Slovenia to Issue a Second Sustainability Bond
The Slovenian government, which has a credit rating of A3/AA-/A, has started the process of issuing its second 10-year sustainability bond in euros, the country's finance ministry said on January 3.
The anticipated issue's value was not disclosed. At the end of June 2021, Slovenia sold its first €1 billion 10-year sustainable bond. The issue's coupon rate was 0.125%.
According to Slovenia's sustainability bond framework, the proceeds from the sustainability bond will be used to fund public initiatives that contribute positively to environmental and social goals.
The government asked BNP Paribas, Citi, Deutsche Bank, Erste Group, Nova KBM, and UniCredit to organise investor meetings on January 3 to present the bond issue.
BNP Paribas was the structural advisor in the process of updating the sustainability bond framework.
Slovenia is already known as one of Southeast Europe's leaders in green and sustainable finance.
A growing number of governments in the emerging Europe region are issuing green bonds. This comes amid a global boom in green and sustainable bonds in recent years, even as issuance growth has lagged behind investor interest in ESG issues.
Sovereign green bonds have frequently cracked the ice in the Emerging Europe region. Many governments have viewed them as a chance to improve their environmental credentials while also earning revenue.
Poland and Hungary have set the early pace in Central Europe, while Slovenia and Romania have the best track record in Southeastern Europe. Russia, Turkey, Georgia, and Kazakhstan have all made significant issues. Green bonds, on the other hand, are still in their early stages in many countries.