Slovakia sells EUR 1.25bn worth of 12-yr bonds on international markets.

By bne IntelliNews November 8, 2012
Slovakia sold EUR 1.25bn worth of a new 12-year government bond issue on the international market on Wednesday (Nov 7), with total demand reaching USD 2.1bn, Reuters reported. The bonds, which carry an annual coupon of 3.375% and mature on Nov 15, 2024, were priced at the tight end of initial guidance set at 150-153bps over the benchmark swaps curve. Finance Minister Peter Kazimir said the deal was very good as this was the lowest ever interest rate paid on Slovak long-term bonds. "This is good news for our refinancing and will also ease pressure on public finances," Kazimir was quoted as saying. The bond was placed via a syndicate of banks, including Societe Generale Corporate & Investment Banking, UniCredit and Slovenska Sporitelna, the Slovak unit of Erste Group. Slovakia last tapped the international markets in May, selling USD 1.5bn 10-year dollar-denominated bonds. Slovakia met its EUR 7.5bn gross borrowing target for 2012 already in the first half of the year, but it now took advantage of the record low borrowing costs to raise funds for pre-financing its 2013 needs. In October, the neighbouring Czech Republic raised EUR 750mn in a reopening of a 10-year Eurobond, and Poland sold EUR 1.75bn in bonds on international debt markets, also benefitting from the favourable conditions on the international debt markets.

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