By Marta Vilar – MADRID (Econostream) – Slovenia expects to issue a Panda bond this year in the range of RMB2–4 billion, with March 2026 seen as the earliest possible window, though final timing will depend on market conditions, according to Marjan Divjak, Director General of the Treasury Directorate of Slovenia’s Ministry of Finance.

In an interview with Econostream on 20 February 2026 (transcript here), Divjak said that the transaction, first flagged months ago by the finance minister, would proceed only if market conditions proved favorable.

“We will be estimating the funding cost in euros on the after hedging basis,” he said. “If the transaction proves economically justified and supports our diversification objectives, we will proceed with the Panda bond issuance.”

From a preparatory standpoint, March 2026 represented the earliest feasible window, he said, though execution would depend on relative pricing conditions, investor demand and supportive market technicals.

The expected deal size was RMB2–4 billion, he said, and if the inaugural bond was cost-efficient and attracted strong demand, additional issuance could follow.

“However, continuity would depend on relative funding costs compared to euro issuance, as well as the stability and depth of investor demand,” he added. “The objective is to be on the Panda bond market every year.”

Asked about the US dollar market following the currency’s recent depreciation, Divjak described it as deep and liquid, adding that Slovenia aimed to access it periodically when conditions allow.

The US dollar remained “the global currency,” he said, playing a central role in global liquidity dynamics and crisis scenarios. Nonetheless, Slovenia expected 90–95% of its cumulative issuance to remain in euros, he said.

Beyond euros, the Treasury is considering issuance only in US dollars, Japanese yen and Chinese renminbi, according to Divjak.

He said that Slovenia would maintain a presence in digital bond markets and sustainability-linked instruments.

Asked where demand was strongest along the curve, he said the 10-year tenor remained the most consistently attractive segment for investors. “At the same time, we observe selective demand for longer maturities on the reverse inquiry basis,” he added.