The Estonian government has issued EUR 1bn worth of bonds to cover the state budget deficit and to provide more liquidity, ERR reports. The bonds mature in May 2036 and carry a yield to maturity of 3.609%. More than 100 investors, mostly banks, pension funds, and European investment funds, subscribed to over EUR 2.2bn in bonds. This was the first time that the government issued bonds under Estonian law, ERR reported. The bonds will be listed on Nasdaq’s Tallinn Stock Exchange. The Finance Ministry forecasts that the state budget deficit will reach 4.6% of GDP in 2027, and the government expects to issue more bonds in the future. Estonia issued long-term bonds on the international capital market in October 2025 as well.
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