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Ljubljana, 27 June 2025 – Slovenia has successfully raised €1 billion through its first-ever sustainability-linked bond, reinforcing its commitment to climate action and sustainable finance. The 10-year bond, which matures on 2 July 2035, carries a coupon rate of 3.125% and directly ties financial terms to the country’s greenhouse gas emissions targets.
Issued under Slovenia’s Sustainability-Linked Financing Framework, the bond aligns with national and EU climate goals, featuring a performance-based mechanism that adjusts the interest rate depending on progress made toward 2030 emissions-reduction targets.
Two key sustainability targets have been defined:
- A 35% reduction in greenhouse gas emissions from 2005 levels by 2030, failure of which will result in a 50 basis point increase in the coupon rate.
- A 45% reduction by 2030, achievement of which will lead to a 50 basis point decrease in the coupon.
These adjustments will apply from 2024, beginning nine years after the bond’s settlement date of 2 July 2025.
The bond received strong demand from investors, with the order book exceeding €6.5 billion, signalling high market confidence in Slovenia’s climate-linked fiscal strategy. The geographical breakdown of allocations included:
- 29% to the UK
- 20% to Benelux countries
- 15% to Germany, Austria, and Switzerland
- 12% to Southern Europe
- 11% to Slovenia
- The remaining shares were distributed across the Nordics, France, Central and Eastern Europe, and other global markets.
Slovenia’s Ministry of Finance described the issuance as a milestone in broadening the country’s investor base and advancing sustainable capital markets. “This issuance demonstrates Slovenia’s commitment to developing the sustainable finance market and diversifying its investor base,” the Treasury said in a statement.
With this transaction, Slovenia joins a growing number of sovereigns integrating climate performance metrics into financing strategies, setting a precedent for transparency and accountability in environmental commitments.
