The European Bank for Reconstruction and Development (EBRD) announced on October 2 a €5mn investment in the debut debt capital market issuance of Slovenian reinsurance company, Pozavarovalnica Sava (Sava Re).

This investment is into Sava Re's euro-denominated subordinated bonds, with a total issuance amount of €50mn.

The bonds carry a fixed annual interest rate of 5.20%, with payments made annually, and are aimed at well-informed investors outside the United States. The bonds will be listed on the Luxembourg Stock Exchange, marking the first-ever Tier 3 subordinated bond issued by an insurer not only in Slovenia but also in the wider central and south-eastern European region.

This bond issuance will help develop Slovenia’s capital markets by broadening Sava Re's investor base and diversifying its funding sources. It also promotes regional consolidation, improving the efficiency and penetration of the insurance market, fostering long-term industry growth.

Alexander Saveliev, head of non-bank financial institutions at EBRD, hailed the deal, saying: “This project marks an important milestone in the history of Slovenia’s capital markets. We are very happy to support Sava Re in this landmark transaction.”

Sava Re, part of the Sava Insurance Group, is one of the largest insurance groups in Southeast Europe. With more than 40 years of experience in reinsurance, it operates in over 100 global markets.

The EBRD, which began its operations in Slovenia in 1992, has invested more than €1.6bn in 109 projects across the country.