TIRANA, March 30 – On Monday, the Ministry of Finance and Economy announced the four banks which will manage Albania’s transaction in the capital market, in efforts to secure 600 million euro in the upcoming Eurobond.
“According to this institution, in conclusion of the evaluation, the proposals submitted by: JP Morgan; Citi; IMI Banca & Intesa Sanpaolo Bank Albania and Raiffeisen Bank International AG were announced as the winners, selecting them as Joint Lead Managers to guide the process of issuance of a bond in the international market by the Republic of Albania,” the Ministry stated.
The winning proposals were chosen based on several criteria, including the experience of these institutions in similar transactions as well as their presence in the market, the risks of each of their proposals and the lowest cost-effectiveness considering the maturity, method of repayment, commissions, interest and other elements that affect the cost of the loan.
This year, the Ministry of Finance aims to secure at least 600 million euros in the Eurobond, as well as extend its maturity from 7 to 10 years. During the pas few years, the trend has been to extend the Eurobond maturity, with the one in 2018 being a full seven years, the longest as of yet.
Albania’s ambitious goal to extend the Eurobond maturity to a 10-year term, in order to put less pressure on the overall government debt portfolio. However, unofficial sources claim that there will likely be a revision due to the coronavirus crisis.
