Serbia sells out EUR 87mn issue of two-year floaters

By bne IntelliNews April 14, 2014

Serbia sold out a RSD 10bn (EUR 86.6mn) issue of two-year Treasury notes at an auction on April 14, the public debt administration said.

The issue was oversubscribed with demand totalling RSD 11.6bn, or 115.7% of the offering. The Treasury sold a total of 1,000,000 T-bonds with a variable coupon, equal to the central bank's reference interest rate (9.5% at present) plus 1.49% annually. Payments dates are April 16, 2015 and April 16, 2016.

Serbia started issuing T-notes with a floating coupon rate in August 2012 in order to offer investors a better protection from rising inflation. At the previous such auction held in March 2014, the Treasury sold RSD 8.9bn, or 88.8% of the amount on offer. The securities had the same variable coupon, equal to the central bank's reference interest rate (also 9.5% in March) plus 1.49% annually.

Serbia plans to sell dinar-denominated debt paper worth a nominal RSD 33bn and EUR 225mn of euro-denominated securities in April 2014. In March, the Treasury sold RSD 49.9bn in dinar-denominated debt papers, 83.1% of the monthly target, and EUR 118.0mn in euro-denominated securities (94.4% of the target).

Related Articles

Angry protesters accuse Serbian government of plotting to destroy Nis airport

Several thousand citizens of Nis, the largest town in southern Serbia, staged their second protest against the planned transfer of Konstantin Veliki Airport from the local government to the central ... more

KKR's United Group to invest €293mn in Serbia within next five years

United Group, a leading multi-play (Pay-TV, Broadband, Telephony, Mobile) operator in Southeast Europe, majority owned by US private equity firm Kohlberg Kravis Roberts (KKR), plans to invest ... more

Serbia’s central bank cuts key policy rate to 3%

The National Bank of Serbia (NBS) executive board decided to cut the key policy rate again on April 12 to 3%. The bank previously cut the rate to ... more