Slovakia Opens Books on 20-year Government Bonds

Finance Ministry State Secretary Radko Kuruc

Bratislava, March 3 (TASR) – Slovakia auctioned off 20-year government bonds worth €2 billion on Thursday, Finance Ministry State Secretary Radko Kuruc told a press conference on Friday.

Over 120 investors, largely from Europe, showed interest in Slovakia’s first 20-year, euro-denominated benchmark paper. “Demand exceeded €3 billion, which is truly exceptional. The Debt and Liquidity Management Agency (ARDAL) eventually accepted bids totalling €2 billion, while the yield to maturity was below 2 percent,” said Kuruc.

No central or eastern European country has successfully launched a 20-year bond issue worth €2 billion before, said Kuruc, adding that the bond’s launch was preceded by an investor road show involving visits by ministry officials to four European financial centres.

ARDAL director Daniel Bytcanek said that asset management firms, pension funds, insurance companies and banks all bought the bonds. German, Austrian and Swiss investors in particular were avid buyers, as they scooped up close to half the bond issue. British investors also showed keen interest, with “very surprising” demand coming from Italy, said Bytcanek, adding that French, Norwegian and Finnish investors were also among the buyers.