The Ministry of Finance issued a $5.5bn four-tranche Eurobond that it swapped with LBP8,250bn worth of Lebanese pound-denominated Treasury bills from Banque du Liban's (BdL) portfolio. It said that the issuance covers its refinancing needs and debt servicing in foreign currency until the end of 2018. Also, it noted that the swap operation helps BdL strengthen its assets in foreign currency through the acquisition of the Eurobonds. It pointed out that it plans to issue another Eurobond towards the end of the year or in early 2019, depending on more appropriate conditions in emerging markets.

The first series consists of reopening and increasing by $1bn an existing bond that matures in March 2028 and that carries a coupon of 8%, while the second series consists of reopening and increasing by $1.5bn an existing bond that matures in November 2031 and carries a coupon of 8.1%. The third series consists of a 15-year $1.5bn Eurobond that matures in May 2033 and carries a coupon of 8.2%, while the fourth series is an 18-year $1.5bn Eurobond that matures in May 2034 and that carries a coupon of 8.25%.

In parallel, the Finance Ministry indicated that BdL will subscribe to Treasury bonds that the ministry will issue, as part of the deal between the two parties. As such, it noted that BdL will acquire Treasury bonds worth LBP8,250bn that have maturities ranging between three and 10 years and that carry 1% interest rate. The ministry added that its operations with BdL will save the equivalent of $1.4bn in debt servicing cost for the Treasury.