Announcement to banks and public regarding sale of Republic of Lebanon Eurobond from BDL’s portfolio

The Central Bank of Lebanon sold USD 3.022 billion of the Republic of Lebanon Eurobonds from its portfolio for settlement May 30, 2018 as follows: USD 1,224,600,000 7 % maturing on March 20, 2028 at parUSD 1,045,000,000 8.2 % maturing on May 17, 2033 a...

The Central Bank of Lebanon sold USD 3.022 billion of the Republic of Lebanon Eurobonds from its portfolio for settlement May 30, 2018 as follows:

USD 1,224,600,000 7 % maturing on March 20, 2028 at par

USD 1,045,000,000 8.2 % maturing on May 17, 2033 at par

USD 752,500,000 8.25% maturing on May 17, 2034 at par

The Central bank increased the amount it intended to sell from USD 1 billion to USD 3.022 billion due to the high local demand.

The Central Bank doesn't intend to sell any more Eurobonds from its portfolio during 2018.

The banks discounted CDs in USD at par held in their portfoliosto cover the cost of the acquired Eurobonds.

As a result, after the SWAP operation with the Ministry of Finance for 5.5 billion USD the Central Bank decreased its liability in dollars by USD 3 billion and increased its dollar assets by 2.5 billion USD.

The remaining Eurobonds held by the Central Bank in its portfolio totaling around 4.7 billion USD from the previous swap executed in November 2017 and the current one, represent around 8.18% of its total dollar assets.

The Central Bank and upon Instructions from the MOF will pay in Cash all maturing Eurobonds and related debt service in 2018.

Source: National News Agency