BEIRUT, Lebanon  - Lebanon will launch and price a 10-year Eurobond issue in the next two days, Bank Audi , one of the lead managing banks said on Tuesday.

The issue is expected to be worth around $500 million, market sources have said.

Lebanon's finance ministry has appointed Citigroup , Lebanon's Banque de la Mediterranee along with Bank Audi to lead manage the issue.

In a brief statement, Bank Audi said the issue would be priced and launched on Wednesday or Thursday.

Lebanon has been considering a new Eurobond issue to cover debt maturing this year for some time but market source said last month it faced uncertainty over the outcome of a U.N. probe into the killing of ex-Prime Minister Rafik al-Hariri.

The U.N. team is expected to issue their report on the Hariri killing, which threw the country into turmoil, late in October. Some traders have said they would prefer the government to postpone the issue until after the outcome of the inquiry.

Lebanon is also expected to issue Eurobonds to cover some $3 billion of paper maturing in 2006, market sources have said.

With assets far exceeding the entire gross domestic product of the country that has suffered years of sluggish growth, local banks have snapped up the last few bond issues. (Reuters)