Ljubljana, 28 October (STA) - Slovenia issued EUR 1bn in seven-year bonds on Tuesday at an interest rate of 2.4%, STA learnt from an unnamed source close to the matter.
The bond issue was not immediately confirmed by the Finance Ministry, which had announced earlier in the day that Slovenia would tap the debt market.
According to the source, Slovenia secured an interest rate of 2.4% on the papers due in March 2022 as demand outstripped supply by 3-to-1.
The euro-denominated issue is the second time this year that Slovenia has tapped the euro bond market, after it issued EUR 2bn in 3.5- and seven-year bonds in early April.
The seven-year bond fetched an interest rate of 3% back then.
While no additional international borrowing had been anticipated, today's issue is likely needed to finance the higher-than-anticipated budget deficit for this year.
In line with the supplementary budget which the government is expected to file in parliament on Wednesday, the deficit for this year will stand at EUR 1.2bn, up from EUR 1bn planned in the original spending plan.
As part of the amendments to the budget, the government is also seeking approval from parliament to increase the quota of debt which the state can take out this year from EUR 4.9bn to EUR 5.9bn.