Albania to start roadshow for new Eurobond issue in 2-3 weeks

Albania to start roadshow for new Eurobond issue in 2-3 weeks
By bne IntelliNews August 29, 2018

Albanian officials are expected to start the roadshow for the planned €500mn Eurobond issue in two to three weeks and they would prefer a maturity of five years or more, Deputy Finance Minister Erjon Luci said, according to RBI.

In early August, the Albanian government selected US, Italian and French financial institutions to manage its planned €500mn Eurobond, which is aimed at refinancing the country’s external debt and reducing pressure on internal financial markets.

Officials also said that some €200mn could be used for buying back a substantial part of the outstanding international Eurobond, according to RBI analysts.

Albania’s S&P rating is four notches below investment grade. RBI said that current conditions for the Albanian Eurobond appear very favourable especially in relation to the actual rating, with the yield on the previous €450mn Eurobond issue which will mature in 2020 at around 1.5%, some 400 bp lower than at the time of the issue in November 2015.

The country is rated at 'B+/B' by S&P.

The new Eurobond is expected to be issued by the end of 2018.

Albania’s previous two Eurobonds, the first in 2010 and the second in 2015, were managed by Germany’s Deutsche Bank and the US’s JP Morgan Chase.

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