n1info.rs 
<https://n1info.rs/english/news/serbia-borrows-1-5-bln-by-issuing-eurobonds/>  


Serbia borrows $1.5 bln by issuing eurobonds


N1 Belgrade

2–3 minutes

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Serbia on Wednesday priced another issue of 10Y sustainability eurobonds in 
dollars in the international financial market, while the funds raised will be 
used for sustainable projects in the field of green agenda and socially 
responsible activities, said the National Bank of Serbia (NBS). 

Bonds were sold in the total amount of 1.5 bn US dollars, while investor demand 
during the day was multiple times higher, exceeding 6.5 bn US dollars, the NBS 
said.

“The huge demand of international investors for Serbia’s eurobonds clearly 
testifies to their confidence in the long-term sound and sustainable economic 
indicators of our country. This is the second Serbia’s ESG (Environmental, 
Social, and Governance) issue following the green bond issue in 2021,” claimed 
the Serbian central bank.

It added that, as in the case of “previous issues of dollar eurobonds, taking 
care of public debt sustainability, the Republic of Serbia concluded hedging 
transactions, converting liabilities under dollar-denominated eurobonds into 
euros, in order to reduce both the currency and interest rate risk.”

“By doing so, the Republic of Serbia has reduced exposure to the USD/EUR 
exchange rate risk, but also the country’s de facto cost of borrowing so that 
after the hedging it equals 4.75 percent. This is an outstanding result, having 
in mind the coupon rates achieved recently by comparable countries, with an 
investment grade, such as Romania (5.2 percent for 8Y bonds and 5.625 percent 
for 13Y bonds),” said the NBS.

It added that the Wednesday auction “attracted hundreds of eminent investors 
from all over the world.”



 

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