Eurobonds swap deal done

Two new notes issued at fair coupon rates

The Ministry of Finance has recently concluded a debt swap deal through issuing new dollar-denominated debt notes. The issuance totaled $1.525 billion, of which $823 million in cash and $701 million from swapping bonds maturing in 2013.

The issuance resulted in two new Eurobonds: $500 million of notes maturing in January 2023 at a coupon rate of six percent, and $500 million of notes maturing in November 2027 with a coupon rate of 6.75 percent.

The issuance also resulted in the increase of an already existing bond that matures in November 2018 with a coupon rate of 5.15 percent by $525 million, to $1.025 billion.

Some $1.5 billion in Eurobonds are due to mature in 2013. One $875 million bond with a coupon rate of 9.125 percent will mature in March. Another $650 million bond with a coupon rate of 8.25 percent is due for maturity in June . The swap included 44.7 percent of the March notes and 47.7 percent of the June notes.

The issuance was co-managed by BLOM Bank, Byblos Bank, and Credit Suisse.