Slovakia Sells New 12-year Government Bonds Worth €2 Billion

Bratislava, 28 October (TASR) - The Slovak Republic placed a new 12-year government bond issue worth €2 billion on international capital markets on Tuesday, with the yield to maturity reaching 3.702 percent p.a. at a risk premium of 99 basis points, the Debt and Liquidity Management Agency (ARDAL) announced on the same day. "By watching the situation in the capital market closely while taking into account macroeconomic developments and the affirmed credit rating for Slovakia, it was possible to take advantage of a stable environment ahead of the European Central Bank's meeting," stated the agency. The intention to place a syndicated 12-year bond issue on international markets was announced on Monday (27 October), with Citibank Europe, CSOB, Deutsche Bank and J.P. Morgan being the lead managers of the transaction. According to ARDAL, the transaction was finalised on Tuesday at 1:40 p.m. when reaching the final sale amount of €2 billion. Total orders exceeded €3.8 billion, including €362.5 million from the lead managers. The bonds were purchased by 71 investors, with most of the issue going to banks (41 percent), asset managers (33 percent) and central banks or official institutions (17 percent). Pension and insurance funds, as well as hedge funds had a 4.7 percent share each, according to ARDAL. Geographically, most investors came from Germany, Austria and Switzerland (34.5 percent), the United Kingdom and Ireland (23.2 percent), the Benelux countries (17 percent), Italy (9.1 percent), France (8.7 percent), Scandinavia (4 percent), and Central Europe (1.8 percent). jrg