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Estonia to issue €1 billion worth of 10-year bonds

View across town from an office at the Ministry of Finance in Tallinn.
View across town from an office at the Ministry of Finance in Tallinn. Source: Siim Lõvi/ERR

In the coming days, Estonia will issue €1 billion worth of 10-year bonds which will be used to cover the budget deficit. The interest rate will be set during the issue.

"The state budget is projected to have a deficit in 2024 and the state will borrow to finance it. The bond issuance will cover about half of this year's borrowing needs, and preliminary indications suggest that investor interest in Estonian bonds remains strong," said Sven Kirsipuu, Ministry of Finance deputy secretary general.

Irina Satsuta, a communication specialist with the ministry, added it is planned to borrow approximately €1 billion with the issue, which is enough to cover the state budget deficit for half a year.

Estonia last issued long-term bonds in June 2023. At that time, the requested interest was 3.62 percent. 

The exact volume and interest rate of the new bonds will be revealed at the time of issue and depend on both market interest rates and investor demand.

Since 2020, long-term bonds have been issued twice, with a total volume of €3 billion. The new issue will raise the total volume to around €4 billion.

The bond issue is organized by Barclays, Citigroup, and Nordea and will take place in the next few days if the market situation allows it.

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Editor: Huko Aaspõllu, Helen Wright

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