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Securities of the Government of the Republic of Lithuania

Securities of the Government of the Republic of Lithuania

Securities that the Government of the Republic of Lithuania issues and undertakes to redeem

  • You have a possibility to invest for a term between a few months and 10 years
  • You can sell these bonds prior to redemption date (the price depends on market conditions)

Based on maturity, these debt securities issued by the Government of the Republic of Lithuania are called treasury bills (up to one year) or bonds (more than one year). The Government undertakes to repay the face value of these securities on the set redemption date and pay the interest by the set deadlines.

Initial offering and secondary market

The Government of the Republic of Lithuania issues the securities each week and offers them on the initial market — i.e. in an initial offering auction.

Once the initial offering term expires, banks buy and sell these securities on the secondary market. They are also traded on NASDAQ OMX Vilnius stock exchange.

Prices for these securities on the secondary market  are posted daily on SEB’s website.

Maturity and interest

  Short-term Government securities
(treasury bills)
Long-term Government securities
(bonds)
Maturity Up to one year More than one year
Interest Treasury bills are sold at a price lower than face value while on the redemption date investors are paid an amount which equals face value.

The difference between the purchase price and face value is return on investment in these securities (interest).

Interest on these bonds is disbursed in coupon payments. Coupons are expressed in percentage and calculated from the face value of the bond. They are normally paid once per year.

On the redemption date investors are paid the face value of the bond and the last coupon.

 

For more information about securities of the Government of the Republic of Lithuania, investment risks, terms and rates of securities operations call our line +370 5 268 2822 or visit a SEB bank unit of your choice.


We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.

You can sell securities of the Government of the Republic of Lithuania without waiting for the set redemption date, but in such case their price depends on market conditions, which means investors may receive a lower return on investment than on their redemption date or even incur losses.

Please note that return on investments in Government securities may fluctuate due to inflation and changes to interest rates or other circumstances not dependent on the will or actions of the bank.

This content is for information purposes only and cannot be construed as personal recommendation, order or invitation to invest and may not constitute any basis or part of any subsequent transaction. Returns are exposed to risks, investments may rise or fall in value and the fact that return is historically positive does not guarantee that it will remain such in the future. Before you decide to invest you should review all risk factors and either yourself or with help from consultants consider whether such risks are acceptable to you.

For more information about the risk factors please refer to the publication "Description of risks related to financial instruments" (PDF, 150 KB, in Lithuanian). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit any SEB bank unit.

Please note that the above-listed services are not aimed at investors that belong to a different jurisdiction than the SEB units offering these services whereas providing of investment opportunities, permission to invest and investing in locations belonging to specific jurisdictions, including the United States of America, Canada, Japan and Australia, may be illegal. SEB Bank cannot offer investment advice, advertise investments and offer or urge to invest in locations where this may be illegal. If you live or are reading the information posted on this website in a location which does not belong to the same jurisdiction as the SEB bank unit that provides this information, you are responsible for compliance with the laws and regulations that may apply to you. For more information please contact your account manager at SEB Bank or any SEB bank unit.

Credit risk

Securities of the Government of the Republic of Lithuania relate to credit risk, i.e. the risk that the issuer of these securities, the Government of the Republic of Lithuania, may default on its obligation to settle with investors by the set deadlines and on defined terms.

Market risk

The price for Government securities sold on the secondary market may be either higher or lower than their purchase price, so investors who sell securities prior to redemption date may receive lower return on investment than on the redemption date or even incur losses. The price for Government securities on the secondary market depends on changes to interest rates, the term to the redemption date, supply and demand of securities on the market and other factors.

Interest risk

Changes to the interest rates on the market may alter the value of investments in these debt securities. As interest rates on the market increase, the value of investment in debt securities decreases. Investors investing in long-term debt securities take a higher risk than when they invest in short-term debt securities.

Reinvestment risk

As market interest rates decrease, it may be impossible to reinvest the interest (coupon) earned periodically from fixed return securities in financial instruments that yield at least the same rate of return. For this reason there is a risk to receive a lower return on investment in these securities.

Description of risks related to financial instruments (PDF, 150 KB, in Lithuanian)

For more information about securities of the Government of the Republic of Lithuania, investment risks, terms and rates of securities operations call our line +370 5 268 2822 or visit a SEB bank unit of your choice.


We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.

You can sell securities of the Government of the Republic of Lithuania without waiting for the set redemption date, but in such case their price depends on market conditions, which means investors may receive a lower return on investment than on their redemption date or even incur losses.

Please note that return on investments in Government securities may fluctuate due to inflation and changes to interest rates or other circumstances not dependent on the will or actions of the bank.

