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Lebanon this week launched a $1bn two-tranche bond: $700mn at 6.65% due in 2024, and $300mn at 7% due in 2031. Both the yields and the fact that the bond was 128% oversubscribed are impressive given that the country is rated well inside ‘junk’ territory by ratings agencies. Moody’s rates Lebanon B2, five notches below investment grade, S&P B- (-6) and Fitch ‘B’ (-5).
Yields are just shy of those obtained in November (6.25% for nine years; 6.65% for 13 years, and 7.05% for 20 years), despite the worsening geopolitical and economic conditions. The bond was managed by Deutsche Bank and Lebanon’s Blom Bank and Byblos Bank. The proceeds will be used to refinance maturing debt.
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