Slovenia Yields Drop to 2-Week Low Before Foreign Bond MeetingsLyubov Pronina and Boris Cerni
Slovenia’s dollar bond yields fell to a two-week low before a series of international investor meetings aimed at building market confidence.
The eastern European nation is seeking to avoid following Cyprus as the sixth country using the euro to require a bailout. The government hired BNP Paribas SA, Deutsche Bank AG and JPMorgan Chase & Co. to organize a so-called non-deal roadshow from today, Irena Ferkulj, a spokeswoman at the Finance Ministry, said in an e-mailed statement April 18.
Prime Minister Alenka Bratusek’s government raised twice its target amount at a domestic debt sale last week. The yield on its dollar bonds due October 2022 fell 16 basis points to 5.87 percent, the lowest level on a closing basis since April 8, as of 1:28 p.m. in London.
“The success of the T-Bill auction has really opened up breathing space for Slovenia,” Abbas Ameli-Renani, an economist at Royal Bank of Scotland Group Plc in London, said by e-mail today. “We expect the government to go on a charm-offensive and detail market-friendly reforms ahead of a new bond issue.”
Slovenia may sell three-year or five-year benchmark bonds with a possible size of 1 billion euros ($1.3 billion) or 2 billion euros if it receives positive feedback from investors, according to David Schnautz, a strategist at Commerzbank AG in New York.
The meetings start in New York today, followed by Boston tomorrow, Los Angeles on April 24, San Francisco April 25 and London April 29, according to a person with knowledge of the plans, who asked not to be identified because the information isn’t public.