ZAGREB, May 26 (Hina) - The first issue of government bonds worth a billion kuna, intended for Croatian institutional investors as well as citizens, was presented in Zagreb Monday.
ZAGREB, May 26 (Hina) - The first issue of government bonds worth a
billion kuna, intended for Croatian institutional investors as
well as citizens, was presented in Zagreb Monday. #L#
On May 22, the Croatian government decided for the first time to
issue long-term, five-year bonds denominated in kuna.
The bonds will be included in the first quotation of the Zagreb
Stock Exchange on May 28. Their fixed annual interest rate is 6.125
percent and the sponsors and chief arrangers of the issue are
Rijecka and Splitska banks.
According to the two banks, around two million kuna worth of bonds
have been issued to Croatian citizens. Ten percent of the issue
refers to citizens and institutional investors, 40% has been
subscribed for by banks, 20% by pension funds, while subscription
for foreign investors has been limited to 30 percent, although
their interest was much higher.
Representatives of Rijecka and Splitska banks said that investing
into kuna bonds was attractive because bonds yielded higher profits
than fixed deposit savings in banks, had a fixed interest rate,
could be sold at any given time and were safe as the party obliged to
pay the capital sum and interest was the state.
(hina) lml sb