Ljubljana, 21 September (STA) - Slovenia issued on Tuesday an additional EUR 500 million-worth of 16-year bonds with an annual coupon rate of 2.25%. It will use the funds for an early repayment of a part of debt due in 2023 and 2024.
The issue increased the total nominal value of RS77 bonds which Slovenia first issued in February 2016 in an amount of EUR 1.5 billion to EUR 3.83 billion.
The intention for the issue was first announced on Tuesday morning, with investors showing strong interest, the Finance Ministry said on Wednesday. Orders quickly exceeded EUR 1.6 billion and ended up reaching more than EUR 1.8 billion.
Shortly before 5PM, the issue was priced at a 3.087% yield to maturity and a premium of 1.19 percentage points over the benchmark German bond maturing in February 2032.
Among the buyers, 38.5% were fund managers, 31% banks and 12.4% insurance companies, while geographically the majority were from the UK, France and the Benelux countries, the ministry added. On the electronic stock exchange MTS, the RS77 bond yield requirement was at 3.12% at around 2PM today.
Citing favourable market conditions, Slovenia also announced on Monday a public offer to buy back RS83 euro bonds maturing in 2023 and RS66 euro bonds maturing in 2024.
The RS83 bonds were redeemed for a total nominal amount of EUR 292.4 million and the RS66 bonds for EUR 6.9 million. The expected settlement date is 27 September.