The European Bank for Reconstruction and Development (EBRD) has issued bonds worth RSD2.5 billion, while the demand was for as many as four billion dinars, the National Bank of Serbia (NBS) said on a press conference.
Zoran Petrovic, chairman of the Executive Board of the Raiffeisen Bank, which is the underwriter for the bonds, said that the bank agreed to buy the whole issue if there was no interest from somebody else, and if it exceeded the value of the issue, it would buy “a considerable part.”
The dinar-denominated securities will not be available to the general population, but only to professional investors banks, pension funds and insurers. The money collected this way will be used to provide loans for local firms and local self-governments.
The bonds are due in three years, with a changeable interest rate relying on the BBA Libor rate or a reference dinar interest rate on the Serbian interbank market, plus 0.4 percentage points.
The central bank governor, Jorgovanka Tabakovic explained that the talks on a local currency bond issue started as far back as 2005, but that conditions to make it happen had been met only recently.
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