Estonia issues another €280 million bonds
The Estonian government issued €90 million worth of six-month bonds and €190 million worth of 12-month bonds through a competitive auction on Wednesday (September 25).
The average yields to maturity for the six-month and 12-month bonds were 3.172 percent and 2.862 percent, respectively.
They were issued under the short-term bond program approved by the minister of finance in 2020. This framework allows for the repeated issuance of bonds with maturities of up to 12 months, with the cost determined by market conditions at the time of issuance.
The bonds were issued to refinance expiring short-term bonds. This kind of bond is targeted exclusively at professional investors.
In mid-September, the Estonian government issued bonds to private investors. A total of €200 million worth of bonds were issued, with private investors subscribing to €29 million and the remainder taken up by institutional investors. The interest rate was set at 3.3 percent.
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Editor: Huko Aaspõllu, Helen Wright
