Author: admin

In line with established practice, Slovenia has once again issued a bond at the beginning of the year to finance the state budget needs for 2026.

On Friday, 2 January 2026 at circa 11:25 CET, the Republic of Slovenia announced the mandate for its return to the debt capital markets with a EUR 10-year benchmark issuance.

After gathering supportive investor feedback, books were opened on Monday, 5 January 2026 at circa 09:05 CET. Initial price guidance was released at MS+45bps area for a new EUR 10-year benchmark due March 2036.

The orderbook momentum was strong from the outset and demand exceeded already EUR 6.4bn (incl. 700mn JLM interest) at the first updated shared at 11.35 CET. On the back of that the price guidance was revised significantly lower to MS+40bps area.

Books continued to grow, reaching above EUR 7.2bn (incl. EUR 700mn JLM interest), allowing the Republic to set the spread another 3bps tighter at MS+37bps at circa 13:20 CET. The transaction was launched at circa 14:30 CET with the final issue size set at EUR 1.75bn and orderbooks in excess of EUR 10bn (incl. EUR 912mn JLM interest).

The offering ultimately priced at 17:22 CET with the following transaction parameters: EUR 1.75bn RegS notes with a coupon of 3.275 percent / reoffer spread of MS+37bps / reoffer yield of 3.312 percent / reoffer price of 99.675 percent. All-in-all, a very successful transaction for the Republic of Slovenia, as demonstrated by the sizable investor demand and low reoffer spread achieved.

Under the 2026 Financing Program, the Republic of Slovenia may borrow up to EUR 5.251 billion this year to cover budgetary requirements. The primary instrument for financing most of these needs is the issuance of government bonds, complemented by the issuance of treasury bills and, if necessary, other instruments specified in the financing program. The choice of instrument and the amount raised will depend on market conditions at the time of the respective issuance.

The Ministry of Finance estimates public debt at the end of 2025 at 66.1 percent of GDP, compared to 66.6 percent of GDP at the end of 2024. For 2026, a further reduction in public debt as a percentage of GDP is envisaged, in line with fiscal rules at the EU level. These rules, among other things, require countries with public debt between 60 percent and 90 percent of GDP to reduce it by an average of at least 0.5 percentage points of GDP per year during the fiscal adjustment period, which is duly taken into account in budget financing.

The joint bookrunners for this transaction were Barclays (B&D), DZ BANK, HSBC, J.P. Morgan, OTP Banka Slovenia and Raiffeisen Bank International.

Geographical distribution:

27 percent        Germany, Austria, Switzerland

25 percent        United Kingdom, Ireland

15 percent        France, Benelux

11 percent        Southern Europe

8 percent          Nordics

7 percent          Slovenia

5 percent          CEE

2 percent          Other Countries

Institutional investor distribution:

43 percent        Banks

28 percent        Asset Managers

13 percent        Central Banks / Official Institutions

10 percent        Insurance / Pension Fund

6 percent          Hedge Funds

Not to be released, published or distributed directly or indirectly in whole or in part in or into or to any person located in or resident in the United States or into any other jurisdiction where it would be unlawful to do so. 

The Notes are being offered and sold pursuant to an exemption from the registration requirements of the U.S. Securities Act, outside the United States in offshore transactions, in reliance on, and in compliance with Regulation S under the U.S. Securities Act. This announcement has been prepared for use in connection with the offer and sale of the Notes and does not constitute an offer to any person in the United States. Distribution of this announcement to any person within the United States is unauthorised. In member states of the EEA, this announcement is directed only at persons who are “qualified investors” within the meaning of Regulation (EU) 2017/1129 (the “EU Prospectus Regulation”). In the UK, this announcement is directed only at persons who are “qualified investors” within the meaning of Regulation (EU) 2017/1129 as it forms part of domestic law of the UK by virtue of the European Union (Withdrawal) Act 2018 (the “UK Prospectus Regulation”). This communication is being distributed to, and is directed only at, persons in the United Kingdom in circumstances where section 21(1) of the Financial Services and Markets Act 2000, as amended, does not apply.

A rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time by the assigning rating organisation.

Manufacturer target markets (MIFID II product governance) as assessed by the lead managers are eligible counterparties, professional and retail (all distribution channels).

This announcement shall not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other securities, nor shall there be any offer, solicitation or sale of the Notes or any other securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful.