Slovenia: Tap of 10yr Euro Denominated Benchmark
On the 20th of September 2022, the Republic of Slovenia, rated A3 (stable)/A (stable)/AA- (stable) reopened its 2.250% March 2032 (Mar-32) by €500mn. The new issue size totalled €3.83bn after reopening.
Around 9:50 CET, the Republic of Slovenia announced its intention to reopen its Mar-32 line for an intraday execution. Books were opened with Initial Pricing Thoughts (IPTs) released at MS+45 bps area. On the back of the positive tone at the open, momentum remained strong throughout the morning and following robust investor interest, with books above €1.6bn (incl. €530mn Joint Lead Manager (JLM) interest), the spread guidance was released in the context of MS+40 bps area (+/- 2bp WPIR) at 12:30 CET. Shortly thereafter, the pricing tension available in the book supported a further tightening in price with the spread set at MS+38bps for a €500mn transaction. Final books closed in excess of €1.8bn (including €530mn JLM interest).
The transaction priced at 16:37 CET, offering a reoffer yield of 3.087%, equivalent to a 119 bps spread over the DBR 0% 02/15/32.
On the back of constructive market conditions, Slovenia announced a Tender Offer in combination with a EUR offering on Monday, the 12th of September 2022, at 14:15 CET. With the cash tender offer the Republic was targeting its EUR 0.200% Mar-23 notes and EUR 4.625% Sep-24 notes. The tender offer was conducted via a Modified Dutch Auction procedure.
On the 20th of September 2022 at 14:20 CET, the Republic of Slovenia announced the results and pricing of the tender offers which will be financed by the proceeds from the tap of the Mar-2032 Note. The Republic bought back:
- EUR 0.200% Mar-23 notes in the amount of EUR 292,367,000 at a purchase price 100,142%,
- EUR 4.625% Sep-24 notes, in the amount of EUR 6,946,000 at a purchase price 106,267%,
Joint lead managers of the transaction were: Barclays, BNP Paribas, Erste Group and J.P. Morgan.
The geographical and institutional investor distributions were as follows:
EUR Mar-32 tap statistics
23.0% France / Benelux
20.8% Other Europe
14.9% Germany / Austria / Switzerland
38.5% Asset Manager
31.0% Bank / Private Bank
7.6% CB / OI
3.4% Hedge Fund