Slovenia Preparing to Issue €1.5 Billion 10-Year Bond as Part of Debt Financing Programme

By , 08 Jan 2019, 10:20 AM Business
Slovenia Preparing to Issue €1.5 Billion 10-Year Bond as Part of Debt Financing Programme Montage: JL Flanner

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STA, 7 January 2019 - Slovenia plans to issue a ten-year bond and has mandated Abanka, Barclays, BNP Paribas, Credit Agricole CIB, Commerzbank and HSBC to lead manage the new euro benchmark, the Finance Ministry said on Monday. Citing market data provider Bloomberg, the newspaper Finance reported the issue would amount to EUR 1.5bn.

"The deal is expected to be launched in the near future, subject to market conditions," the treasury said about the bond with a stated due date of 14 March 2029.

The issue would make Slovenia the first eurozone country to test the bond market this year, Finance reported citing Bloomberg.

Finance later reported that the order book, opened on Monday morning, contained offers worth EUR 3bn in the afternoon.

According to Bloomberg, Slovenia will borrow EUR 1.5bn at a price that is even somewhat lower than initially expected.

The yield on the current 10-year benchmarks is currently at 1.04%, 0.82 percentage points over the German benchmark, according to data from electronic exchange MTS.

The debt financing programme adopted by the government in December stipulates that Slovenia will issue fresh bonds worth a maximum of EUR 2.1bn this year.

Last year it issued fresh debt worth EUR 1.5bn and also refinanced dollar-denominated bonds to the tune of EUR 1.25bn.

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