Slovenia issues new debt of 2 billion euros
STA, 5 January 2020 – Slovenia has issued a new ten-year bond worth €1.75 billion and extended the existing 30-year bond issue by an additional €250 million, reported the Finance newspaper, adding that the coupon rate for the 10-year bond is negative for the first time.
The news follows the Finance Ministry’s announcement on Monday that it had appointed banks Barclays, BNP Paribas, Crédit Agricole CIB, Deutsche Bank, HSBC and NKBM to manage the issuance of a new bond due 2031 and the increase in the obligation due in 2050.
The Department of Finance quotes Bloomberg as reporting that demand for the 10-year bond exceeded 10.6 billion euros and the coupon rate was 17 basis points higher than the average value of the 10-year swap rate. years of -0.27%, which means that the bond has a negative coupon. rate.
Slovenia also issued an additional €250 million of existing 30-year bonds maturing in 2050. Demand exceeded €250 million. The coupon rate was 40 basis points above the median 30-year swap rate of -0.02%. This means that the sovereign borrowed at an interest rate of 0.38%, according to Finance.
Slovenia last tapped into international financial markets in October 2020. The then Finance Ministry reported that the Treasury had taken out around €6 billion in new borrowing through various new and expanded bonds , not including treasury bills.
Most of the borrowing was needed to fund relief and recovery measures amid the Covid-19 pandemic.
To implement this year’s state budget, the country is expected to borrow 5.67 billion euros, under the budget financing program adopted by the government last month.
The public debt would thus increase to 36.62 billion euros, or 75% of the country’s GDP.