The Ministry of Finance successfully issued maturity bonds in 2027 and 2034 in the total amount of EUR 2 billion, confirming the high interest of investors

The Republic of Croatia, represented by the Ministry of Finance, has successfully implemented the issuance of bonds on the domestic capital market, attracting great interest from both natural persons and institutional investors.

The Ministry of Finance successfully issued maturity bonds in 2027 and 2034 in the total amount of EUR 2 billion, confirming the high interest of investors
Photo by: Domagoj Skledar/ arhiva (vlastita)

The Republic of Croatia, through the Ministry of Finance, has successfully issued bonds on the domestic capital market. The bonds maturing in 2027 have a nominal value of 750 million euros, and the bonds maturing in 2034 have a nominal value of 1.25 billion euros.

Subscription for individuals for the bonds maturing in 2027 was open from July 1 to July 8 until 11:00 am. During this period, interested citizens could subscribe through the branches of the Financial Agency or via the Ministry of Finance's digital platform E-RIZNICA.

Data on subscription and payments by individuals for bonds maturing in 2027:
Total subscription amount -> 164,735,292 euros
Total payment amount -> 158,292,941 euros
Number of investors who subscribed -> 6,699
Number of investors who subscribed and paid -> 6,457
Average payment amount -> 24,514.94 euros

Second round of subscription for institutional investors
The subscription book for institutional investors for the bonds maturing in 2027 and the bonds maturing in 2034 was opened on July 10, 2024. Interest in the bonds maturing in 2027 in the second round amounted to 2.12 billion euros, while total interest (including the first round) reached 2.28 billion euros. For the bonds maturing in 2034, interest amounted to 1.589 billion euros, dominated by pension funds and commercial banks.

The yield to maturity for the bonds maturing in 2027 is 3.30%, with an equal annual interest rate. For the bonds maturing in 2034, the yield to maturity is 3.60%, with an annual interest rate of 3.50%.

The high level of interest allowed the issuance under favorable market conditions, confirming the status of the Republic of Croatia as an attractive issuer on the domestic capital market.

The issue date and inclusion of the bonds in the Central Clearing Depository Company systems is July 12, 2024. The bonds are expected to be listed on the Official Market of the Zagreb Stock Exchange by July 15, 2024.

The main agents of the bond issuance are Erste & Steiermärkische Bank d.d., Hrvatska poštanska banka d.d., OTP banka d.d., Privredna banka Zagreb d.d., Raiffeisenbank Austria d.d., and Zagrebačka banka d.d.

Creation time: 11 July, 2024
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