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

European Union increases humanitarian aid to Syria to €202mn

The European Union announced on May 27 an increase in humanitarian aid to Syria to more than €202mn for this year, SANA reported. The additional funding will ... more

MBH Bank Tier 2 bond sale oversubscribed 3.5 times

Hungary’s MBH Bank has completed a successful €200mn Tier 2 bond issuance amid strong investor appetite. The ten-year notes, callable after five years, are priced with a 6.875% coupon following ... more

Dismiss