Published: September 21, 2018
First 50-year bond for Slovakia
So far this year, Slovakia has issued its longest bond ever and launched a bond trading venue with MTS. The debt agency (ARDAL) explains more.
In June, Slovakia made history by issuing its first ever dual tranche transaction, including one 10-year and one 50-year bond. Marking the country’s first entrance of the year into the European capital markets, the issuance was valued at €1.5bn. This breaks down as €1bn for the 10-year tranche, with a coupon of 1% p.a., and €500 million for the 50-year tranche, with a coupon of 2.25% p.a.
According to the Finance Ministry’s Debt and Liquidity Management Agency (ARDAL), the transaction was notable for several reasons.
“The 50-year tranche represented the longest EUR denominated transaction issued out of CEE during the last 10 years and the longest bond issued by the Slovak Republic,” Daniel Bytčánek, director of ARDAL, tells EMEA Finance. “The 10-year bond was the tightest 10-year spread achieved in the CEE region during 2018. The 50-year bond was the first EUR 50-year syndicate issuance in Euro area since 2016.”