The resignation of four ministers in the North Macedonia government, including the justice minister, means the sovereign has had to cancel its €600m four-year bond that it sold on February 8.
The settlement date was February 15, but the resignation of especially the justice minister two days before, and with no new appointment in place, meant the bond sale had to be pulled.
A statement said that: “Due to the procedure of election of new ministers in government of the Republic of North Macedonia, the Assembly received and accepted resignations of four ministers on 13 February 2023, including the Minister of Justice. An opinion from the Minister of Justice is a mandatory legal precondition for the issuance of the €600m 6.250% notes due 2027.
“As at the issue date a new Minister of Justice has not been appointed and so the Republic of North Macedonia has to cancel the issuance of the notes at this time. They look forward to re-engaging with investors in the future.”
The February 2027 bond priced at a yield of 6.5%, with books of around €1.6bn. North Macedonia is rated BB– by S&P, with a stable outlook, and BB+ by Fitch with a negative outlook.
The lead managers were Citigroup, Deutsche Bank, Erste Group and JP Morgan. The sovereign last issued in 2021.