CMS is pleased to announce that the firm has acted as a legal adviser for the Debt and Liquidity Management Agency (ARDAL), a government agency responsible for the operation of government debt and liquidity in the Slovak Republic, on the historic first issuance of retail government bonds in Slovakia.
This unique dual-tranche issuance consisted of two types of government bonds intended for the Slovak Republic’s retail market – “INVESTOR”, a two-year bond with a 3.00% annual yield, and “PATRIOT”, a 4-year bond with a 3.30% annual yield. The strong demand exceeded all expectations, with the bonds being sold for a total of EUR 500m in just three and a half days.
The Debt and Liquidity Management Agency mandated five banks, Československá obchodná banka, a.s., Slovenská sporiteľňa, a.s., Tatra banka, a.s., UniCredit Bank Czech Republic and Slovakia, a.s., pobočka zahraničnej banky and Všeobecná úverová banka, a.s., as the lead managers procuring the placement of the bonds on the primary market.
Juraj Fuska, Managing Partner and Head of Corporate/M&A at CMS Bratislava, comments: “We are proud to have been involved in this pioneering transaction. The overwhelming demand and rapid success of the bonds is testament to the thoughtful and effective set-up of the transaction, which we were glad to oversee from a transactional and legal perspective. Due to the unprecedented nature of this project in our country, we were able to make a significant contribution to the overall structuring and execution of the transaction, which we believe will lay the foundation for any future transactions of this type.”
The transaction itself required a change in the legislative environment and all the complex transactional and contractual documentation were uniquely drafted for the transaction.
The smooth cooperation between ARDAL, the lead managers and the Central Securities Depository of the Slovak Republic, with legal advice facilitated by CMS, resulted in the successful execution of this unprecedented deal. It marks a significant milestone in the country’s financial landscape and the central role played by CMS underscores the firm’s standing as a leading law firm in the capital markets sector.
The CMS team was led by Managing Partner at CMS Bratislava, Juraj Fuska, with crucial contributions from associate Martin Melicher (Corporate). Senior associates Zuzana Nikodémová and Martina Šímová, and associate Demian Boška, also played key roles in the execution of the transaction, reflecting their significant contribution to the deal.
