ZAGREB, July 3 (Hina) - Croatia issued its first series of Euro-bonds denominated in German marks and worth DM 300 million. About 40 percent of the series had been placed in Germany, Croatian Assistant Finance Minister Hrvoje
Radovanic said.
ZAGREB, July 3 (Hina) - Croatia issued its first series of Euro-bonds
denominated in German marks and worth DM 300 million. About 40 percent
of the series had been placed in Germany, Croatian Assistant Finance
Minister Hrvoje Radovanic said. #L#
The bonds' date due is seven years and their worth has been set up
so that they yield 95 base points higher than bonds of the German
government.
According to Radovanic, trade with the newly-issued Croatian Euro-
bonds is very active, and the agreement on the placement of issue is to
be signed in Zagreb on 25 July.
About 30 percent of the issue has ended up in portfolios of British
investors, while 20 percent of the issue has been bought by Swiss
investors.
The rest has been placed in Benelux countries and Italy.
Besides big institutions as investors, such as investment funds and
banks, private investors have also shown keen interest in the issue.
According to the British business daily Financial Times, some
investors had, however, deemed the price of the bonds as too high.
Representatives of the Credit Suisse First Boston investment bank,
which lead the bond issue together with the German Deutche Morgan
Grenfell bank, stress that the issue was at an advantage because of the
lack of similar bonds on the German market.
As had been stressed at last week's presentation of the Euro-bonds
at European financial centres, resources amassed in this way were
intended for financing the state budget.
Croatia had its first appearance on the Euro-bond market in the
beginning of this year with five-year bonds denominated in US dollars,
whose price had beet set at 80 base points higher than the accordant US
government bonds.
(hina) lm jn
031657 MET jul 97