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The Republic of Slovenia: new EUR1.5bn 1.000% 10-year bond offering due 6 March 2028

Ljubljana, 4 January 2018 - The Republic of Slovenia, rated Baa1 (Stable – Moody’s)/A+ (Stable – S&P)/A- (Stable – Fitch), successfully issued today a new EUR1.5bn long 10-year Slovenian Government bond due 6th March 2028. This was the first successful bond offering out of Central Eastern Europe in 2018.

The mandate was announced to the market at 15:15 CET on Wednesday 3rd January with the aim to execute the transaction intraday on Thursday 4th January. To lead manage this bond offering, the Republic of Slovenia awarded the mandate to Citi, Commerzbank, Goldman Sachs International Bank, HSBC, Jefferies and NLB.

 

On the back of positive feedback received after the announcement, Initial Pricing Thoughts of “MS+ 20bps area” were released at 09:05 CET on Thursday morning. Momentum was strong from the outset with Indications of Interest exceeding EUR 2.8bn (excluding JLM interest) by 10:50 CET, less than two hours after books opened. Leveraging on this momentum, the Republic of Slovenia revised pricing and released Price Guidance of “MS+17bps area”. Books went officially subject at 12:15 CET with the final spread set at “MS+13bps”, reflecting a further price tightening on the back of an orderbook in excess of EUR3.4bn (excluding JLM interest). The orderbook held together well, and the transaction was launched at “MS+13bps area” at 13:50CET, setting the issuance size at EUR1.5bn.

 

The transaction priced later in the afternoon at 16:10 CET with an annual coupon level of 1.000% and at a re-offer price of 99.654%.

 

The positive momentum throughout the successful execution is also reflected by the very strong consolidated final orderbook in excess of EUR 3.2bn (excluding JLM interest) with participation from 155 accounts from a granular array of institutional investors and diversified geographies.

 

Investor Statistics:

Allocation by Investor Region

 

Germany & Austria       35%

UK & Ireland                 17%

Nordics                         10%

Americas                        6%

France                            6%

Rest of Europe               5%

Slovenia                         5%

Benelux                          5%

Switzerland                     5%

Middle East                     3%

Eastern Europe               2%

                                                                                       Asia                                1%

 

 

 

 

 

Allocation by Investor Type

 

Fund Managers                  57%

Central Banks/

Official Institutions             18%

Banks                                13%

Pension Funds/ Insurers   12%