According to Sven Kirsipuu, Deputy Secretary General at the Ministry of Finance, given the current complex geopolitical and market situation, the issue can be considered successful. ‘Interest by international investors towards Estonian bonds was high yesterday, with the result being the most favourable interest rate possible. In recent months, underlying interest rates and bond spreads have risen strongly, with the challenging market determining a great deal. At the same time, we need to be sure that we have an adequate financial buffer in place to cover state payments prescribed in the budget, both at the end of this year and next year.’
The money received from the sale of the bonds will be used to cover the general state budget deficit and supplement the liquidity reserve. Considering the projected state budget deficit for the coming years, similar issues can be expected in the future. Lead managers of the transaction were by Citibank, Goldman Sachs, and Societe Generale. The bonds are listed on the Dublin Stock Exchange.
