Structural Reforms For Long-Term Development

SLOVGB June 28 and June 68 Deal Review + A ARDAL Slovak Republic EUR 1.5bn Dual Tranche 2028 & 2068 Issue Slovakia impressively extends its benchmark curve to 2068 with a landmark half century bond Key Aspects of the Transaction Terms & Conditions Issuer Issuer Rating Format Amount The Slovak Republic, acting through the Ministry of Finance and the Debt and Liquidity Management Agency (ARDAL) A2 / A+ / A+ (positive/stable/stable) (Moody's/ S&P / Fitch) Reg S, Bearer Following the announcement on Monday, 4th June, of a new 10-year issue with the possibility to add a 50- year tranche, the Slovak Republic ("Slovakia") together with the JLMs decided to opt for a swift execution on the next day. As the investor feedback was very constructive across both tranches supported by a positive market backdrop the group finally proceeded with both tenors While IPTS were set at MS +20bps area and MS +90/+95bps for the 10- and 50-year transactions, respectively, the combined lol book which soon reached over EUR 4.1bn (skewed towards the 10-year line) allowed to go out with a guidance of MS +15bps area and MS +90bps area, respectively Both orderbooks continued to develop very nicely and eventually reached over EUR 3.4bn from over 150 accounts in the 10-years and more than EUR 1.6bn from over 125 investors in the 50-years, respectively Consequently, the final spreads were set at MS +10bps and MS +80bps for the 10- and 50-year transaction, respectively, which implies a small new issue concession in the high single digits for the 10- year and 15bps for the 50-year deal While this milestone deal underlines the utmost trust from the international investor base towards Slovakia as an issuer, the half century bond will serve as a main reference point for sovereign issuers worldwide Distribution by Geography (10yrs) Distribution by Investor Type (10yrs) EUR 1 billion EUR 500 million Trade Date 5 June 2018 5 June 2018 Settlement Date 12 June 2018 12 June 2018 Maturity 12 June 2028 12 June 2068 Coupon 1.000% p.a. fixed Act/Act 2.250% p.a. fixed Act/Act Re-offer +65.6bps (vs. DBR 0.5% Spread vs. DBR Feb-2028) +117.2bps (vs. DBR 1.25% Aug-2048) FR Others 8% 9% GER/ AUT 30% Re-offer Spread vs. +10bps +80bps Nordics 12% Mid-Swaps (MS) Re-offer Yield 1.021% p.a. 2.254% p.a. BeNe CEE Lux 13% UK 18% Re-offer Price 99.801% 99.881% 14% Distribution by Geography (50yrs) Denomination EUR 1 CEE Governing Law Slovak Law Nordics 6% 6% Others Listing Bratislava Stock Exchange 8% ISIN SK4120014150 SK4120014184 IT ES 19% Joint Bookrunners Barclays / Citi / Erste Group / RBI UK 10% Ins/PF 9% Others 2% CB/ Ols 13% AM 38% Banks 38% Distribution by Investor Type (50yrs) CB/ Others Ols 3% 6% Banks 13% GER/ AUT 42% AM Ins/PF 58% 22% キ 23

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