The ministry opened the subscription book for the new 12-year Eurobond this morning.
"Despite challenging market conditions, investor interest was exceptional, with over 300 investors participating. This was further supported by investors who exclusively invest in securities with an 'A' investment-grade credit rating. Alongside strong interest from the international investment community, Croatian institutional investors also showed solid interest. This enabled Croatia to secure the latest borrowing at 30 basis points below the initially announced price and to raise the targeted €2 billion," the ministry said.
It added that Croatia has thus executed its largest issuance on the international market with such a long maturity period, and the achieved margin on the reference interest rate represents the lowest margin ever obtained for a 12-year maturity.
In addition to financing the general needs of the state budget, part of the funds will be used for debt repayment upon maturity, the ministry said. It assessed that the final terms of issuance and the level of interest in the subscription book once again confirm investor confidence in Croatia’s robust economic outlook and its commitment to responsible fiscal policy.
The joint issuing agents were Erste Group, IMI-Intesa SanPaolo/Privredna banka Zagreb, ING, J.P. Morgan, and Morgan Stanley.