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Slovenia's Yield Falling after Bond Issue

Ljubljana, 03 May (STA) - After Slovenia secured US$3.5bn on international markets on Thursday, concluding a dual-tranche dollar-denominated bond issue, the yield on Slovenian ten-year bonds dropped to 5.70% at around 1.45 PM on Friday, which is 15 basis points below the opening value, according to data from the electronic exchange MTS.

The ten-year bond tracked by MTS thus has a spread on the German benchmark bond of 452 basis points.

Slovenia successfully wrapped up the issue of US$1bn 5-year bond and US$2.5bn 10-year bond yesterday. The five-year coupons were issued at a 4.75% interest rate and the 10-year coupons at a 5.85% rate.

According to media reports, the buyers of the 5-year bond can expect a 4.95% yield and the 10-year bond is to yield 6%.

A surprising excess of US$16bn in orders had been listed before the books were closed, despite credit rating agency Moody's downgrade of Slovenia sovereign rating to junk level at Ba1 on Tuesday.

Rival rating firms Fitch and Standard & Poor's meanwhile kept Slovenia's rating at a four-notch higher investment grade A-.

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