The Slovenia Times

Slovenia announces US$750M bond buyback


The offer is for less than 10% of all debt raised through three bond issues on the US market in those years.

The country issued bonds on the US market in a time of economic turmoil but, since implementing reforms and avoiding an international bailout, has seen yields on its debt fall significantly.

Investors have until 10 May to accept the tender, with the treasury offering repayment in eight days, the Finance Ministry said.

The volume of interest in the buyback tender is expected to be announced on 11 May, with the price to be determined later the same day.

The Reuters news agency reported on Tuesday the buyback tender was linked to a potential new euro bond issue by the country.

Slovenia conducted three issues of dollar-denominated bonds in a period when economic conditions meant it was virtually locked out of the euro bond market.

In the autumn of 2012 it raised US$ 2.25bn through an issue of 10-year bonds with a coupon rate of 5.5%. This was followed by a US$ 2.5bn issue with a coupon rate of 5.85% in May 2013.

In the final debt action on the US market in February 2014, the country conducted a dual-tranche issue of five- and ten-year bonds worth a combined US$ 3.5bn. The ten year bonds, which are subject to the buyback, carry a coupon rate of 5.25%.


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