Slovenia announces $1bn bond buyback

By bne IntelliNews August 24, 2016

The Slovenian ministry of finance announced on August 23 a $1bn buyback tender for three issues of dollar denominated bonds - its $1.7bn 5.5% issue due in 2022, $2.1bn 5.85% issue due in 2023 and its $1.7bn 5.25% issue due in 2024.

The country issued bonds on the US market in 2012, 2013 and 2014 in a time of economic turmoil but since implementing reforms and avoiding an international bailout and noticing that yields on its debt have fallen significantly, it decided to launch a bond buyback. It already bought back $1.25bn worth of bonds in May.

The ministry said on August 23 that the buyback ender is open until August 30 with the treasury offering repayment in eight days.

The volume of interest in the buyback tender is expected to be announced on August 31, pending a possible extension of the August 30 deadline, with the price to be determined later the same day.

In autumn 2012, Slovenia raised $ 2.25bn through an issue of 10-year bonds with a coupon rate of 5.5%. This was followed by a $ 2.5bn issue with a coupon rate of 5.85% in May 2013.

In the final debt action on the US market in February 2014, the country conducted a dual-tranche issue of five- and ten-year bonds worth a combined $3.5bn. The ten year bonds, which are subject to the buyback, carry a coupon rate of 5.25%.

Related Articles

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Czech-based CME divests Croatian Nova TV and Slovenian Pop TV for €230mn

Czech Republic-based broadcaster Central European Media Enterprises (CME) on July 10 announced the divestiture of its leading Croatian and Slovenian TV stations to United Group's Slovenia Broadband ... more

Sberbank acquires 18.53% stake in Slovenian Mercator

Russia’s Sberbank acquired a 18.53% stake in Slovenian retailer Mercator, a subsidiary of Croatia’s Agrokor, at the asking price of €40.58mn at an auction on July 7, Slovenian Press Agency ... more