The new bond is due in 2030 with a yield of 1.39% and coupon interest of 1.25%.
The issue was arranged by Erste & Steiermärkische Bank, OTP banka, Privredna banka Zagreb, Raiffeisenbank Austria, and Zagrebačka banka.
The new bond will reschedule a bond due on 5 February in the amount of €500 million, issued in 2019 with 0.5% coupon interest, and a bond due due on 7 February in the amount of HRK 3 billion, issued in 2017 with 2.25% coupon interest.
Marić said interest in the new bond surpassed the target issue amount by 40%, totalling €1.4 billion. Among the investors were pension funds, banks, insurance and investment companies.
“The new issues testifies to Croatia’s good position on the capital market, which is in line with previous issues, and the success of the new issue also reflects Croatia’s upward trajectory among the rating agencies. In two of the three most important agencies we are at the investment grade level, where we belong,” Marić said.
The next steps towards introducing the euro will additionally improve Croatia’s status, notably regarding the additional decrease of the risk premium, which is especially important in the context of the current pressures on the growth of reference interest rates, geopolitical developments and energy prices, Marić said.
The new issue reflects Croatia’s good reputation on the domestic capital market as well as the strength and liquidity of the domestic financial industry, he added.
A €1.25 billion bond issued in 2014 is due in May and a €1 billion bond issued in 2011 in July.
(€1 = HRK 7.529067)
