LJUBLJANA, March 30 (Xinhua) -- Slovenia issued its first panda bond on Monday, raising 4 billion Chinese currency renminbi (around 560 million U.S. dollars), as it seeks to diversify funding sources and expand access to investors, the Finance Ministry said.
The ministry called the deal a "breakthrough transaction," saying it was the first sovereign panda bond issued worldwide this year and the largest debut sale of its kind by a sovereign borrower.
Panda bonds are renminbi-denominated bonds issued by a non-Chinese entity in China's domestic market. Slovenia said in October it planned to issue panda bonds in 2026 as part of efforts to diversify its sources of financing and broaden its investor base.
The bond carries a coupon rate of 1.89 percent, although the ministry did not disclose its maturity.
Chinese investors bought 99.4 percent of the offering, with Chinese banks accounting for 98.2 percent of the total subscription, underscoring strong demand in China's domestic bond market, according to the ministry.
"With this issuance, Slovenia is strengthening its position as an advanced and innovative issuer in Asian capital markets, while demonstrating a proactive approach to diversifying its financing sources," the ministry said.
Bank of China Limited acted as the lead underwriter and bookrunner, while China Construction Bank Corporation, Industrial and Commercial Bank of China Limited, HSBC Bank China, and Export-Import Bank of China served as joint lead underwriters and bookrunners, the ministry added.
Slovenia plans to raise up to 5.2 billion euros (about 5.98 billion dollars) in new debt this year to meet budgetary needs and refinance maturing obligations.
