In order to ensure protection against exchange rate changes, the payments referring to the capital sum and interest rates of the bond will be converted into the euro at the exchange rate of EUR 1 equalling US$ 1.3875, with interest yield in euros at 6.664 percent.
Finance Minister Martina Dalic was today tasked with concluding the agreements on the issuance of this Eurobond.
Last week, the government agreed on selling $1.5 billion of notes in a private placement market in the United States. The coupon rate of the notes is 6.375 percent and the yield is 6.617 percent. The maturity date of the notes is March 24, 2021.
Funds obtained by selling the notes will be used to settle debts due for payment in the coming period, and to fill budget gaps, the ministry officials said.
More than 300 investors sought to subscribe to the Croatian bonds, finance ministry officials said on Monday.