By: C. R.
Slovenia today issued a 30-year bond worth one billion euros on international capital markets, with a coupon interest rate of 3.5%. It is the first country to issue a bond with such a maturity this year, taking advantage of strong investor demand for long-term financial instruments, according to the Ministry of Finance.
This is Slovenia’s first issuance of a new 30-year bond since 2020. Its maturity date is April 14th, 2055.
According to the Ministry of Finance, the success of the transaction was demonstrated by the large final order book, with total demand exceeding 3.2 billion euros, including 505 million euros in demand from the issue’s organisers.
The organisers of the issuance were Deutsche Bank, Erste Group, Goldman Sachs, HSBC, JP Morgan, and OTP Banka Slovenija. The government granted them the mandate for the new 30-year bond issue, RS95, on Monday. The order book was opened this morning, and the final size of the issuance, amounting to one billion euros, was determined around 1:40 PM.
The Ministry of Finance also published data on the structure of investors in this bond issue.
Institutionally, 55% of the demand came from asset managers, 18% from insurance companies and pension funds, 17% from official institutions such as central banks, and 10% from banks.
Geographically, 39% of the investors were from the United Kingdom, 25% from nearby Germany, Austria, and Switzerland, 17% from Nordic countries, 7% from Central and Eastern Europe, 4% each from Southern Europe and France, 2% from Slovenia, and the remaining 2% from elsewhere in the world.
With the issuance of this new bond, Slovenia continues its multi-year practice of borrowing in the first days of the calendar year. In 2025, the country may borrow a maximum of 4.58 billion euros in total.