This content is for information purposes only and cannot be construed as personal recommendation, order or invitation to invest and may not constitute any basis or part of any subsequent transaction. Returns are exposed to risks, investments may rise or fall in value and the fact that return is historically positive does not guarantee that it will remain such in the future. Before you decide to invest you should review all risk factors and either yourself or with help from consultants consider whether such risks are acceptable to you.

For more information about the risk factors please refer to the publication "Description of risks related to financial instruments" (PDF, 150 KB, in Lithuanian). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit any SEB bank unit.

Please note that the above-listed services are not aimed at investors that belong to a different jurisdiction than the SEB units offering these services whereas providing of investment opportunities, permission to invest and investing in locations belonging to specific jurisdictions, including the United States of America, Canada, Japan and Australia, may be illegal. SEB Bank cannot offer investment advice, advertise investments and offer or urge to invest in locations where this may be illegal. If you live or are reading the information posted on this website in a location which does not belong to the same jurisdiction as the SEB bank unit that provides this information, you are responsible for compliance with the laws and regulations that may apply to you. For more information please contact your account manager at SEB Bank or any SEB bank unit.

For more information about securities of the Government of the Republic of Lithuania, investment risks, terms and rates of securities operations call our line +370 5 268 2822 or visit a SEB bank unit of your choice.


We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.

You can sell securities of the Government of the Republic of Lithuania without waiting for the set redemption date, but in such case their price depends on market conditions, which means investors may receive a lower return on investment than on their redemption date or even incur losses.

Please note that return on investments in Government securities may fluctuate due to inflation and changes to interest rates or other circumstances not dependent on the will or actions of the bank.

This content is for information purposes only and cannot be construed as personal recommendation, order or invitation to invest and may not constitute any basis or part of any subsequent transaction. Returns are exposed to risks, investments may rise or fall in value and the fact that return is historically positive does not guarantee that it will remain such in the future. Before you decide to invest you should review all risk factors and either yourself or with help from consultants consider whether such risks are acceptable to you.

For more information about the risk factors please refer to the publication "Description of risks related to financial instruments" (PDF, 150 KB, in Lithuanian). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit any SEB bank unit.

Please note that the above-listed services are not aimed at investors that belong to a different jurisdiction than the SEB units offering these services whereas providing of investment opportunities, permission to invest and investing in locations belonging to specific jurisdictions, including the United States of America, Canada, Japan and Australia, may be illegal. SEB Bank cannot offer investment advice, advertise investments and offer or urge to invest in locations where this may be illegal. If you live or are reading the information posted on this website in a location which does not belong to the same jurisdiction as the SEB bank unit that provides this information, you are responsible for compliance with the laws and regulations that may apply to you. For more information please contact your account manager at SEB Bank or any SEB bank unit.

How to buy Government securities on the primary market?

You can buy Government securities offered on the primary market:

How to buy or sell Government securities on the secondary market?

Once the offering period expires, you can buy and sell these securities on the secondary market - visit a SEB bank unit of your choice to file a required order.

When you buy these securities, custody fees apply.

Fees of securities transactions (150 KB)

For more information about securities of the Government of the Republic of Lithuania, investment risks, terms and rates of securities operations call our line +370 5 268 2822 or visit a SEB bank unit of your choice.


We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.

You can sell securities of the Government of the Republic of Lithuania without waiting for the set redemption date, but in such case their price depends on market conditions, which means investors may receive a lower return on investment than on their redemption date or even incur losses.

Please note that return on investments in Government securities may fluctuate due to inflation and changes to interest rates or other circumstances not dependent on the will or actions of the bank.

This content is for information purposes only and cannot be construed as personal recommendation, order or invitation to invest and may not constitute any basis or part of any subsequent transaction. Returns are exposed to risks, investments may rise or fall in value and the fact that return is historically positive does not guarantee that it will remain such in the future. Before you decide to invest you should review all risk factors and either yourself or with help from consultants consider whether such risks are acceptable to you.

For more information about the risk factors please refer to the publication "Description of risks related to financial instruments" (PDF, 150 KB, in Lithuanian). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit any SEB bank unit.

Please note that the above-listed services are not aimed at investors that belong to a different jurisdiction than the SEB units offering these services whereas providing of investment opportunities, permission to invest and investing in locations belonging to specific jurisdictions, including the United States of America, Canada, Japan and Australia, may be illegal. SEB Bank cannot offer investment advice, advertise investments and offer or urge to invest in locations where this may be illegal. If you live or are reading the information posted on this website in a location which does not belong to the same jurisdiction as the SEB bank unit that provides this information, you are responsible for compliance with the laws and regulations that may apply to you. For more information please contact your account manager at SEB Bank or any SEB bank unit.

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