intention to issue new notes ("Notes")
up to the total maximum nominal amount of the entire issue of 2,300,000,000.00 HRK ("Total Maximum Nominal Amount"), in one or more tranches, with an unconditional and irrevocable guarantee of the City of Zagreb for all monetary obligations of the Issuer towards the holders of the Notes, which Notes will be offered on the capital market in the Republic of Croatia in accordance with the Capital Markets Act (Official Gazette of the Republic of Croatia nos. 88/2008, 146/2008, 74/2009, 54/2013, 159/2013, 18/2015, 110/2015; the "Capital Markets Act"). All tranches will make part of one integral issue up to the Total Maximum Nominal Amount, with the same maturity, interest rates and other conditions.
The proceeds of the Notes will be used for: (i) early redemption and/or repayment of the existing notes of the Issuer issued in 2007 (EUR 300,000,000.00, 5.50%, due 2017, ISIN: XS0309688918), while the Issuer may, between termination of the process of early redemption of Notes and the final maturity of the Notes (10 July 2017), use such proceeds to invest the available funds in strictly purpose linked uses; (ii) any amounts which may remain after settlement of obligations under the existing notes may be used to finance capital projects of the Issuer.
Expected duration of the Notes is 7 years as from the first tranche issuance date. Yield until maturity, interest rates and the price of the Notes will be determined at the time of the pricing of the Notes. Interests will be paid annually. Number of tranches, the nominal amount of each tranche, as well as the total nominal amount of the Notes, price and other terms and conditions of the Notes will be determined by the Issuer.
The Issuer has hired, for the purpose of intended issue of the Notes and their listing on the Zagreb Stock Exchange, Privredna banka Zagreb d.d. and Zagrebačka banka d.d., as joint managers, who will organize a series of meetings with interested investors in the Republic of Croatia. Expected time of issue and number of the tranches will depend on the market conditions and decision of the Issuer.
In accordance with Article 342 Paragraph 1 Item 4 of the Capital Markets Act, the Issuer will not publish a prospectus for issue of the Notes nor a prospectus for listing of the Notes. However, an information memorandum will be available to interested investors on internet site of the Issuer ( http://www.zgh.hr/aktualnosti-10/investitori/2370 ).
It is the intention of the Issuer to issue first tranche of the Notes up to the maximum amount of HRK 1,800,000,000.00 (the "First Tranche"). The Issuer may issue, but is not obliged, after the First Tranche, further tranches of the Notes up to the Total Maximum Nominal Amount, which will all form a single issue of the Notes together with the First Tranche. In the event of any potential further tranches, The Issuer will timely publish addendum to the Information Memorandum in which it will state the conditions of the offer of each such further tranche of the Notes.
The general public and the investors will be timely notified on all material matters concerning the First Tranche of the Notes as well as any further tranche of the Notes and their listing on the Official Market of the Zagreb Stock Exchange.
This notification is not and may not be deemed as an offer to purchase the Notes, nor as an advice or recommendation for trading with any existing or future security instrument of the Issuer.
Source of information:
Zagrebački Holding d.o.o.
Ulica grada Vukovara 41, Zagreb
Contact:
Investors relations
Tomislav Jurić
tel. +385 1 6420-888
e-mail: tomislav.juric@zgh.hr
web: www.zgh.hr
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