BRATISLAVA, August 22, (WEBNOVINY) — Slovakia is selling more government bonds, this time worth of over EUR 100 million. In Monday’s auction of the bond maturing in 2020, the Finance Ministry’s Debt and Liquidity Management Agency (ARDAL) accepted bids of EUR 101.6 million while securities worth EUR 22 million will end up in the hands of foreign investors. The overall demand in the auction reached EUR 180.6 million while bids from foreign investors amounted to EUR 48 million.
The accepted interest rate represented 4.3435 percent p.a. at the minimum interest rate of 4.2640 percent p.a. and the maximum interest of 4.4097 percent p.a. The demanded average interest was 4.3963 percent p.a. with the minimum at 4.2640 percent p.a. and the maximum at 4.5000 percent p.a.
This year, Slovakia has sold securities for over EUR 1.8 billion in thirteen government bond auctions. Moreover, EUR 200 million was issued into the portfolio of the Finance Ministry. In addition to this, ARDAL has sold government bonds from the series No. 213 and 214 in a syndicated auction in the total value EUR 2.25 billion. About a half of Slovakia’s debt so far of EUR 2 billion, has been refinanced by foreign investors this year.
Last year, ARDAL raised EUR 7.094 billion in bond sales to cover the state debt and to provide liquidity. This represented a significant increase from the EUR 4.208 billion obtained in 2009. The increase was caused by a higher need to refinance the state budget deficit. Last year’s issues also included EUR 3.5 billion syndicated sale of two issues of benchmark bonds from April and October. The agency sold T-bills worth EUR 2.421 billion last year, too, up from EUR 1.259 billion a year ago.
SITA
