Page 27 - bne_np_May_19_2017

Weekly Lists
May 19, 2017 www.intellinews.com I Page 27
bne:Credit Lithuania mandates
banks for Eurobond issue
Hungary sells HUF25bn in bonds and T-bills amid strong demand
Lithuania is reportedly preparing to issue a dual tranche of 10-year and 20-year Eurobonds worth a combined €1.75bn, newswires claimed on May 18.
The Baltic sovereign is looking to take advantage of strong market conditions and extremely low risk premiums to seek very tight pric- ing on the new issues. BNP Paribas and JP Morgan are lead man- agers for the deal.
“We believe that pricing conditions will be tight, with the 10-year tranche likely to go within a 20-22bp range spread and the 20-year tranche to be in the 30-35bp range,” analysts at RBI write.
Hungarian Government Debt Management Agency AKK sold HUF- 20bn (€64.5mn) in 12-month T-bills and HUF5bn of 3-year floating- rate bonds at auction on May 18.
Bids for the 12-month security totalled HUF42.9bn, higher than the HUF32.3bn demand seen at the previous auction of the paper on May 4. The average yield was 0.12%, 2bp below the previous sale and in line with the secondary market benchmark.
Yields of the most popular government debt instrument have fallen sharply over the past three years, dropping from 3.06% in early 2014. That reflects strong investor appetite for emerging markets debt and ongoing monetary easing by the Hungarian central bank, but also efforts by Budapest to reduce external debt and the return to investment grade last year.
Ukrainian Prime Minister Volodymyr Groysman has presented the main initiatives on changes to the country's pension system, which should provide an opportunity for Kyiv to obtain new funding from the International Monetary Fund (IMF).
"The aim of the pension reform is to ensure a deficit-free budget
of the Pension Fund in the medium term, which will occur through the establishment of requirements on the duration of the insurance qualifying period and the minimum size of the insurance install- ment," the government's media office quoted Groysman as saying during a cabinet meeting on May 17.
Ukraine government unveils draft of pension reform