On Tuesday (October 29), Slovakia returned to the international capital markets for the third time this year with a new euro issue of seven-year government bonds worth two billion euros. The resulting yield to maturity of 3.04% per annum (p.a.) made it possible to set the coupon at the level of 3.00% p.a. a. at the issue price of 99.751%, informed the Agency for Debt and Liquidity Management (ARDAL).
ARDAL took advantage of the favorable situation before the American presidential elections, macroeconomic events and the revision of Slovakia's rating. The leading managers of this transaction were Citigroup Global Markets Europe AG, Československá obchodná banka, a. with (KBC Group), Deutsche Bank AG and J.P. Morgan SE.
According to ARDAL, the offer of Slovak bonds attracted strong interest from the beginning, with demand exceeding five billion euros. Final orders exceeded 7.5 billion euros.
The issue was bought by 125 investors, with 53% going to banks, 29% to asset managers, 14% to central banks/official institutions, 3% to pension and insurance funds and the remaining 1% to hedge funds.
Geographically, Germany, Austria and Switzerland together had 24%, Central European investors 18%, Southern Europe 15%, Benelux 14%, UK and Ireland 11%, Scandinavia 7%, France 2%, while other European investors gained 4% and other world investors the remaining 5%.
Source: TASR
