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Republic of Lithuania Government Bonds

Republic of Lithuania Government Bonds (hereinafter GB) are debt securities guaranteed with State assets. GB are sold in auctions held once a week and after issue they are actively traded in the secondary market.

Main terms

  • Coupon – fixed annual interest which the Government of the Republic of Lithuania undertakes to pay to the bondholder from the nominal value of a bond usually once a year.
  • Nominal value – bond redemption price payable on redemption day (nominal value of all issues in current GB quotations is LTL or EUR 100 (depending upon currency of the issue), excluding the issue redeemable on 22 September 2017 the nominal value of which is EUR 1 000.
  • Annual yield – annual return (interest) from invested amount, which is guaranteed if bonds are held to maturity, and coupon payments received during the term of the bond will be reinvested applying the same interest. Coupon amount usually does not correspond to annual yield because bond purchase prices differ from their nominal price.

Advantages of Government Securities

  • Safety – GB is one of the safest investments because it is guaranteed with State assets.
  • Liquidity of investment – possibility to purchase and sell in the market at any time before maturity and to obtain short-term bank loans against pledge of GB.
  • Flexibility – possibility to choose desired investment period.
  • Availability – “Swedbank“, AB concludes GB transactions starting from LTL 1 000.

How to make money from Government Securities

  • Short-term Government Securities (maturity of up to 1 year, also called T-bills) are sold below their nominal value (with discount) and at maturity redeemed for the pre-agreed nominal price. The holder of such GB earns from the difference between purchase and sale prices.
  • Holders of long-term government securities (maturity of 1 year and over, also called Government Bonds) receive annual interest rate (coupon) expressed as percentage of the nominal value of GB, payments most often are made once a year (as specified in the conditions of issue of GB) and at maturity GB are redeemed at the pre-agreed nominal price.
  • The holder of GB is not required to hold them to maturity. Held GB can be sold before maturity earning from the difference of purchase and sale prices. Sale of GB before maturity can also bring a loss, if the sales price of GB falls below their acquisition price.

Risks

  • Redemption of debt securities and payment of interest is guaranteed by their issuer; therefore the investor assumes the risk of bankruptcy of the issuer (in case of GB – of the State).
  • Sale of GB before redemption term can bring a loss due to the fall of the price in the market.
  • Exchange rate changes may bring GB yield lower than expected.
  • Attempts to reinvest earned interest (coupon) with the same interest and achieve expected annual yield may be unsuccessful.
  • Debt securities of longer maturity are often more sensitive to interest rate changes.
  • Inflation can reduce the fair value of debt securities.

How to acquire

  • In “Swedbank“, AB internet bank column “Purchase/sale of bonds” you can acquire GB issues marked in red in the quotation. When filling in the purchase order choose the desired issue from those available according to the redemption date and specify the amount of GB (minimum amount of GB per transaction – 10 units) you want to acquire. If you submit the GB purchase order on weekends or holidays, you must specify that the order is valid until the next business day.
  • Information concerning GB of other issues specified in the list is provided by phone (8 5) 258 2514 or (8 5) 258 2737 on business days from 8.00 to 17.00 (Fridays – until 15.45).

Prerequisites for acquisition of GB

In order to acquire GB through “Swedbank”, AB you need:

Fees

  • “Swedbank”, AB charges a fee for the keeping of securities.
  • Bond purchase / sale fee does not apply.

LR Vyriausybės vertybinių popierių kainos

2014-04-18 07:34



Atsiskaitymo diena: 2014.04.22          
Pateikiant pavedimus internetu savaitgalį ar švenčių dienomis prašome pažymėti, kad pavedimas galioja iki sekančios darbo dienos
 LR VVP
 ISIN kodas
 Kuponas
 (proc.)
 Valiuta  Išpirkimo
 data
 Dienų
 skaičius
 Parduodate VVP Bankui  Perkate VVP iš Banko
 Kaina*  Metinis
 pajamin-
 gumas
 (proc.)
 Kaina*  Metinis
 pajamin-
 gumas
 (proc.)
LT0000602146 2.3 LTL 07.06.2014 50 102.2355 0.50 102.2742 0.20
LT0000600140 0 LTL 26.06.2014 69 99.9098 0.50 99.9639 0.20
LT0000602161 1.1 LTL 29.08.2014 133 100.9216 0.50 101.0286 0.20
LT0000600157 0 LTL 28.01.2015 285 99.5338 0.60 99.7664 0.30
LT0000603243 4.3 LTL 27.02.2015 315 103.6816 0.70 104.0341 0.30
LT0000605107 4.9 LTL 29.04.2015 376 108.9508 0.80 109.3737 0.40
LT0000603268 1.7 LTL 31.08.2015 500 102.1638 0.90 102.7100 0.50
LT0000603250 1.9 LTL 31.01.2016 653 101.4674 1.30 102.1762 0.90
LT0000611014 3.75 LTL 10.02.2016 663 105.0698 1.30 105.8083 0.90
LT0000605115 4.8 LTL 20.10.2016 916 110.6940 1.40 111.7348 1.00
LT0000603276 1.5 LTL 27.02.2017 1046 99.6681 1.70 100.7771 1.30
LT0000605123 4.7 LTL 07.06.2017 1146 112.8420 1.80 114.1290 1.40
LT0000605131 2.6 LTL 31.08.2017 1231 103.9182 1.90 105.2395 1.50
LT1000600270 4.95 EUR 22.09.2017 1253 1128.6897 1.90 1142.8167 1.50
LT0000607053 5.2 LTL 28.03.2018 1440 112.3370 2.00 113.9658 1.60
LT0000605149 2.6 LTL 31.10.2018 1657 103.3630 2.10 105.1158 1.70
LT0000607061 3.7 LTL 25.10.2019 2016 107.9086 2.50 110.0480 2.10
LT0000607087 3.4 LTL 03.10.2020 2360 104.7632 2.90 107.1617 2.50
LT0000610057 5.5 LTL 17.05.2022 2951 121.2481 3.20 124.3786 2.80
LT0000610065 4.1 LTL 28.02.2023 3238 106.6442 3.30 109.8420 2.90
* Pateiktos vertybinių popierių kainos yra orientacinės, sąlygos gali keistis priklausomai nuo situacijos rinkoje.
Pagal skelbiamas kainas sudarome sandorius iki 0,25 mln. litų VVP nominaliosios vertės. Min. kiekis 10 vnt.
Kontaktinis telefonas 8-5-258 25 14 arba 8-5-258 27 37
                 
Daugiau informacijos:              
https://ib.swedbank.lt/private/investor/stock/bonds          
 

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