Estonian Government Bonds Are Now Listed on Nasdaq Baltic Market

17.09.2024 RIG, TLN, VLN

Tallinn/Riga/Vilnius, Nasdaq Baltic Market, September 17, 2024 – Nasdaq (NDAQ) announces that bonds issued by the Republic of Estonia have been listed on the Nasdaq Baltic Bond List by Nasdaq Tallinn as of today, September 17.

The Republic of Estonia conducted a public bond offer for the first time aimed specifically to the people of Estonia, providing retail investors with a fixed interest rate and the opportunity to trade the bonds publicly on the local stock exchange.

Up to 2,000,000 bonds, with a total volume of EUR 200 million, were on offer under the bond programme of the Republic of Estonia. The demand for the bonds in the offering reached EUR 821 million, thus the volume of the issue was oversubscribed by more than four times. A total of 28 professional and 7,304 retail investors participated in the public offering. Retail investors subscribed for the bonds in the amount of EUR 29 million.

The nominal value of one bond is EUR 100, and the yearly interest rate is fixed at 3.3% with payments once a year. The bonds will mature on September 16, 2026.

“The fact that the Republic of Estonia finally has bonds available for everyone to buy and sell is a significant step for the Estonian securities market,” said Kaarel Ots, CEO of Nasdaq Tallinn and Nasdaq Baltic Stock Exchanges. “Firstly – Government bonds are the lowest-risk securities. This means that now there is a financial instrument on the Estonian securities market, which should be the first security for every saver and beginning investor to acquire on their investment journey. Secondly – The interest rate of a freely traded government bond is a crucial indicator for investors, which gives an assessment of the country’s riskiness, its governance and security as an investment destination. In short – we now have a real market economic evaluator of our country’s activities.”

Janno Luurmees, Head of the State Treasury Department of the Ministry of Finance: “The start of trading in government bonds marks the successful arrival of a new financial instrument on the Estonian market, which offers a low-risk way to invest your savings. The multiple oversubscription of the offer has created the prerequisites for a solid stock market debut, and now those who did not buy the bonds during the offer or did not receive them based on the allocation decision can buy the bonds.”

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Media Contacts:
Ott Raidla
Nasdaq Tallinn / Nasdaq Baltic Market
Marketing and Communications Manager
ott.raidla@nasdaq.com
+372 5552 4824