The Slovenia Times

Slovenia Successfully Closes US$3.5bn Dual-Tranche Bond Issue

Nekategorizirano


The buyers of the US$1bn 5-year bond can expect a 4.95% yield and the US$2.5bn 10-year bond is to yield 6%, according to media reports.

A surprising excess of US$16bn in orders is reported to have been listed before the books were closed, despite a downgrade to the Ba1 junk level by Moody's, which forced the country to suspend the first attempt at the issue on Tuesday.

Rival rating firms Fitch and Standard & Poor's meanwhile kept Slovenia's sovereign rating at a four-notch higher investment grade A-.

Following Tuesday's suspension, the issue was reopened today with a +12.5 basis point correction of the yield guidance, but the strong interest pulled the yield down, indicating that the issue did not suffer from the sovereign rating downgrade.

The Slovenian Finance Ministry is currently unavailable for comments. According to public broadcaster TV Slovenija, Finance Minister Uroš Čufer is to speak to the press in Ljubljana on Friday.

Foreign analysts meanwhile consider today's bond issue positive news for Slovenia, at least in short-term.

Timothy Ash, an analyst at Standard Bank, told Reuters that the successful issue bought Slovenia time, but stressed that the government would need to put together an ambitious reform programme and change Slovenia's economic model.
 

Share:

More from Nekategorizirano