Slovenia has issued a 30-year bond worth a billion euros with a coupon rate of 3.5% in what the Finance Ministry says is the first euro-denominated 30-year benchmark tranche issued by a sovereign in 2025.

Slovenia announced the mandate on 6 January and books were opened the next morning, with demand exceeding €3.2 billion before the spread was tightened.

The final issue size was set at €1bn and order books were in excess of €2.1bn, including €410 million from the joint bookrunners.

Asset managers bought 55% of the issue, insurers and pension funds 18%, central banks 17%, and banks acquired the remaining 10%.

Broken down by geography, 39% of the issue was bought by UK investors, 25% from Germany, Austria and Switzerland, and 17% from the Nordics.

Slovenia has made it a habit to tap the debt market in the first days of the year, leveraging strong investor interest in sovereign debt.

The transaction represents Slovenia's first 30-year benchmark tranche issued since 2020.

It comes after international rating agencies upgraded the country's credit rating from stable to positive last year. Moody's did so in October with S&P and DBRS Morningstar following suit in December.

S&P confirmed Slovenia's rating at AA- and DBRS Morningstar at A+. Scope Ratings also kept the country's rating at A with a stable outlook.

The Finance Ministry reckons that an upgrade in the country's ratings is possible in the near future.

This year the treasury is allowed to borrow up to €4.6 billion.

Preliminary figures, released by the Finance Ministry on 7 January, show the government budget posted a deficit of roughly €800 million or 1.2% of GDP in 2024 in what is a five-year low.

This year, the budget shortfall is projected to reach 2.6% of GDP before falling to 1.6% of GDP in 2026.