UPDATE 1-Lithuania issues $750 mln 7-yr bond

(Adds details on borrowing needs)

VILNIUS, Sept 7 (BestGrowthStock) – Lithuania sold $750 million of
seven-year paper on Tuesday, the second dollar bond this year,
the Finance Ministry said on Tuesday.

Lithuania, which saw its economy drop 14.8 percent in 2009,
avoided seeking international assistance as neighboring Latvia,
by tapping international markets to finance its budget
deficit.

The paper was sold at a yield of 5.249 percent and a coupon
of 5.125, the ministry added.

Order books for Lithuania’s bond had attracted at least
$2.25 billion, a fund manager said earlier on Tuesday.

The issue follows Lithuania’s recent meetings with
investors in Europe. Initial talk focused on a euro-denominated
bond but there was not sufficient demand, a fund manager said.

Lead managers were Barclays, HSBC and RBS.

Lithuania raised a record $2 billion in 10-year Eurobond at
a yield of 7.625 percent and a coupon of 7.375 in February.

BORROWING NEEDS

Lithuania planned to borrow a total 12.8 billion litas
($4.73 billion) in 2010, including 6.6 billion litas on foreign
markets.

The borrowing plan was cut to 11.5 billion litas in
mid-summer, while the government managed to raise 7.2 billion
litas during the first half of the year, both on domestic and
foreign markets, the finance ministry said.

That left the borrowing need at 4.3 billion litas, while
the new Eurobond issue has covered more than 60 percent of
that.

Lithuania faces a public sector deficit of 8 percent this
year, but pledged to cut it under Maastricht criterion of 3
percent by 2012 to be able to adopt euro in 2014.

The public sector debt is expected to reach 36.6 percent of
GDP in 2010.
($1=2.709 Litas)
(Reporting by Nerijus Adomaitis;Editing by Diane Craft)

UPDATE 1-Lithuania issues $750 mln 7-yr bond