EBRD invests €5m in first Tier 3 subordinated bond by Slovenia’s Sava Re

The European Bank for Reconstruction and Development (EBRD) is investing €5 million ($5.52 million) in the inaugural debt capital market issuance of Slovenia’s reinsurance company, Sava Re through euro-denominated subordinated bonds.

With an aggregate issuance amount of €50 million, this is the first Tier 3 subordinated bond by an insurer in both Slovenia and the wider central and south-eastern European region.

The project is set to enhance Slovenia’s capital markets, broaden Sava Re’s investor base, and diversify its funding sources.

It also promotes regional consolidation, which is expected to increase market efficiency and drive long-term growth in the insurance sector.

EBRD’s Head of Non-Bank Financial Institutions, Alexander Saveliev, called the issuance a significant milestone for Slovenia’s capital markets.

Marko Jazbec, Chairman of Sava Re, expressed gratitude for the support from international and domestic investors, recognising EBRD’s role in fostering regional capital market development.

Sava Re, with over 40 years of reinsurance experience, is a key player in the southeast European insurance industry.

Attribution: EBRD

Subediting: Y.Yasser