The target nominal amount of the treasury bills is €440 million, Finance Minister Marko Primorac has recently said, noting that the first round of subscription is intended for citizens and the second round, which will last from 9:00 to 11:00 hours on 21 November, is for institutional investors.
The minimum amount to be subscribed to per investor is €1,000. That will be the nominal value of one treasury bill to be obtained by citizens upon its maturity.
This T-bill matures on 21 November 2024 and the annual rate of return is 3.75%.
Croatian nationals who have reached the age of majority and reside in or outside Croatia and foreign nationals resident in Croatia will have the right of purchase in the first round.
One investor can submit only one offer for subscription.
The treasury bills will be bought at a discount, at a price of €963.95, and upon their maturity, citizens will get €1,000 (nominal amount) per treasury bill, which is an annual rate of return of 3.75%.
The bills will be possible to subscribe to at 170 offices of the Financial Agency (Fina) across Croatia.
Treasury bill investment is not subject to income tax, the minister said.
Three reasons for issuing this T-bill
The minister has said that the reasons for issuing retail treasury bills is the fact that interest rates on bank deposits in Croatia lag behind those in other EU member countries, and a wish to increase citizens' participation in public debt, as well as raise the level of their financial literacy.
The Finance Ministry has the possibility to accept a larger or smaller offer than the €440 million, and if the demand is higher, it is willing to increase the nominal amount of the allocation, Primorac said. at a news conference on 7 November.
As in the case with retail bonds, the recommendation for treasury bills is the same - they should be bought by citizens who will not have to sell them but will be able to keep them until their maturity, he said.
Just as retail bonds, this T-bill will also be listed on the Zagreb Stock Exchange as a debt financial instrument.