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The process of issuing the Eurobond of the Albanian government has been closed. Sources from the markets claimed that the Eurobond interest rate was 3.75%, although this is not yet the final interest rate because demand has been almost twice as high and there may be a subsequent price adjustment.
The amount requested by the government was 500-700m euros and is likely to be finalized at 700m euros.
The government has taken out this debt for a period of 10 years.
Earlier, the government announced that it would use this Eurobond mainly to finance the budget deficit to cover foreign debt payments.
This is the fifth Eurobond of the Albanian Government. The first outing was in 2010, worth 300m euros. It managed to secure a fixed coupon interest of 7.5% and a 5-year maturity.
Albania's second exit was on November 5, 2015, for 450 million euros. The fixed coupon provided at this exit was 5.75%, with a 5-year maturity.
The third exit in 2018 for Albania in the capital markets marked a more favorable interest than previous Eurobonds. From this exit, 500 million euros were issued, with a fixed coupon of 3.50% and a 7-year maturity.
In June 2020, Albania recorded its fourth exit, where 650 million euros were issued, with an offer from investors of about 3.2 billion euros, with a coupon of 3.5%, the interest of 3.625%, and 7-year maturity.
The fluctuation of interest rates in Eurobond issues over the years has been related to the conditions in the international markets at the respective moments.