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Croatia issues €2 billion Eurobond on international market

Croatian eurobonds

Zagreb

ZAGREB, 5 February 2025 (Hina) – The Ministry of Finance successfully issued a eurobond on the international capital market on Tuesday, with a total nominal value of €2 billion, maturing in 2037.

The bond carries an annual interest rate of 3.25% and a yield of 3.276%, the ministry announced.

In the morning, the Ministry of Finance opened the order book for the new 12-year eurobond on the international capital market, aiming to raise up to €2 billion.

“Despite challenging market conditions, investor interest was exceptional, with more than 300 investors participating. This was further supported by investors who exclusively invest in securities with an A-grade investment credit rating. In addition to strong interest from the international investment community, Croatian institutional investors also showed solid demand. As a result, Croatia was able to secure the latest borrowing at a rate 30 basis points lower than the initially announced price, successfully raising the targeted €2 billion,” the Ministry of Finance stated.

The ministry also highlighted that this represents Croatia’s largest issuance on the international market for such a long maturity period. Furthermore, the achieved margin over the benchmark interest rate is the lowest ever recorded for a 12-year bond.

In addition to financing the general needs of the state budget, part of the funds will be used to repay maturing debt, the statement noted.

It also emphasised that the final terms of the issuance and the level of interest in the order book once again reaffirm investors’ confidence in Croatia’s strong economic outlook and its commitment to responsible fiscal policy.

The joint lead managers for the issuance were Erste Group, IMI-Intesa SanPaolo/Privredna banka Zagreb, ING, J.P. Morgan, and Morgan Stanley.

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