AlbanianEconomy.comYour News from Albania
Albania to Emit €300 Million in Eurobonds
Tirana | 15 January 2010 |
The Albanian Ministry of Finance has opened a tender for a bond management company in a bid to emit 300 million in euro denominated bonds.
This is Albania’s second attempt to emit eurobonds after an effort in early 2009 was abandoned due to the global financial crisis, forcing the Ministry of Finance to opt for a costly syndicated loan.
“Close to 200 mln Euros of the proceeds will go to refinance/prepay the existing syndicate loan that we signed last year,” the Ministry of Finance said in a press release. Officials said off record that they were prepared also to cut expenses if the bond debut fails. “We intend to revise the 2010 budged by cutting expenses but the final decision is not yet taken,” an well informed official said off record because was not authorized to discuss the matter publicly.
The Ministry selected several international banks in March 2009 from which it borrowed 250 million euros. The interest agreed was EURIBOR plus 9.65 per cent and could increase till EURIBOR plus 10.65 per cent if the rating agency Moody’s cut the country’s rating that currently is B1 with stable outlook.
“We intend to refinance this loan in the next few years, after that the global turmoil calms,” minister of Finance, Ridvan Bode said at the time.
The loan was intended to finance the Rreshen-Kalimash highway which links Albania with Kosovo, with a price tag of one billion euro and marred by allegations of corruption.
