Acting as Estonian counsel through international law firm Clifford Chance, we advised Goldman Sachs, Erste Group and Barclays as the joint lead managers in the EUR 500 million government bond issue of the Republic of Estonia.

Successful issue in challenging circumstances

The issue was carried out as a tap issue of the 10-year bonds issued in October 2022 with a total volume of EUR 1 billion, also advised by Sorainen. After the tap issue, the total aggregate volume of bonds is EUR 1,5 billion. The coupon interest rate for the bonds is 4% per annum. The bonds are listed on the Dublin Stock Exchange.

According to the Minister of Finance Mart Võrklaev, taking into consideration Estonia’s high credit rating, the level of interest rates on bonds of other similar countries, and the liquidity of Estonian bonds in the secondary market, the issue can be considered successful in the current difficult circumstances.

The capital raised is used by the Ministry of Finance to cover the state budget deficit and supplement the liquidity reserve.

Our services and project team

We advised the clients on all local law matters throughout the transaction. This included reviewing the offering circular and other transaction documentation and issuing a legal opinion on the transaction.

Our client team was led by partner Kätlin Krisak, supported by associate Oliver Ämarik.