The new 10-year, syndicated notes may be priced to yield about 6.75 percent, the news agency quoted a banker involved in the sale as saying.
Barclays Capital, Citigroup Inc. and JPMorgan Chase & Co. are managing the new sale.
"Croatia raised $1.5 billion from a 10-year note issue in October 2009, priced to yield 7 percent," according to data compiled by Bloomberg.
"The bonds fell for the first time in three days, sending the yield 17 basis points higher to 6.37 percent at 3:35 p.m. in Zagreb, UBS AG prices on Bloomberg show."
The report reads that last month the International Monetary Fund downgraded Croatia's 2010 forecast for gross domestic product from 0.2 percent growth in April to zero percent.
"Croatia"s economy shrank 5.8 percent last year on faltering exports, investments and consumption as well as reduced capital inflows."
"The country"s long-term debt is rated BBB, two levels above non-investment grade, by Standard & Poor"s, and Baa3, the lowest investment grade, by Moody"s Investors Service," the Bloomberg news agency reported.
"The extra yield investors demand to own emerging-market debt over U.S. Treasuries declined for a second day, falling five basis points to 3.33 percentage points, according to JPMorgan"s EMBI+ Index."