Financial Market

Demand for Slovenian savings bonds exceeds expectations

February 5 (SeeNews) – Demand for Slovenia’s three-year savings bonds issued on February 1 is exceeding expectations, local media reported on Monday, citing financial intermediaries.

The bonds have so far been purchased by small investors who have not yet had a trading account and are venturing into the capital market for the first time, public broadcaster RTV reported.

“The ratio is 30% to 70%. 30% for those who have an open trading account and 70% for those who do not yet have one. So, new clients saw an opportunity in the investment itself, or to get to know the financial market for the first time,” RTV quoted Gal Perhaj, head of the stock exchange brokerage unit of Nova Ljubljanska Banka (NLB) [LJE:NLBR], as saying.

The placement aims to stimulate interest in capital markets and improve the financial literacy of small investors, with the issue to be considered successful if they subscribe for at least 250 million euro ($269 million) of government securities, Slovenia’s finance ministry said last month.

The bonds, to be listed on the Ljubljana Stock Exchange, are sold with the support of NLB, Nova KBM, BKS Bank, SKB Banka and the Ilirika brokerage company. They are available at 249 registration points across Slovenia until February 16 to all natural persons of legal age with a permanent or temporary residence in Slovenia.

The issue, initially scheduled for last year, has been delayed due to revised factors such as the 2023 gross domestic product (GDP) estimate, the inflow of funds under the EU’s Recovery and Resilience facility, liquid budget assets, and the targeted government sector debt level of 69.9% of GDP for 2023.

($ = 0.93012 euro)

Nova Ljubljanska Banka d.d. is among the biggest banks in SEE. You can download our SEE Top 100 ranking here or subscribe to our free Top 100 newsletter here

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