The Slovenia Times

NLB, Petrol Issuing Corporate Bonds



Business daily Finance reported on the corporate decisions based on information published in the US business media company Bloomberg, while the state-owned NLB bank said it would take a decision on a potential issue and details of the deal considering the response and the assessment of the market situation.

If the issue of non-guaranteed preference bonds is successful, it will be NLB's first such issue on international financial markets, where the bank has so far only issued a state-guaranteed bond once, in 2009.

The bank would use the funds raised through the issue for its general financing, dispersal of financing sources and replacing some of the more costly sources. The bank also believes that the issue would contribute to its better recognition in financial markets.

Petrol had already staged a roadshow across Europe last week and today opened an order book for five-year corporate bonds as it aims to raise EUR 265m. The book running manager is the US investment bank JP Morgan Chase. The interest rates will be paid once a year, with the bond having maturity on 24 June 2019.

According to Bloomberg, the interest rate for what is one of Slovenia's biggest companies has fallen from the initial assessment of 3.75% to 3.4%, which may be seen as an indication of considerable interest on the part of investors.

NLB and Petrol are seeking to benefit from the increased interest of investors in Slovenia and other euro countries, a trend following the recent measures taken by the European Central Bank.

The developments have reflected in the falling yield on the Slovenian ten-year bonds. The implicit interest rate on Slovenia's long term debt fell below 3% on Monday, a record low since the country introduced the euro in 2007.


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