Serbia sells seven-year Eurobond of USD 1.5bn, yielding 5.15%.

By bne IntelliNews February 18, 2013
Serbia placed a seven-year Eurobond worth USD 1.5bn on Thursday, Feb 14, yielding 5.15%, the finance ministry said in a statement. Thus the country raised two thirds of the borrowing it plans to seek on the international bond market in the first half of 2013. Demand was three times higher than the amount on offer, which according to the ministry indicates the big confidence of the foreign investors in the economic and public finances reforms carried out by the Serbian government. The bonds carry an interest rate of 4.875%. A total of 148 financial investors participated in the sale as most of them were from the US, the UK and the United Arab Emirates. Serbia last sold a five-year Eurobond worth USD 750mn, yielding 5.45% in mid-November and a 10-year Eurobond worth USD 1bn at a 6.625% interest at end-September, securing budget financing for the first half of 2013. Finance minister Mladjan Dinkic told IntelliNews in January that Serbia plans to borrow EUR 2bn worth of bonds abroad in the first half of 2013, targeting interest rates below 5%. In addition, the country is in talks with Russia on a USD 1bn loan for budget support. The ministry plans to use part of the proceedings from the Feb 14 issue to refinance older and most expensive debts. In 2011, the government sold a ten-year Eurobond of USD 1bn at a higher yield of 7.25%.

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