WEBVTT

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The Ministry of Finance
is prepared

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for the second issuance
of retail bonds.

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After the very successful
first issuance one year ago,

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we are continuing our efforts
to develop the capital market,

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diversify the savings
of small investors,

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and improve
financial literacy.

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Let me remind you that last year,
nearly 10,000 citizens

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have opted to purchase
these retail bonds

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and more than 5,000 new
trading accounts were opened.

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This year, the sale will take place
from March 10 to March 21

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through the business network
of four distributors,

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namely Nova Ljubljanska Banka,
OTP Bank,

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BKS Bank,
and the brokerage firm Ilirika.

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Subscriptions will be available
at 70 NLB branches,

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79 OTP Bank branches,

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109 Post of Slovenia branches,

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8 BKS branches,
and two Ilirika branches.

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The bond will have
a maturity of three years,

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with an interest rate of 2.75%.

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In addition to the revised interest
rate, which has been adjusted

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for current market conditions
and the necessary requirements,

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another change is that the total
issuance volume will not be limited.

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As you may recall, last year
we set a limit of 250 million Euros

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but later allowed
a higher subscription

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due to increased interest.

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This year, we will not impose
such a limit at the outset

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but will assess the situation
based on demand.

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We expect,
or at least hope for,

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a level of interest
similar to last year.

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There is another change.

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The minimum subscription
remains at €1,000,

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or rather bond units will be in
denominations of €1,000.

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However, the maximum
possible subscription

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has been adjusted
to €250,000.

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The bond issuance
is intended for adult individuals

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with permanent or temporary
residence in Slovenia.

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As with the first issuance,

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the total interest earned
from this second bond,

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together with interest from cash
deposits and the first retail bond,

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will remain tax-exempt
up to an amount of €1,000.

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Following issuance,
the bonds will be listed

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on the Ljubljana
Stock Exchange.

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They will be
freely transferable,

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meaning that anyone will be able
to purchase them later.

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This means that anyone can sell
their bonds if they want to

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or rather investors,
as with other securities,

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will have the option
to buy and sell the bonds.

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I will now give the floor
to State Secretary Nikolina Prah,

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who is responsible
for the financial system

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and will provide further details
regarding this issuance. Nikolina.

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Thank you.
I will explain in more detail

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the issuance conditions
that the Minister outlined.

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The second issuance of government
bonds for small investors,

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or retail bonds, is a continuation
of the successful project

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we first launched last February.
We are pursuing the objectives

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of the Strategy for the Development
of the Capital Market

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adopted
by the government in 2023.

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We are mainly addressing
two key aspects.

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We aim to improve the financial
literacy of small investors

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by familiarising them
with the capital market,

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financial instruments,
in this case, government bonds,

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and how to open
a trading account

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and sell financial instruments
on the organised market.

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On the other hand,
we seek to increase

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the supply of financial instruments
on our organised market.

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As you know, our capital market
is relatively small,

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with low market capitalisation
and limited liquidity.

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Each new issuance of a financial
instrument only improves this.

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This initiative also introduces
a new segment of investors,

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small investors,
into government debt financing.

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We hope that such investors
will participate

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in such financial instruments
on a long-term basis.

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Therefore,
as we announced last year,

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we are working towards
making this type of issuance

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a regular, annual,
and expected event.

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The Minister mentioned
some of the issuance conditions.

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We coordinated these
in collaboration

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with the two organising banks,
OTP Bank and NLB.

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The conditions
as they were mentioned,

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we will not limit the size
of the issue as we did last year.

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Let me say that this will depend
on the demand from retail investors.

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This part
is a little less clear.

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It's difficult to determine
the interest,

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because we don't yet have
enough experience

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to say what the parameters are
that attract retail investors.

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So we have left that part open,
but we will see

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what the interest will be and,
on the other hand,

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what kind of financing the country
needs at the moment.

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As was mentioned
earlier by the Minister,

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last year's €260 million

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is the appropriate limit
in terms of the country's borrowing.

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All natural persons
of legal age

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with permanent or temporary residence
in the Republic of Slovenia

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will be able
to subscribe to the bonds.

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The subscription will take place
between 10 and 21 March this year.

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Perhaps
two more important dates.

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The bonds will be issued
on 28 March,

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and listed on the Ljubljana
Stock Exchange on 1 April.

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Each natural person will be able to
subscribe for a minimum of one lot

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with a nominal value
of €1,000

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and a maximum of 250 lots,
i.e. €250,000.

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The subscription cap
is slightly higher than last year.

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We want to address as wide
a range of investors as possible,

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which is why we have
slightly raised this limit.

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The interest rate is 2.75%,
as the Minister mentioned.

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It was set in the light
of the current market situation

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and the conditions
under which

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the Republic of Slovenia
borrows on international markets.

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We've also checked with commercial
banks what the interest rates are

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on bank deposits
for two years.

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We've also taken into account

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the additional premium
for issuing to retail investors,

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we've assessed that's the appropriate
interest rate at the moment.

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The maturity of this bond will be
the same as last year, three years.

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Someone who invests
€10,000 in this issue

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will receive €275
in interest each year

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and, after three years, in 2028,

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the entire principal,
the €10,000 invested.

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The tax treatment is the same,

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up to €1,000, the return
is not subject to tax.

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Let me point out
that for those investors

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who also invested their savings
in government bonds last year,

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for the purposes of determining tax
liability, returns are cumulative.

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The returns from last year together
with the returns from this new bond.

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The distributors this year
will again be NLB, OTP Bank,

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Ilirika and BKS Bank,

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and it will also be possible
to subscribe for the bonds

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at all Pošta Slovenije branches,

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there will be more than
260 subscription points.

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The aim is to make it possible
to subscribe for these bonds

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in as wide an area
as possible.

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We certainly hope
that this year's issue

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will also be a success and
well received by retail investors.

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All the information
that we've presented today

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will also be published
on our website,

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together with the most frequently
asked questions and answers,

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so all potential retail investors
are welcome to visit our website.

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Thank you.
-Thank you.

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Now questions related to
the bond issue, please,

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and then we can move on
to other topics. Go ahead.

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Have the distributors
already agreed on the costs?

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The cost for those who don't
have trading accounts was about €20.

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Will they be the same this year

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for those who are buying
for the first time?

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We've spoken to the distributors
and they've said that

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they will again prepare
special favourable conditions

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for all investors
who visit their branches

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and will give them the most
advantageous way of trading.

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They will get all the information
they need at their branch.

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The distributors
will give this information.

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Yes.

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Any other questions? -Have you
calculated the interest rates

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for amounts
higher than €1,000?

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Yes, this part ... -It's a bit more
because of the lower interest rates.

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We've calculated 275 for €1,000
and then ... Yes.