AB DnB NORD Bankas starts placement of USD denominated Government bonds

On Monday AB DnB NORD Bankas started placement of a 13-month fixed-rate Lithuanian government bonds. It is the first time when Lithuanian sovereign USD denominated securities will be available on Lithuania’s retail market.
“The debt securities are expected to generate the largest interest among those Lithuanian citizens and investors who prefer to hold part of their savings in US dollars and would like to earn higher return on their holdings than keeping them in term deposits,” Andrius Načajus, the head of DnB NORD Investment Banking said.
The zero coupon bonds that are placed by DnB NORD Bankas will yield annual 5 percent. It means that investors who buy one bond for 948.70 US dollars on Monday ( 24.08.2009) will be paid by the Government their nominal value, i.e. USD 1,000 at redemption.
The Lithuanian Government will redeem the bonds on 23 September 2010. The bonds may be sold to AB DnB NORD Bankas prior to redemption date at market price that may be higher or lower compared to acquisition price.
The new bonds are sold at all AB DnB NORD Bankas outlets. The minimum transaction amount is three bonds.
AB DnB NORD Bank, the most active participant of the country’s debt securities market, has successfully sold government debt securities worth more than LTL 1 billion to local and foreign investors this year.
AB DnB NORD Bankas is a member of DnB NORD banking group established by Norway’s largest bank DnB NOR and North Germany‘s largest bank NORD/LB.