Slovenia plans to issue two benchmark bonds worth a total of 3 billion euros ($3.94 billion) this year to finance the budget and existing debt, the head of treasury at the finance ministry Bostjan Plesec told Reuters. He said another two bond issues with a joint value of 2 to 2.5 billion euros can be expected in 2012 while the country is likely to issue one benchmark bond per year in 2013 and beyond.
The first 2011 syndicated bond issue worth 1.5 billion euros and with maturity of 10 or 15 years is due in January, after the country earlier this week mandated Barclays Capital, Deutsche Bank, Goldman Sachs, HSBC and Nova Ljubljanska Banka as joint lead managers for the issue. "We decided to issue the bond early in the year to use good conditions on the market after the situation regarding Ireland calmed down," Plesec said in an interview on Friday.
"January is usually a good month also because a lot of bonds expire then, coupons expire, there is a lot of money on the market, insurers get fresh premiums," he added.The second bond issue this year, which is due by the end of September, is also expected to have a maturity of 10 years or more. The government is also considering repurchasing some of a 1 billion euro 3-year bond issue which expires in February 2012 in order to reduce the pressure of refinancing on the budget at the time of its expiry.
"It would be ideal if we would manage to repurchase some 30 to 40 percent of that bond this year," said Plesec, adding the time of the possible repurchase has not been set yet. He said the first bond issue in 2012 was also likely to take place in January that year. Slovenia has a total declared financing need for 2011 of 3.16 bln euros.
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