RPT-Slovenia eyes dual-tranche US dollar bond in coming weeks

Fri Feb 7, 2014 3:11am EST

By John Geddie

LONDON, Feb 6 (IFR) - Slovenia is gearing up to issue a dual-tranche US dollar bond, and is looking to raise USD2bn to USD3bn in five- and 10-year maturities, a government source said on Thursday.

The eurozone member, rated Ba1/A-/BBB+, completed a roadshow with investors last week, but did not proceed with an issue due to a sell-off in secondary markets which saw its outstanding 10-year US dollar bonds drop two points.

Having recouped some of those losses, the sovereign may come to the market in coming weeks. It is still considering an option to sell a new five-year bond alongside a reopening of its outstanding 5.5% October 2022 bond, the source said, but that would mean it could only likely raise USD1.5bn to USD2bn.

Slovenia hopes to emulate the success of its last dabble in the US dollar bond market, when it raised USD3.5bn via a dual-tranche five- and 10-year bond issue in May 2013.

It plans to borrow EUR3.5bn in 2014 to finance its budget and to aid consolidation in its ailing banking sector, and may also borrow as much as an additional EUR4.2bn to pre-finance central government debt repayments in 2015 and 2016. The total permitted borrowing, therefore, is EUR7.7bn this year.

Barclays, Goldman Sachs and JP Morgan were mandated to arrange the roadshow in mid-January, ahead of the potential bond issue.

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