Serbia sells 10-year Eurobond worth $1.2bn amid strong investor interest

By bne IntelliNews November 24, 2020

Serbia’s government said on November 24 it has issued a ten-year Eurobond worth $1.2bn on the international market amidst strong investor interest.

The bond was issued on November 23 following a seven-year pause and will be used for the early repayment of a significant portion of an outstanding debt on a US dollar Eurobond issued in 2011 at a yield rate of 7.50%.

The issue caries a coupon of 2.125% and yield of 2.35%. It also has a final interest rate, the government said in a statement.

The demand was above $6bn placed by more than 200 funds, insurance companies and banks, mainly from the U.S. and the UK.

Serbia also carried out its first-ever hedging via swap operations, swapping liabilities under the Eurobond from the U.S. dollar to the euro, thus achieving a de facto 1.066% coupon rate for financing in euro.

Related Articles

Latvia’s central bank cuts 2021 growth forecast sharply to 2.8%

Latvia’s central bank, Latvijas Banka, has revised its GDP and inflation forecasts. In the light of the latest global economic developments, including the implications of the second wave of the ... more

Wizz Air makes bond debut with €500mn issuance

Wizz Air sold €500mn worth of three-year bonds at an interest rate of just 1.35% on January 13 after receiving more than €2bn of orders from investors, ... more

Slovenia plans new 10-year Eurobond issue

Slovenia’s finance ministry announced on January 4 that it has commissioned several international banks to manage a new 10-year Eurobond issue and increase a 30-year bond issue due in 2050. The ... more

Dismiss