On June 9, 2020 the Republic of Albania successfully priced a new 7-year €650 million international bond at a coupon of 3.50%. The Government intends to use the proceeds of this issuance to cover budgetary financing needs, including to foster economic recovery in the aftermath of the two consecutive shocks from the earthquake of November 2019 and Covid19.
The transaction marks the Republic of Albania’s successful return to international capital markets, following prior issuances in 2010, 2015 and 2018.
In spite of challenging market conditions for emerging economies over the first semester of 2020, the issuance attracted a very strong order book —the bond was several times oversubscribed — with the participation of more than 190 investors, including some that were previous buyers of the Republic of Albania’s bonds. The Republic believes that this success demonstrates renewed investors’ confidence in Albania’s perspectives and development path.
This transaction follows a successful series of virtual meetings of Albanian authorities with investors, co-led by Mrs. Anila Denaj, Minister of Finance and Economy and Mr. Arben Ahmetaj, Minister of State for Reconstruction.
Banca IMI, Citi, J.P. Morgan and Raiffeisen Bank International acted as Joint Lead Managers on the transaction. Rothschild & Co acted as financial advisor and Dechert LLP acted as legal advisor to the Ministry of Finance and Economy of the Republic of Albania.
Main characteristics of the transaction:
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