Finland issues EUR 3 billion bond

Finland’s AAA credit rating status attracts surplus of offers

print this

According to the Reuters news agency, the Tuesday bond issue by the Finnish government showcased Finland’s good standing in the eyes of investors. Finland issued a EUR 3 billion debt to be matured by 2028.
      “The bond was priced at a benchmark mid-swaps rate plus 28 basis points, down from initial guidance of around 30 basis points, with a 2.874 percent yield”, Reuters reports. The bond attracted offers worth EUR 4.8 billion, which speaks of Finland’s reputation as a reliable issuer.
      "Finland is an extremely rare and sought-after credit," PJ Bye, global head of public sector syndicate at HSBC told Reuters.
     
Within the eurozone bond market the atmosphere is marked by a considerable lack of trust. Nonetheless, Finland has managed to maintain a comparatively strong position among debt issuers.
      In the classification by the credit rating agency Standard & Poor's, Finland is one of the four countries in the highest triple A credit rating status.
      The other three countries are Germany, Holland, and Luxembourg. Several eurozone nations, including France, saw their ratings downgraded two weeks ago.
      Last year the gross value of Finland’s borrowing needs reached EUR 23.4 billion.
      This year Finland will borrow around 20 billion euros.
      At the end of 2011, Finland’s state debt totalled at EUR 79.9 billion. This translates to an increase by EUR 4.5 billion from the year before.


Previously in HS International Edition:
  Finland retains S&P AAA rating (16.1.2012)
  S&P puts Finland and other AAA-rated eurozone countries under observation (7.12.2011)

Links:
  Reuters: Finland basks in Triple A glow as bond flies, 31.1.2012

Helsingin Sanomat