On October 20, the government issued a dollar bond maturing on October 27 2022. The bond was issued as a bullet bond with a coupon of 0.125 percent. In total dollars 2.0 billion was issued. Proceeds from the issue were swapped to euro 1.7 billion with a fixed rate. The issuance process and the composition of the investors can be seen in the attached press release.
The issue is the government's first bond issue in foreign currency since 2014, and follows a full update of the government's EMTN program. The central government's EMTN issues are normally used to supplement the foreign exchange reserve, but can also – in extraordinary circumstances – be used to finance the central government's domestic expenditure. Yesterday's issuance was to ensure that everything in the issuance process works as it should and that the government has the expected strong and diversified market access in foreign currency funding.
Enquiries can be directed to Thorsten Meyer Larsen on tel. +45 3363 6131.