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http://www.mfin.hr/en/novosti/government-says-eurobonds-successfully-issued
Government says eurobonds successfully issued
28 May 2009 Croatia successfully placed its highest ever eurobond issue this week after five years of absence from the international financial market, Prime Minister Ivo Sanader said at the start of a government session on Thursday.
The government decided to issue EUR 750 million in state bonds at 99.675% of the nominal amount and a fixed interest of 6.5%. The bonds will be listed on the Luxembourg Stock Exchange.
Given the circumstances in which they are being issued, the success they have achieved proves that the international financial market has a positive view of Croatia's economic and monetary policy as well as of the prospects of its economy, said Sanader.
He added the Croatian bonds had been successfully issued in conditions when even some European Union countries had no access to international capital.
Finance Minister Ivan Suker said the interest in Croatian eurobonds had exceeded the planned amount by 60%, since the registered demand had been EUR 1.25 billion.
A total of 159 investors from 25 countries have registered the bonds, he said, highlighting the interest shown by small investors.
The bonds were issued with an interest significantly lower than the rates indicated by banks during the preliminary issue, when they revolved around 8%.
The bonds will be paid on June 5 and are due on 5 January 2015, said Suker.
He explained that the funds collected from the issue would be used to reschedule liabilities due this year, such as bonds issued in 2001 in the amount of EUR 200 million, a US$ 80 million debt to the Paris and London clubs, and a HRK 2 billion credit the government took out at the start of the year for current liquidity. The funds will also be used to finance the budgetary deficit.
Suker said the government had not had significant issues in the execution of its budgetary commitments in the first five months of this year and that there had been no significant delays in the payment of salaries, pensions, child's allowances, and other benefits.
