Slovenia issues $500 million in ten-year dollar bonds

Slovenia has issued $500 million in ten-year government bonds with a coupon rate of 5.6 percent. Following a currency swap to protect against exchange rate fluctuations between the US dollar and the euro, the actual financing cost for the state budget is 4.124 percent.

Investor demand was strong, exceeding $785 million, which included $195 million in orders from the organizing banks. The issuance was primarily driven by continental European investors, who accounted for 65 percent of the purchase. Other participants included investors from Asia and the Middle East (15 percent), the United Kingdom (12 percent), and North America (8 percent).

The Slovenian Ministry of Finance stated that the dollar is considered a strategic currency and that borrowing in this market is part of a long-term strategy to diversify financing sources and maintain relationships with international institutional investors. This issuance follows a previous $1 billion dollar bond issue in September 2023, which had a lower actual financing cost of 3.802 percent.