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Lebanon mulls $2 billion Eurobond issuance

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Lebanon’s cabinet approved a plan to overhaul its electricity industry on 8 April, a move that could potentially save hundreds of millions of dollars a year and improve investor confidence in the nation’s struggling economy.

Sunday 14, April 2019

(Bloomberg) – The economic adviser to the Lebanese ministry of finance said that the government is planning to issue euro bonds that could be in the range of $2 billion.

Talal F. Salman, the adviser to Minster of Finance, said, “The debt’s maturity is expected to be 10 years or more and the timing will probably be the end of May or June.”

“We’re waiting now for some good news coming out of budget that has austerity measures; we believe this will improve yields even further, after that we’re planning to execute the deal,” added Salman.

Salman said that Lebanon sent a request for proposal to banks and the biggest buyers are expected to be Lebanese banks, adding that international buyers are waiting for good news before they commit to any transaction and with the electricity plan they’re definitely more interested now.

The country is planning to cut its budget-deficit-to-GDP ratio to nine per cent in 2019 from last year’s 11 per cent, the main cuts are coming from general transfers, some procurement items and NGOs, added Salman.

Beleaguered by sectarian and political strife, Lebanon is one of the world’s most indebted countries. Its budget deficit in 2018 was among the highest in the Middle East. The country also suffers from severe power shortages exacerbated by the presence of more than one million Syrian refugees.

Lebanon’s government started working on an RFP for tenders to build new power plants, and details of the plan and who will be building the facilities will be clear by October, said Salman.


TAGS : eurobonds, RFP , budget-deficit

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