Latvia placed €350mn in new 10-year Eurobond offering on May 23 and tapped the outstanding series maturing in February 2047 for €300mn.
The yield on the 10-year papers came in at 1.125%, while the tapped issue was priced at 2.25%.
Final pricing went on the tighter side of the guidance range, at 15bp over mid-swaps for notes due 2028 and 37bp over mid-swaps for notes due 2047, Raiffeisen Bank noted.
“Tight spreads on Latvian Eurobonds make them less appealing than similarly rated Lithuania or Poland,” Raiffeisen Bank wrote.
“On the other hand, smaller supply and strong dedicated institutional investor interest imply far lower volatility than would normally be expected,” it added.
Latvia is rated 'A-', 'A-', and 'A3' by Fitch, S&P and Moody’s, respectively. S&P has a positive outlook on Latvia while the other two agencies keep it stable.
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