Estonia to increase size of 10-year bonds by €500 million
The Estonian Ministry of Finance is set to increase the size of the 10-year bonds it issued in October 2022 by up to €500 million.
"This is standard practice for bond issuers, in order to flexibly raise smaller amounts from investors," the Ministry of Finance said.
The money raised will be used by the ministry to cover the state budget deficit and replenish the liquidity reserve.
According to the ministry, the transaction will be carried out in the coming days in accordance with market conditions. This means that the interest rate could be higher than it was last year.
Last October, the interest rate on the €1 billion 10-year bond coupon was four percent. The €1.5 billion bond issued two years earlier had a coupon rate of 0.125 percent.
The bond sale is being organized by Barclays, Erste Group and Goldman Sachs Bank Europe.
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Editor: Michael Cole
