'HZZO' ISSUES BONDS

ZAGREB, July 18 (Hina) - The Croatian Institute for Health Care (HZZO), on Monday issued bonds, worth 222 million Euro, after means were paid for them. The bonds were issued a week after a contract was concluded on their registration with eight banks. This represents the first step in bids to settle the financial situation in public health, said the Zagrebacka Banka, that was the agent for the issuance and the entity which arranged the entire job. The Zagrebacka Banka was helped by Hypo Alpe-Adria Bank in this job, whereas senior leader managers were Trgovacka Banka and Varazdinska Banka, and other leader managers were Raiffeisenbank Austria, Dalmatinska Bank and Bank Austria Creditanstalt Croatia and 'Hrvatska Postanska Banka' (Croatian Postal Bank). The bonds were paid at the price of 99.88 percent of their nominal value. Since yesterday they have been included in the services of the Depository and services of the Central Depository Agency. The bonds are likely to be added to the Quotation I of the Zagreb Stock Exchange by 24 July this year. They are issued for the four-year-long period and the maturity date is on 19 July 2004. The fixed interest rate is 8.5 percent annually, and will be paid every six months (in January and July), equivalent to the amount of kuna. The bonds represent the direct, unconditional and priority obligation of the HZZO, and the payment is ensured by the Government that gave its guarantee on 11 July 2000. (hina) ms