BRATISLAVA, May 11, (WEBNOVINY) — After a sale of bonds denominated in Czech crowns and Swiss francs, Slovakia successfully sold its first government bond issue to U.S. investors. According to Reuters, 10-year bonds worth USD 1.5 billion were sold in the U.S.A., while demand was double that amount. The bonds were priced at 262.5-275 basis points over corresponding U.S. Treasuries.
According to Finance Minister Peter Kazimir, placing the bond issue in the U.S.A. is a big success for Slovakia, given that it entered this market for the first time ever. Demand that twice exceeded offer is a positive news, too. “It is an expression of financial markets’ confidence both in the government’s stability and in the determination to keep the deficit this year at 4.6 percent and next year to reach a deficit of 3 percent (of GDP),” the minister said at Friday’s news briefing.
Slovakia has already in the first half of the year secured enough resources to refinance its debt for nearly the whole year. Prior to the USD bond issue, it needed about one-quarter of the estimated EUR 7 billion. Following the bond sale overseas worth over EUR 1.15 billion, only some EUR 0.5 billion remains to the secured. Kazimir concluded by saying that this volume should be acquired on the local market.
SITA