Budget Problems: New Borrowing on the Way"

24. 03. 2014

Budget Problems: New Borrowing on the Way"

A series of roadshows across Europe will start on Monday as Slovenia makes a renewed attempt to tap into the euro market by issuing its first public euro-denominated bond in three years.



Meetings with investors will be held in Amsterdam, Frankfurt, Ljubljana, London, Munich, Paris and Vienna.


A euro-denominated benchmark transaction may follow subject to market conditions, according to the Finance Ministry.


The last time Slovenia issued a non-private bond in euros was in March 2011, when it issued a 15-year EUR 1.5bn eurobond at an interest rate of 5.125%.


It has since sought financing on the dollar market, the latest one in mid-February, when the treasury borrowed US$3.5bn through a two-part US dollar issue.


It also issued a EUR 1.5bn three-year bond in euros in November, but that was a private placement.


Slovenia is close to regaining access access to the euro market after recapitalising and nationalising the two biggest banks in mid-December in order to avert a bailout.


The yields on Slovenian bonds have since declined sharply and have been below 4% since the beginning of March.


Under the budgeting plan for this year, the government may borrow up to EUR 7.74bn this year to finance current spending and pre-finance principal payments due in 2015 and 2016.


A total of EUR 4.55bn is due this year, EUR 3.5bn in principal and about a billion euros in interest payments, including a EUR 1.5bn five-year bond that is due for payment on 2 April.


Source: TheSloveniaTimes


Budget Problems: New Borrowing on the Way