TIRANA, Sept. 16 – The Albanian government borrowed 22.6 million euros in two-year bonds this week at a yield of 3.23 percent, 0.21 percent higher than its previous auction last August.
The Albania government had announced it was seeking to sell 25 million euros at an indicative quote of 3.12 percent and despite bids of more than 30 million euros decided on 22.6 million euros because of high yields.
The Albanian government secured 20 million euros in two-year euro-denominated bonds last August, 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.
Last 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 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
