BRATISLAVA, Sept. 24 (Xinhua) -- Slovakia has issued a 10-year government bond worth 2.5 billion euros (2.84 billion U.S. dollars), with a coupon rate of 4.25 percent, the country's Debt and Liquidity Management Agency (ARDAL) said on Thursday.
According to ARDAL, the final yield of the new bond stood at 4.309 percent. It was the second and final syndicated bond issuance by Slovakia this year.
The bond was priced at a spread of 77 basis points above the interest rate swap rate, equivalent to 81.3 basis points above the yield on a German government bond maturing in August 2036.
More than 120 investors participated in the issue, with total demand exceeding 4.5 billion euros (5.11 billion dollars). Banks and private banks accounted for the largest share of allocations, at 45 percent, followed by asset and investment fund managers with 31 percent.
The issue attracted investors from a broad range of regions. Investors from Germany, Austria and Switzerland accounted for 22 percent of the allocation, followed by Britain with 21 percent. Meanwhile, Southern European countries accounted for 11 percent, while the Nordic countries, Central and Eastern Europe, and the Middle East each accounted for 10 percent.
"The transaction marked a historic milestone for the Slovak Republic, as it was the first-ever Slovak 10-year benchmark bond issue denominated in euros. This result highlights a significant strengthening of Slovakia's relative value position within Europe," noted ARDAL. ■