Croatia raises €1.25bn from 10-year Eurobond

Croatia raises €1.25bn from 10-year Eurobond
By bne IntelliNews April 14, 2022

Croatia raised €1.25bn from a new 10-year Eurobond with Citi, Erste Group, JP Morgan and Morgan Stanley being joint agents, the finance ministry said in a statement.

This is the first Eurobond issue from Croatia this year. Prime Minister Andrej Plenkovic commented that the sale of the issue showed investors’ trust in the country despite challenging market conditions caused by the war in Ukraine and surging inflation.

“The terms we achieved confirm the status of Croatia as an attractive issuer. This also proves the strong confidence of investors in the quality of Croatia’s debt on the international market, and this has led to the fact that Croatia has paved the way for the euro-bond issuance for other countries in the region,” Plenkovic told his ministers.

The Eurobond carries an annual coupon of 2.875% and yields 2.975%. It was issued on April 13, 2022 and will mature in 2032.

Investors from US, UK, Ireland, Germany, France, CEE, Switzerland and others placed offers worth €3bn.

The funding raised through the new issue will be used for budget spending, including refinancing of an existing €1.25bn Eurobond maturing on May 30, 2022, which has an interest rate of 3.875%.