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The Republic of Slovenia: New EUR 1.5bn 1.1875% 10-year bond offering due 14 March 2029

Ljubljana, 7 January 2019 - The Republic of Slovenia, rated Baa1 (Stable – Moody’s) / A+ (Positive – S&P) / A- (Stable – Fitch), successfully issued today a new EUR1.5bn long 10-year Slovenian Government bond due 14th March 2029. The transaction marks the first Sovereign bond offering out of Europe contemplated in 2019.

On the back of supportive market conditions, on Monday 7th January at 10:00 CET Initial Price Thoughts for a new long 10 year benchmark EUR-denominated issue were released at “MS+high 40s bps area” with the aim to execute the transaction intraday. Abanka, Barclays, BNP Paribas, Credit Agricole CIB, Commerzbank and HSBC jointly led the bond offering. 

 

Driven by a strong momentum gained from the outset, Indications of Interest surpassed EUR 2bn (including EUR 450mn of JLM interest) in about two hours after the mandate announcement, allowing the Republic of Slovenia to revise pricing and release Price Guidance of “MS+45bps area” at noon CET. The demand grew steadily and the revised guidance of “MS+40/42 bps (Will Price in Range)” was released at around 13:40 CET, reflecting a further price tightening on the back of an orderbook in excess of EUR 3bn (including EUR 500mn JLM interest). The orderbook held together well, and the transaction was launched at “MS+40bps” at 15:15 CET, setting the issuance size at EUR 1.5bn.

 

The transaction priced later in the afternoon at 17:15 CET with an annual coupon of 1.1875% and at a re-offer price of 99.785% (re-offer yield of 1.210%).

 

The positive momentum gained throughout the successful execution is also reflected by a very strong final orderbook in excess of EUR 3bn (including EUR 500mn JLM interest) with participation from 118 accounts with a diversified institutional and geographical distribution.

 

Investor Statistics:

 

Allocation by Investor Region

 

United Kingdom & Ireland                     41%

Germany & Austria                               17%

Slovenia                                                  9%

Benelux                                                 12%

France                                                     8%

Nordics                                                    3%

Switzerland                                             2%

Rest of Europe                                        4%

Asia                                                         2%

Americas                                                 2%

 

Allocation by Investor Type

 

Banks / Treasuries                                 38%

Fund Managers                                      31%

HF / Trading                                           21%

Pension Funds / Insurers                         7%

Central Banks / Official Institutions          3%

 

  

 

Neither this announcement nor any copy of it, in whole or part, may be taken or transmitted, directly or indirectly, into the United States, Australia, Canada or Japan or any other jurisdiction where to do so would be unlawful. This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase or subscribe, any securities to any person in any jurisdiction, nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefore. The offer and the distribution of this announcement and other information in connection with the offer in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.  This announcement is not an offer for sale of, or a solicitation to purchase or subscribe for, any securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act of 1933. The Issuer has not registered and does not intend to register any portion of any offering in the United States or to conduct a public offering of any securities in the United States and would only do so by means of a prospectus that may be obtained from the Issuer that would contain detailed information about the Republic of Slovenia.

 

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