Sustainable Bond Framework slide image

Sustainable Bond Framework

Public Debt Management Strategy Cornerstones in Public Debt Management Strategy 2022-24 Target Smoothening of debt maturity profile and extension of marketable debt maturity Maintaining liquid funds for the next 6-9-month financing needs Risk mitigation via reduced exposure to foreign currency and interest rate risks Progress On course: Average maturity of marketable and total debt extended significantly Achieved Foreign currency exposure Achieved: reduced to zero Interest rate risk On course: on a downward trend, new issuance completed in EUR, fixed rate format only • New Public Debt Management Strategy 2023-2025 Strategically, the international bonds will continue to be the main financing instrument to achieve further extension of yield curve and increase in debt maturity. The domestic market will continue to serve as a complimentary financing source. Focusing on longer-term, fixed-rate, euro denominated issuances to assume low new risk into portfolio. Enhancement of the secondary market functioning. Enhancement of investor relations and expansion of investor base in order to reduce further the cost of debt. Share of international bonds in total debt stock, % Completion and extension of the sovereign bond yield curve 80 60 55 65 64 61 On course: Significant 60 49 improvement; Yield curve extended up to 30-year tenor EMTN since May 2019. New with 30-year tenor in April 2020 50 56 40 20 32 13 14 18 22 24 28 0 2013 2014 2015 2016 2017 2018 2020 2021 2022 Enhancement of investor relations and expansion of investor base On course: higher diversification and larger orderbooks recorded in primary issuances ■Foreign bonds Official loans 53 58 36 25
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