Exclusive: Lithuania Treasury Director: Addl '26 Syndicated Issuance Could Range from 3 to 10 or More Years
Rasa Kavolytė, Director of Lithuanian Treasury: Still have up to €2.5 billion to raise via syndications in 2026
Kavolytė: We prefer launching new benchmarks in syndicated transactions
Kavolytė: Investor demand strongest in the belly of the curve
Kavolytė: No green bond issuance planned in the near term
Kavolytė: No current plans to target institutional investors with defense bonds
Kavolytė: Lithuania not planning to extend defense bond program to longer maturities

By Marta Vilar – MADRID (Econostream) – Lithuania still has up to €2.5 billion left to raise through syndicated transactions in 2026, with issuance timing remaining flexible over the coming six months and potential maturities ranging from three years to beyond 10 years, according to Rasa Kavolytė, Director of the State Treasury Department at the Ministry of Finance of the Republic of Lithuania.

In an interview with Econostream on 6 May 2026 (transcript here), Kavolytė said Lithuania retained up to €2.5 billion in syndicated funding capacity following the €2 billion transaction completed earlier this year.

“The Treasury has secured other financing sources during this year that allows us sufficient flexibility to issue sometime in the next six months,” she said when asked about guidance on the potential timing of such upcoming transactions.

Regarding potential maturities for upcoming syndicated issuance, Kavolytė said these would depend on the broader funding strategy and investor appetite.

“Our redemption profile allows for several options, including a new 3-year, 7-year, 10-year or something even longer,” she said.

Lithuania generally preferred launching new benchmark bonds through syndications rather than reopening existing lines already used in auctions, she added, as this approach maximized flexibility and supported liquidity.

Asked about the areas of the curve currently attracting the strongest investor interest, Kavolytė said demand had traditionally been concentrated in the belly of the curve, though appetite for very long maturities had recently increased as well.

Regarding the introduction of 2- and 3-year defense bonds, she said the objective was to improve the attractiveness of these securities as an investment product.

However, asked whether the program could eventually be expanded to institutional investors, Kavolytė said such participation was not ruled out, although interest from that segment had so far been “limited.”

“At this stage, we are not planning any dedicated features specifically targeting the institutional investor segment,” she said.

Lithuania also had no plans to extend the defense bond program to longer maturities, she said, as the instrument remained primarily aimed at retail investors, whose demand continued to be focused on shorter tenors, and particularly in the six-month and 1-year bonds.

On green bond issuance, she said this was not currently part of the Lithuanian Treasury’s near-term funding plans.