Slovakia borrowed more than €530 million on the market on Monday, April 15, as the Finance Ministry's Debt and Liquidity Management Agency (ARDAL) sold government bonds in this volume. It offered them to investors, similar to the last time, in two auctions held on the same day. In the first auction of ten-year bonds, it sold €376 million, of which €89 million was bought by foreign investors. In the second auction, of bonds maturing in January 2017, the agency accepted bids of €157.3 million, of which €70 million were sold to foreign investors.
The accepted bids thereby significantly exceeded the original amount which the agency itself estimated. According to its monthly overview, it expected to raise €100 million by each bond issue. There was, however, high demand for Slovak bonds in the auctions on Monday of almost €1.1 billion. In the first auction it reached €681.9 million and €401.8 million in the second. Most of the demand came from local investors, and foreign demand in both
auctions together reached more than €410 million, the SITA newswire wrote.
The bonds, maturing in February 2023, were sold on Monday at an average interest rate of 2.8078 percent per annum, while investors initially demanded on average 2.8322 percent per annum. The accepted price for shorter bonds maturing in 2017 reached 1.2543 percent per annum, while the originally requested average price was 1.3001 percent per annum.
The Hospodárske noviny daily wrote in its Tuesday issue that the Slovak state borrowed money under the most advantageous conditions in its history, saving millions of euros.
(Source: SITA, Hospodárske noviny)
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
16. Apr 2013 at 14:00