Ardal sells government bonds worth €388 million

The bonds have maturity dates in 2023 and 2027.

Illustrative stock photoIllustrative stock photo (Source: Sme)

The Debt and Liquidity Management Agency (Ardal) sold €388 million worth government bonds in two auctions on June 20. The total demand in the auction reached €678 million, the TASR newswire reported.

In an auction of government bonds maturing on January 21, 2027, Ardal accepted investors’ bids amounting to €165 million, of which €124 million came from non-residents. Total demand in the auction reached €299 million. The minimum interest rate stood at 0.7057 percent p.a., the average one at 0.7516 percent p.a. and the maximum one at 0.7675 percent p.a.

In another auction of government bonds maturing on November 13, 2023, the agency accepted bids totalling €223 million, of which €155 million came from foreign entities. Total demand in the auction climbed to €379 million. The minimum interest rate stood at 0.1703 percent p.a., the average rate at 0.2094 percent p.a. and the maximum rate at 0.2322 percent p.a., TASR wrote.

A positive result was posted chiefly with a bond with a 7.5-year maturity with yields lower than in the first auction, said the Finance Ministry’s press department. Conversely, yields of the 10-year benchmark bond went slightly up, chiefly as a result of worries about a nervous market prior to the British referendum on Brexit.

Despite this, Ardal is satisfied with the auction results in general in regards to high demand and interesting yield achieved in the auctions. The fact that more than half of bonds were bought by foreign investors attests to investors’ interest in Slovak bonds, stressed the ministry.

“It’s a manifestation of stability and credibility of the Slovak Republic in the eyes of local, as well as foreign investors,” said Finance Minister Peter Kažimír, as quoted by TASR, adding that the money gained in this way will be used for debt servicing.

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