Slovenia Issues EUR 1.5BN Bond in Surprise Move


The bond, a three-year private placement with a sole investor, has a coupon interest of 4.7% and was sold at 99.6% of nominal value, meaning that the yield was slightly above the coupon rate.

This is the first eurobond issue after a long hiatus, as Slovenia was effectively shut out of the eurobond market and the last two issues of ten-year bonds were on the US market.

Indeed, even yesterday Finance Minister Uroš Čufer said Slovenia would once again attempt to borrow on the US market, which is more liquid.

However, the recent positive assessment of Slovenia's fiscal policies by the EU has brought yields on ten-year bonds below 6% for the first time in eight months, according to data from the electronic exchange MTS.

By early afternoon the yield had dropped 21 basis points over Thursday, to 5.88%.

Bratušek told the press in the afternoon that the issue was proof that financial markets were now open for Slovenia.

She said the money would not be used for current spending, as the government had previously secured sufficient financing for this year and next.