StanChart, Deutsche and Fransa to sell Lebanon’s bonds

Lebanon hired Standard Chartered Plc, Deutsche Bank AG and Fransa Invest Bank SAL to manage the refinancing of about $2 billion in Eurobonds maturing next year, Minister of Finance Mohammad Safadi said.

“I am optimistic about the appetite in the market,” Safadi said by phone today, adding that Lebanon is pursuing the refinancing early to take advantage of a fall in borrowing costs. The agreement will be announced tomorrow, he said.

The Arab country has about $3.79bn of Eurobonds due next year, including interest payments. The next Eurobond of $600 million matures in March, followed by maturities in April, July and September, according to Finance Ministry data.

Moody’s Investors Service rates Lebanon’s domestic and foreign-currency bonds at B1, four levels below investment grade. Standard & Poor’s gives them a B rating, five steps below investment grade.

In July, Lebanon refinanced about $950m in Eurobonds and interest payments maturing in August by issuing a $1.2bn dual-tranche Eurobond.