Business News

Development Bank Expands Bond Issue to Finance Business

Ljubljana, 08 March (STA) - SID banka, the state-owned development and export bank, expanded its five-year bond issue launched in April last year by issuing EUR 350m in fresh notes on Monday, the bank said in a statement. The proceeds will be used to finance small- and medium-sized businesses.

SID had previously said it would use the cash for financing projects dedicated to promoting the development of a knowledge-based society, environmental protection and a competitive enterprise.

SID had carried out the issue of its first-ever bond in April last year by putting EUR 750m worth of five-year notes on the market.

It reopened the issue, with a maturity on 21 April 2015, by launching on Monday a further EUR 350m in notes in a sale led by Deutsche Bank, HSBC and Unicredit Banka Slovenije, SID said in a statement posted on the website of the Ljubljana Stock Exchange.

The additional notes will be listed on the Luxembourg Stock Exchange and were sold at a yield of 3.889%, which is 0.39 percentage points over comparable government debt, and at a price of 96.675% of the nominal value.

The bonds have a fixed coupon interest rate of 3%.

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