NewEuroMTS, the market for euro-denominated government securities of the May 2004 European Union (EU) Accession States, today announced that the Republic of Lithuania has become the third issuer to have its bonds included in the market. Republic of Lithuania 4.50% 2013 bonds today joined issues from Poland and Hungary on NewEuroMTS and its market makers.
15 market-makers will make prices in the Lithuanian bonds. “Inclusion on NewEuroMTS will foster liquidity in our bonds and will help reduce the liquidity premium to which investors are currently subject,” says Lukas Tursa, Director of the Lithuanian State Treasury Department. “We expect investors will therefore participate with increased confidence, which will in turn lead to lower funding costs.”
Bonds currently on the platform include Republic of Hungary 4% 2010, 4.50% 2013 and 4.50% 2014; as well as the Republic of Poland’s 3.875% 2009, 5.50% 2011 and 4.50% 2013. To be eligible for listing, bonds must be issued by the May 2004 EU Accession States, issued or tapped no earlier than 2 years prior to listing date, with a minimum maturity of 15 months, investment-grade rated or of good credit quality, and a minimum outstanding size of 1 billion.
“We are extremely pleased in the continued growth NewEuroMTS, which is already encouraging larger, more liquid bonds from EU Accession States issuers,” says Gianluca Garbi, CEO of EuroMTS. “By providing liquidity and efficiency to these issuers, a more transparent and cohesive European marketplace will continue to develop.”