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Slovak euro-bonds stir interest in market
13 Jan 2014 Flash News
SLOVAK government bonds, of the new 15-year benchmark euro-bond emission, were in demand during the January 10 auction. As many as 170 investors placed orders worth €4 billion, the Debt and Liquidity Management Agency (ARDAL) informed, as reported by the SITA newswire.
That allowed ARDAL to lower the price from the original 115 basic points above interest rate swap to the final 105 points.
The first transaction of 2014 thus ended for Slovakia with the sale of bonds worth €1.5 billion.
“Distribution and strong participation of investors again confirmed the appreciation of the quality and attractiveness of the Slovak Republic as an issuer,” ARDAL wrote, as reported by SITA, adding that this emission is the first one with the maturity of 15 years in the countries of central and eastern Europe in the last three years.
Most emissions were sold to investment funds, with the share of 44 percent, followed by insurance companies and funds that bought 36 percent of the emission. Banks bought 17 percent and other investors 3 percent.
Half of the investors came from Germany and Austria, while others were from the UK, Ireland, France (each 11 percent of all investors). The remaining investors were from all around Europe.
“The demand of the local investors was big and it was satisfied to about 16 percent,” ARDAL wrote, as qutoed by SITA.
Finance Minister Peter Kažimír deemed the transaction “extraordinarily successful”, and the likes of which Slovakia had not seen since its independence in 1993.
“For the first time Slovakia managed to emit such a bond with such a low interest rate, therefore we can state that it is the cheapest 15-year Slovak bond in history,” Kažimír said, as quoted by SITA.
Compiled by Michaela Terenzani from press reports
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