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Slovenia: Tap of 0,000% Notes due on 12 February 2031

On the 8th September 2021, the Republic of Slovenia, rated A3 (stable)/A (stable)/AA- (stable) reopened its 10-year Benchmark (SLOREP 12 February 2031) by €250mn to bring the new outstanding issue to €2bn size.

Slightly before 9:20 CET, the Republic of Slovenia announced its intention to reopen its 0.000% Feb-31 line for an intraday execution. Books opened simultaneously with guidance released at MS+8 bps area.  Momentum was strong throughout the morning and on the back of strong investor interest, the guidance was revised to MS+6 bps area at 11:25 CET with books in excess of €1bn (excluding Joint Lead Managers (JLM) interest). At 13:15 CET, the spread was set at MS+5 bps for a €250mn issuance size thanks to books in excess of €1.25bn (excluding Joint Lead Managers (JLM) interest). Books closed at 13:30 CET.

The transaction priced at 15:47 CET. The €250mn Feb-31 tap priced with a reoffer spread of MS+5bps, offering a reoffer yield of 0.044%, equivalent to a 41.6 spread over DBR 0% 15/08/31.

On the back of constructive market conditions, despite Covid-19 cases raising again in Europe, Slovenia announced a Tender Offer in combination with a EUR offering on Tuesday, the 31st August at 16:50 CET. With the cash tender offer the Republic was targeting its €1.25bn 2,250% Mar-22 notes and its €2,23bn 0.200% Mar-23 notes. The tender offer was conducted via a Modified Dutch Auction procedure, with the maximum purchase yield set at -0.70% for both bonds and the final acceptance amount to be determined at the Republic’s discretion.

On the 8th September 2021 at 11:17 CET, the Republic of Slovenia announced the results and pricing of the tender offers which will be financed by the proceeds from the Feb-2031 Notes tap. For the Mar-22 notes, the acceptance amount was €11.257mn at a repurchase price of 101,553%; for the Mar-23 notes, the repurchased amount was €86.848mn at a repurchase price of 101.587%.   

Barclays, BNP Paribas, Deutsche Bank (B&D), HSBC and J.P. Morgan jointly led the transaction.

The geographical and institutional investor distributions were as follows:

10-year tap statistics

Geographical distribution:

37%     Other Europe

18%     UK & Ireland

13%     Germany & Austria

11%      Benelux

9%       Americas & Other

8%       Nordics

2%       Slovenia

1%       France

1%       Italy

Institutional distribution:

69%     Fund Managers, Insurance, Pensions

17%     Banks

8%       Official Institutions

6%       Other