LINIC: INTEREST IN GOVT. BONDS FOUR TIMES HIGHER THAN ISSUE'S VALUE

ZAGREB, Feb 14 (Hina) - The latest issue of Croatian government bonds intended for the European capital market, worth EUR500 million, attracted great interest among investors so the total value of bids was four times higher than the issue's value, or some two billion euros. #L# This was stated by Deputy Prime Minister Slavko Linic upon his return from London, where the bidding for the latest government euro-bond issue was completed after a five-day promotion campaign conducted by a Croatian delegation. The largest part of the issue was subscribed for by "real investors" - investment banks and pension funds, mostly from Germany, Great Britain, the Netherlands and for the first time, Greece. This is also the first issue part of which was subscribed for by investors who exclusively invest into European Union countries' bonds. Deputy Finance Minister Damir Kustrak said that most of the issue would be used to refinance old debts, while some EUR150 million would be invested into the construction of highways. The Croatian delegation, which apart from Linic and Kustrak also included Finance Minister Mato Crkvenac and his assistant Hrvoje Radovanic, presented the latest bond issue in Athens, Frankfurt, Amsterdam and London. This issue should be the government's last bond issue on the European capital market. By the end of the year the government is expected to issue so-called samurai bonds on the Japanese market as well as bonds on the domestic market. (hina) rml