-November period, the Bank of Albania increased the base interest rate five times up to 2.25%. The 5-year bonds are part of the reference securities project, which the Ministry of Finance develops in cooperation with five commercial banks in the country. Participation in auctions of reference titles can only take place through the banks participating in the project, which have the title of Market Developers. /j.p/p.s./

The Bank of Albania reported that in the last auction held early this month, the government managed to get a fund of 6.8 billion lekë for the treasury bills, while the amount of requests submitted in the auction was about 8.9 billion lekë.

The Bank data showed that 12-month bonds were issued at interest rates of 1.63%, from 1.71% in the previous auction./p.s./

Their monthly dynamics show that yields have increased volatility mainly to bonds of short-term maturity.

Yields on 5- or 7-year bonds, whose performance has been more uniform, have been characterized by minimal decreases.

Specifically, in the last auction held in October, the yield on the 12-month bond was 1.7%, decreasing by 0.1 pp from the average of September, while the 10-year bond premium increased by approximately 0.2 pp, in 5.2%, from the respective last value.

“The current level of yields is below the values ​​of the beginning of the year and those of last year. The financial market has appeared calm in adapting to the dynamics of the government offer”, said the Bank of Albania. /j.p/p.s./

Minister of Finance and Economy Delina Ibrahimaj described the issuance of this Eurobond as a qualitative development of the capital market and also an increase of investors’ confidence in the bonds of the Albanian government.

According to data provided by the Ministry of Finance, the bond coupon was 5.88%, lower than the indicative coupon of 6.2% that was submitted before the auction by the Ministry of Finance and Economy.

Yields offered by auction participants were in the range between 5.2% and 7%.

In view of the high participation and favorable interest rates, the Ministry of Finance and Economy increased the value of bonds sold by 150 million Lekë, bringing the total borrowing to 1.15 billion Lekë.

15-year bonds are the longest-term debt securities ever issued by the Albanian government.

Ibrahimaj stated yesterday that the continuous improvement of debt management remains an important objective of the government./a.a/p.s./

The funding provided by Eurobond will serve to repay (refinance) part of the Eurobond received in 2020 and the rest to meet the needs for budget financing.

Albania closed its fourth exit in the capital markets in June last year by successfully issuing a Eurobond worth 650 million Euros, with a coupon of 3.5% and a trading interest rate of 3.625%. The Eurobond has a 7-year term.

This is the fifth time that our country addresses international capital markets with the Eurobond instrument.

The first Eurobond was issued in 2010 (worth 300 million Euros, 5-year maturity and interest of 7.5%) and was repaid in 2015. Subsequent Eurobonds and which are still active (not fully repaid) are:

Eurobond issued in 2015 (with 5-year maturity), in the amount of 450 million Euros and with an interest rate of 4.75%, Eurobond issued in 2018, in the amount of 500 million Euros, with 7-year maturity and interest rate 3.5%.

Meanwhile, the Ministry of Finance and Economy has launched the procedure for finding a legal advisor who will assist Albania in this process.

During successive issues, Albania has achieved success, enabling issues with lower and lower costs, due to the increased credibility in the eyes of investors./r.e/p.s./