Business News

Abanka Sells First State-Guaranteed Bond

Ljubljana, 14 September (STA) - Abanka, Slovenia's third-largest bank, successfully sold its first state-guaranteed bond issue in the international capital market on Friday.

Nearly one billion euros' worth orders for the EUR 500m issue in such a short time testify to good response from investors, the bank stated in Monday's press release. The yield of the three-year bond (maturity on 18 September 2012) was formed at 100 basis points above three-month Euribor. The bond will be listed on the London Stock Exchange. Acting as underwriters were Erste, RZB and UBS, with Abanka Vipa, Banca IMI, DZ Bank AG, HSH Nordbank, ING Bank and The Bank of Tokyo-Mitsubishi UFJ acting as co-lead managers in the bank syndicate. Of the total issue, 61% was bought by banks, 23% by funds, 4% by insurance companies, 2% by private investors, 1% by central banks and the remaining 9% by other investors. The issue attracted 99 investors from across the world, most of them coming from Europe; i.e. Austria (32%), Slovenia (23%), Germany (18%), Italy (8%), Switzerland (5%), Portugal (3%) and Central and East European countries (3%). The bank deems the successful bond issue an indication of a high level of trust in the Slovenian financial system and a confirmation of Abanka Vipa's reputation in the international capital market. After NLB, Abanka Vipa was the second Slovenian bank to apply for the guarantee under the EUR 12bn loan guarantee scheme adopted by Slovenia last November to deal with the credit crunch.

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