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The Republic of Slovenia: New EUR 500 mio 0.6875% 60-year bond offering due 3 March 2081

On Wednesday, 27th January 2021, the Republic of Slovenia successfully entered the markets with a 60-year (Mar-81) benchmark issuance of EUR 500 mio. This landmark transaction constitutes the longest ever bond issue from the Republic of Slovenia on Debt Capital Markets. The success of the transaction, with more than EUR4.3bn of demand, is a strong testimony of the confidence institutional investors have into the Republic of Slovenia.

The transaction priced at 14:50 pm CET. The new EUR 500 mio 60-year benchmark priced with a coupon of 0.6875% and a reoffer spread of 60y MS+75bps, offering a 0.70% reoffer yield, equivalent to a spread of 82.8 bps over the DBR 0% 08/2050.

On Tuesday, 26th January 2021, at 13:30 CET and on the back of relatively constructive market conditions given the recent global disruptions, Slovenia announced the mandate for a new 60-year EUR benchmark. After gathering supportive investor feedback overnight, books were opened the following morning with initial guidance set at MS+78bps area. The spread was revised lower and set at MS+75bps as demand stood in excess of EUR 4.5 bn (excl. JLM interest) at 11:13 am CET. The transaction was launched at 12:34 CET with the tranche size set at EUR 500 mio.

Books closed in excess of EUR 4.3 (excl. JLM interest) with demand from more than 150 very high quality investors.

BNP Paribas (B&D), Deutsche Bank, Goldman Sachs Bank Europe SE and HSBC jointly led the offering.

The geographical and institutional investor distributions were as follows:

Geographical distribution:

34%       Germany & Austria

15%       France

15%       UK & Ireland

14%       Americas & Other

11%       Other Europe

4%         Italy

3%         Nordics

3%         Slovenia

1%         Benelux

Institutional distribution:

67%       Fund Managers, Insurance, Pensions

13%       Banks

13%       Other

7%         Official Institutions