Sept. 30 (Bloomberg) -- Finland is planning to sell more of its existing euro benchmark bonds next quarter as demand for AAA rated securities grows.
“The active investor interest in Finnish government debt outside the euro currency has continued,” the Helsinki-based Treasury said in an e-mailed statement today.
Finland, which didn’t specify the bond it plans to auction, said it will give out further details on the bond auction a week beforehand. The Treasury has completed 91 percent of the estimated long-term borrowing this year.
Investors are snapping up Finland’s bonds as they flee Europe’s debt crisis in search of safer assets. Finland, which boasts the lowest credit default swaps in the euro area, has the second-narrowest yield spread on 10-year debt to German bunds after the Netherlands.
The northernmost euro member is funding its third consecutive budget shortfall with borrowing. The government plans 1.1 billion euros ($1.5 billion) of spending cuts and the same amount in tax increases next year to plug the deficit. Finland’s gross borrowing in 2011 is estimated at 25.1 billion euros, the Treasury said.
--Editors: Tasneem Brogger, Jonas Bergman.
To contact the reporter on this story: Kati Pohjanpalo in Helsinki at email@example.com
To contact the editor responsible for this story: Tasneem Brogger at firstname.lastname@example.org