Investor interest in Estonian government securities remained strong. The final orderbook exceeded €3.5 billion, comprising orders from 104 investors and resulting in the issuance being seven times oversubscribed. The investor base was mainly composed of European banks as well as pension and investment funds.
“The high level of investor confidence in Estonia’s bonds reflects the country’s strong credit reputation and its standing as a reliable and stable investment destination,” said Janno Luurmees, Head of the State Treasury Department at the Ministry of Finance.
The proceeds from the bond issuance will be used to finance the state budget deficit and to supplement the state’s liquidity reserve. In light of the projected fiscal position for the coming years, further government bond issuances can be expected in the future.
The transaction was jointly arranged by Erste Group, J.P. Morgan, and Société Générale, and the bonds are listed on the Dublin Stock Exchange.
