Slovenia issues first green bond

The bond, with a coupon rate of 0.125% and yield to maturity of 0.170%, is equal to other sovereign bonds, and will be used to finance or refinance environmental or social projects included in the national budget, the treasury said. [Shutterstock/Monthira]

Slovenia has issued its first sustainability bond, becoming the first central or east European country and only the second EU member state to do so. The €1 billion issue was far oversubscribed.

The bond, with a coupon rate of 0.125% and yield to maturity of 0.170%, is equal to other sovereign bonds, and will be used to finance or refinance environmental or social projects included in the national budget, the treasury said.

There was a demand for over €8.4 billion among more than 200 investors, which the treasury said proved institutional investors’ strong trust in Slovenia.

More than 47% of the buyers are fund managers, insurers and pension funds, more than 35% are banks and almost 8% hedge funds.

The government said last month that by entering the “sustainability” market, Slovenia would pursue the strategic goals of expanding the investor base and opening new distribution channels for the sovereign bond. (Sebastijan R. Maček | STA)

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