Slovenia has consolidated its position among the more advanced euro-area countries
With its credit rating by S&P (AA-), Fitch (A), Moody’s (A3), and DBRS (AH) and the placement of a new 60-year Eurobond issue and the related extension of the reference market yield curve, the Republic of Slovenia has consolidated its position among the more advanced euro-area countries.
In this way, the Republic of Slovenia is strategically expanding, and strengthening the investor base on euro debt capital markets. With such a strategy, Slovenia is achieving greater demand and more favourable borrowing conditions. It is significantly improving the maturity distribution of Slovenian bonds and optimising the central government budget debt structure. Slovenia is thus significantly reducing the risk of refinancing the central government budget debt.
The 60-year euro-denominated bonds were issued with a yield of 0.70 percent to maturity and a coupon rate of 0.6875 percent, amounting to EUR 0.5 billion. This is comparable to countries such as France and Belgium. Slovenia continues to enjoy long-term investors’ confidence. Investors have faith in the decisions and actions taken by the government of the Republic of Slovenia to mitigate the consequences of the Covid-19 pandemic on citizens and the economy.
This year, for the first time in history, the Republic of Slovenia issued long-term bonds with a negative yield of -0.096 percent to maturity and a coupon rate of 0%, amounting to EUR 1.75 billion. Slovenia has already provided EUR 2.9 billion in long-term financing for the financing of the implementation of the government budget under the Central Government Budget Financing Programme.
In January 2021, the Republic of Slovenia had already repaid 1.65 billion of debt. A further EUR 1.95 billion of debt falls due later in 2021.
This bond issue represents recognition on international markets and further trust in the decisions and actions of the Government of the Republic of Slovenia in these rather challenging times of designing and adopting measures to mitigate the impact of Covid-19.