The first bond, in the nominal amount of €400 million, falls due in 2026 and has a yield of 2.17%, while the second one, in the nominal amount of €800 million, matures in 2032 and has a yield of 3.47%, the Ministry of Finance announced in a statement on its website on Wednesday.
The proceeds will largely be used to refinance a €1 billion bond that falls due on 22 July and to finance the needs of the state budget. The Ministry noted that compared with the refinancing amount, nearly €36 million will be saved in interest annually.
By choosing the mid-and long-term maturity, the Ministry achieved the optimum level of demand on the domestic capital market, covering a wide range of institutional investors, including banks, mandatory and voluntary pension funds, insurance and investment funds, with more than 50 domestic institutional investors participating, the statement said.
Investors’ interest exceeded €1.75 billion.
The Ministry said that the latest issue reaffirmed Croatia as an attractive issuer on the domestic capital market.
The issue was arranged by Erste & Steiermärkische Bank, OTP Bank, Privredna Banka Zagreb, Raiffeisenbank Austria and Zagrebačka Banka and co-arranged by Hrvatska Poštanska Banka.
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