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%.

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