Slovak 15-year benchmark bond issue attracts eurozone investors

Slovak debt attracted particular attention from investors in eurozone countries, according to the outcome of an auction of 15-year euro-denominated benchmark bonds on Wednesday, October 6. The Slovak government raised €2 billion in the syndicated auction, with overall demand of more than €4 billion.

Slovak debt attracted particular attention from investors in eurozone countries, according to the outcome of an auction of 15-year euro-denominated benchmark bonds on Wednesday, October 6. The Slovak government raised €2 billion in the syndicated auction, with overall demand of more than €4 billion.

The Finance Ministry’s Debt and Liquidity Management Agency (ARDAL) informed the SITA newswire that up to a quarter of investors that purchased the securities were from Germany. The portion of Austrian investors was 15 percent, 12 percent were French, while Benelux countries also took a 12-percent portion. Ten percent of the auction
went to Britain, 9 percent to Italy and another 9 percent to investors from eastern Europe. The rest of the auctioned bonds went to other states. Slovakia raised €2 billion from bonds due in 2025 that were priced to yield 150 basis points more than the benchmark mid-swap rate, which is comparable with Italian bonds and better than the price of Spanish or Polish government bonds. Finance Minister Ivan Mikloš expressed satisfaction with the results.

“We are happy about the demand and the price achieved. It proves that the financial markets realise that the budget drafted by the cabinet will bring recovery and create solid preconditions for healthy economic development in the future,” he remarked. ARDAL on Tuesday announced that it had chosen HSBC, Société Générale CIB, Tatra Banka and UniCredit Bank Slovakia to manage the bond issue. Slovakia will later place bonds for up to €3 billion in local auctions.

Source: SITA

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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