15 International Lenders Bid To Structure Albania’s Up To 350 Mln Euro Debut Eurobond Issue

TIRANA, Feb 8؁lbania received offers from 15 international lenders for lead managers of its first-ever eurobond issue worth up to 350 million euro ($479 million), the Finance Ministry said.
“Fifteen prestigious international banks with experience on the capital market have placed their offers which will be assessed by the Finance Ministry to shortlist the four-five best [bids],” the ministry said in a statement on Saturday.
The deadline for submission of offers expired on January 5.
The government in Tirana plans by May to issue between 300 and 350 million euro, of which 200 million euro will go to repay a syndicated loan borrowed last year. With the rest the government will finance its budget needs.
In May 2009, Albania agreed a 250 million euro syndicated loan from 20 banks that was managed by Deutsche Bank and Greece’s Alpha Bank to finance its capital spending that year.
Albania has been considering for several years financing its budget with a eurobond issue which it expects would ease the pressure from the local banks and boost the local currency. This is Albania’s second attempt to emit eurobonds after an effort in early 2009 was abandoned due to the global financial crisis, forcing the Ministry of Finance to opt for a costly syndicated loan.