Serbia could sell Eurobond on foreign markets at 6%-7% yield.

By bne IntelliNews May 31, 2012
Serbia could place Eurobonds on the international market at an annual yield of 6% to 7% under the condition that the current state of its public finances does not deteriorate additionally, Malisa Djukic, an associate at the Belgrade Banking Academy, was quoted as saying by news agency Beta. Djukic told reporters that investors, in particular foreign investment funds, decide on the yield they are ready to accept, considering their risk perception. In March, the state secretary at the finance ministry, Goran Radosavljevic, said that Serbia plans to issue Eurobonds of up to ten years maturity in September at the latest. He added that Serbia already held talks with investors and some of them showed readiness to buy securities at an yield of between 6.6% and 7.5%. The country sold its debut USD 1bn Eurobond in September 2011. The 10-year securities were sold with a 7.25% coupon. Also in March, S&P affirmed its long- and short-term foreign and local currency credit ratings on Serbia at 'BB/B', saying that although the risks from the eurozone economic pressures magnify, the country's recently confirmed EU candidacy will encourage new foreign investment and toughen government's commitment to reform. The ratings' outlook is stable. Serbia was granted an EU candidacy status on March 1.

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