Albania has issued a 10-year Eurobond on the London Stock Exchange. According to sources from the financial market, the Albanian state issued Eurobonds for a total value of Euro 650 million, with a yield of 5%.

The demand for Albanian Eurobonds presented by investors has been very high and reached a total amount of 3.7 billion euros. Initially, the Ministry of Finance had entered the process with an initial indicative yield of 5.5%, but the high market demand has favored a lower yield than expectations.

Tuesday's issuance was the second 10-year Eurobond of the Albanian government, after the one in 2021. Even in 2021, the loan amount had been 650 million euros. The yield was lower, at 3.75%, but interest rates in international markets were lower. The process took place in November 2021, before the start of the inflationary wave and the start of the interest rate hike cycle by central banks. The European Central Bank's base rate for the euro in the period was still 0 (deposit rate 0.5%).

Currently, the base interest rate for the euro stands at 2.9% (deposit rate 2.75%). The return of interest rates to a downward trend has pushed the Ministry of Finance to return to a 10-year maturity, as in the last issue, in 2023, it came up with an offer for a 5-year Eurobond.

In general, in recent issues, financial market investors have shown high demand for Albanian Eurobonds, which seem to offer a satisfactory ratio between benefits and risks.