TIRANA, Aug. 18 – The Albanian government secured 20 million euros in two-year euro-denominated bonds this week, at a coupon rate of 3.12 percent, 0.12 percent higher than its indicative quote of 3 percent despite bidders offering to buy about 40 million, said the country’s central bank.
Last July, the Albanian government raised only 38 million euros out of 45 million euros it was seeking to sell in a special Euro-denominated auction in 12-month T-bills.
In total, the Albanian government secured 58 million euros out of 65 million euros it was planning to raise in the internal market in two euro-denominated auctions.
This summer’s auctions brought lower yields to the Albanian government considering that the European Central Bank continues keeping its key rate at a historic low of 0.05 percent and has undertaken quantitative easing of Euro 1.1 trillion into the ailing eurozone economy, considerably cutting bond yields in international markets, with the escalation of the Greek crisis having a minor impact.
The last time the Albanian government sold Euro-denominated 12-month T-bills was in December 2014 when it auctioned around 20 million euros at an average of 2.34 percent.
Back in July 2014, the Albanian government secured Euro 38 million in Euro-denominated 2-year bonds at a yield of 3.5 percent.
The Albanian government is seeking to raise 300 million Euros or more in a five to seven year Eurobond denominated in Euro or USD to refinance the five-year inaugural Euro 300 million Eurobond it issued in November 2010.
The escalation of the debt crisis in neighboring Greece could have a negative impact on Albania’s Eurobond issue scheduled for this month with higher than expected yields, experts say.
