Slovenia taps debt market amidst rising interest rates

Slovenia has issued a €1.25 billion sustainability bond to become the first country in the region to tap the bond market amidst rising interest rates.

The issue has a coupon rate of 3.625%, which compares to just 0.125% for the country's first sustainability bond, which was issued in June 2021.

The Finance Ministry described the transaction as successful since demand exceeded €10 billion, and as "strong proof of institutional investor confidence in Slovenia."

Sustainability bonds can be used exclusively to finance sustainability-oriented projects.

The treasury...