(Repeats story from Thursday)
* Slovaks sell 1 bln euros worth of the bonds, as planned
* Books close, guidance narrowing to mid-swaps plus 105 bps
* Demand 1.34 bln euros, below last April's syndication
(Adds amount, demand, quotes, details, background))
BRATISLAVA, April 14 (Reuters) - Slovakia sold 1.3 billion
euros ($1.44 billion) worth of a benchmark nine-year government
bond on Thursday, in line with its target but demand was capped
by market worries about the euro zone debt crisis.
The euro zone country closed the books in a tap issue with
final guidance narrowing to mid swaps plus 105 basis points,
from an initial range of 105 to 110 basis points, the agency
said.
The Debt and Liquidity Management Agency (ARDAL) said total
demand for the bond <SK270420214=> reached 1.34 billion euros,
compared with 2.0 billion euro demand at a syndicated sale of
the same maturity last April. Slovakia has sold 230 million
euros worth of the paper in two domestic auctions since then.
"Demand was appropriate to the market situation, markets are
overpriced, reacting to the euro zone's debt crisis and numerous
information, like rumours about Greece," Daniel Bytcanek, the
head of ARDAL, told Reuters.
Growing market speculation that Greece will have to
restructure its debt triggered a surge in Greek borrowing costs
on Thursday. []
Slovakia, in a syndicated sale last April sold 1.5 billion
euros of the bond, maturing on April 27, 2020 and carrying a 4.0
percent coupon at mid-swaps plus 80. []
Risk premiums sought by investors to hold the paper stood at
137.0 basis points (bps) over corresponding German Bunds on
Thursday, according to Reuters data, compared with Italian paper
standing at 124.3 bps over German Bunds, Spanish paper at 178.9
bps and Portuguese paper at 588.6 bps.
Slovakia has sold 3.71 billion euros worth of bonds and
treasury bills so far this year, including Thursday's tap.
Thursday's sale was the second syndicated offer this year,
following 1.25 billion euros sold in a tap of 2016 bonds
<SK240216213> in February. []
BORROWING SET TO FALL
Slovakia, facing no immediate refinancing pressure and with
a debt level that is about half the European Union average,
plans to ease its gross borrowing in bonds and treasury bills to
7.7-8.5 billion euros this year, from 9.5 billion euros in 2010.
"Our refinancing position is sound, overall we have no
problems and I do not expect any surprises," Bytcanek said.
Tomas Kapusta, head of ARDAL's debt management department,
told Reuters earlier this month that the agency planned to open
a new issue this autumn, probably with a seven or 10-year
maturity.
Kapusta said the all planned auctions were aimed to cover
need to finance the government deficit and possible pre-finance
for the next year. []
The centre-right coalition of Iveta Radicova, which came to
power last July, has pledged to cut Slovakia's fiscal deficit to
4.9 percent of gross domestic product (GDP) this year, from 7.8
percent in 2010.
The International Monetary Fund said on Tuesday that
Slovakia's consolidation plan was credible and appropriate,
predicting sound growth for the export-reliant economy in the
medium term. []
Ratings agencies Standard & Poor's and Fitch have Slovakia
at A+ and Moody's at A1, with all three holding a stable
outlook.
Barclays Capital [], Deutsche Bank <DBKGn.DE>, ING
<ING.AS> and Slovenska Sporitelna, unit of Erste Bank <ERST.VI>
were lead managers for Thursday's tap issue.
(Reporting by Martin Santa; Editing by John Stonestreet and
Susan Fenton)
