Slovenia will enter the European market of debt securities on 22 March with its first issue of benchmark 11-year Eurobonds in a nominal value of one billion euros and with a fixed interest rate of 4%, the Finance Ministry said on Tuesday.
The collection of bids started on Monday after a roadshow featuring Finance Minister Andrej Bajuk which included London, Milan, Frankfurt, Amsterdam, Brussels and Paris.
The bond issue was four-times oversubscribed and the final price was set at 10:35 AM on Tuesday.
Some 29% of the issue was sold to Germany and Austria, 19% to investors in France, 16% to Great Britain and Ireland, 9% each to Italy and the Benelux countries, 5% to domestic investors and 1% elsewhere.
Broken down by type of investor, 53% of the bonds went to asset management firms, 33% to banks, 6% each to insurance companies and central banks and 1% to funds managing short-term assets.
The money thus raised will be used by the government to fund current budget expenditures and refinance existing debt with a view to reducing the overall debt burden, the Finance Ministry said.
The bond issue was managed by the banks Dresdner Kleinwort, Societe Generale Corporate and Investment Banking and Bank Austria Creditanstalt Ljubljana (a member of Unicredito Group).
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