By Laura Contemori – ROME (Econostream) – The Ministry of Finance of the Slovak Republic raised CHF700 million in a triple-tranche Swiss franc bond transaction on Wednesday, marking its second return to international capital markets this year and its largest-ever CHF-denominated sovereign offering, according to the Debt and Liquidity Management Agency (ARDAL).

The transaction comprised CHF355 million of 0.6850% notes due May 2029, CHF185 million of 1.0525% notes due May 2032 and CHF160 million of 1.4050% notes due May 2036.

“This transaction marks the Slovak Republic’s successful return to the Swiss market following its April 2024 issuance, and only its third appearance in the Swiss franc market, after an 11-year absence prior to that transaction,” the Slovak Republic said in a statement.

“[T]he deal marked the largest CHF syndicated sovereign issuance since 2012, the first CEE CHF sovereign transaction since the issuer’s last deal, and the Slovak Republic’s largest‑ever CHF offering,” it added.

The Slovak Republic said the transaction helped diversify its investor base and attracted broad participation, with more than 100 line items.

The three-year tranche was priced at SARON mid-swaps plus 47bp with a yield to maturity (YTM) of 0.6850%, the six-year tranche at SARON mid-swaps plus 68bp with a YTM of 1.0525% and the 10-year tranche at SARON mid-swaps plus 83bp with a YTM of 1.4050%.

According to the investor breakdown, asset managers accounted for the largest share of allocations across all tranches, followed by banks and bank treasuries.