Slovakia raised on Thursday (May 23) EUR 1bn from the sale of a 5.5-year euro-denominated benchmark issue on the international markets, SME.sk reported, quoting information from the finance ministry’s Debt and Liquidity Management Agency (ARDAL).
Interest from international investors has been strong with bids worth EUR 2.81bn received. The bonds have a fixed annual coupon of 1.5% and mature on November 28, 2018. They were sold at a yield to maturity of 1.6%, setting the final spread at 65bps over mid-swaps area. According to the government, the bond was the cheapest on record.
Following the Thursday bond sale, Slovakia has already fulfilled close to 80% of its borrowing target of EUR 8.3bn for 2013.
Slovakia, rated A2 by Moody’s, A by S&P and A+ by Fitch, tapped the international debt markets last in February. It sold then EUR 1.75bn worth of a 10-year bond amid strong demand with bids reaching EUR 2.2bn, which helped push borrowing costs down to record lows. The bonds, which carry a 3% coupon, were sold at a yield to maturity of 3.13%, which corresponded to a spread of 122 bps over mid-swaps.
In November 2012, Slovakia sold EUR 1.25bn worth of 12-year government bonds with a coupon of 3.375% at a spread of 150bps over mid-swaps.
Related Articles
Non-performing loans hit historic low in CESEE, but early warning signs emerge, says EBRD
Non-performing loans (NPLs) in central, eastern and south-eastern Europe (CESEE) fell to their lowest levels since the global financial crisis in 2024, but early indicators suggest rising risks ... more
Fears grow of Russian interference in Central European media space
Two thirds of Central Europeans are concerned about Russian interference in their country’s media or public opinion, according to a new poll conducted by MEDIAN on behalf of the ... more
How Ukrainian grain wrecked the Polish grain market
The Polish grain market has been thrown into disarray by cheap Ukrainian grain that sent prices plummeting in April, causing Warsaw to impose a five-month ban, backed up by the European Commission. ... more
Most Read
-
Putin to skip Rio BRICS summit over ICC warrant as Xi signals no-show
17 days ago
-
Turkey yet to prove rare earth deposit has suggested “giant” potential despite reported processing talks with China
10 months ago
-
Uproar in Mongolia as development bank reveals scale of risky loans and NPLs
3 years ago