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Slovenia: Taps of Euro Denominated Benchmarks

On the 16th of February 2022, the Republic of Slovenia, rated A3 (stable)/A (stable)/AA- (stable) reopened its 2.250% March 2032 (Mar-32) and 0.4875% October 2050 (Oct-50) by total of €750mn. Reopening size of the Mar-32 was €350mn, totalling to €2.7bn issue size after reopening. Reopening size of the Oct-50 was €400mn accumulating to €1.65bn issue size after reopening.

Around 9:30 CET, the Republic of Slovenia announced its intention to reopen its Mar-32 and Oct-2050 lines for an intraday execution. Books opened simultaneously with guidance released at MS+15 bps area and MS+70 bps area, respectively.  Momentum was strong throughout the morning and on the back of strong investor interest the spread was set at MS+13 bps for Mar-32 line and MS+68 bps for Oct-50 notes shortly before noon CET. At around 13.10 CET the transaction was launched with sizes of €350mn for Mar-32 and €400mn for Oct-50. At the time of the launch the books were in excess of €1bn (including EUR 360mn Joint Lead Managers (JLM) interest) for Mar-32 notes and more than €1.1bn (including EUR 340mn JLM interest) for Oct-50 line.

The transaction priced at 16:27 CET. The Mar-32 tap priced with a reoffer spread of MS+13 bps, offering a reoffer yield of 0.948%, equivalent to a 67.9 spread over the DBR 0% 2/15/2032. The Oct-50 tap priced with a reoffer spread of MS+68bps, offering a reoffer yield of 1.499%, equivalent to a 99.5 spread over the DBR 0% 8/15/2050.

On the back of constructive market conditions, Slovenia announced a Tender Offer in combination with a EUR offering on Tuesday, the 9th of February 2022, at 11:50 CET. With the cash tender offer the Republic was targeting its EUR 0.200% Mar-23 notes, EUR 4.625% Sep-24 notes, USD 5.850% May-23 notes and USD 5.250% Feb-24 notes. The tender offer was conducted via a Modified Dutch Auction procedure.

On the 16th of February 2021 at 14:30 CET, the Republic of Slovenia announced the results and pricing of the tender offers which will be financed by the proceeds from the Mar-2032 and Oct-2050 Notes tap. The Republic bought back:

  • EUR 0.200% Mar-23 notes in the amount of EUR 11,946,000 at a purchase price 100.885%,
  • EUR 4.625% Sep-24 notes, in the amount of EUR 3,095,000 at a purchase price 112.451%,
  • USD 5.850% May-23 notes in the amount of USD 6,752,000 at a purchase price 105.341%,
  • USD 5.250% Feb-24 notes in the amount of USD 575,985,000 at a purchase price 106.825%.

Barclays, BNP Paribas, Credit Agricole CIB, Deutsche Bank, Erste Group and J.P. Morgan jointly led the transaction.

The geographical and institutional investor distributions were as follows:

EUR Mar-32 tap statistics

Geographical distribution:

38.6%  UK / Ireland

34.3%  France / Benelux

15.5%   Germany / Austria / Switzerland

8.3%    Other Europe

3.1%    Slovenia

0.2%    Italy


Institutional distribution:

45.1%   Asset Manager

38.4%  Bank / Private Bank

9.7%    Hedge Fund

5.7%    CB / OI

0.7%    Other

0.4%    Insurance / Pension


EUR Oct-50 tap statistics

Geographical distribution:

52.0%  UK / Ireland

32.7%  Germany / Austria / Switzerland

7.8%    Nordics

3.5%    Other Europe

3.5%    France / Benelux

0.5%    Slovenia

Institutional distribution:

52.4%  Asset Manager

13.2%   Bank / Private Bank

12.8%  CB / OI

12.3%   Hedge Fund

9.0%   Insurance / Pension

0.3%    Other