Croatia Issues Kuna Bonds

The Ministry of Finance of the Republic of Croatia issued ten-year bonds for the domestic capital market for 2.5 billion kuna.

Bond issuing is arranged by Erste&Steiermaerkische Bank, PBZ, RBA, Societe Generale – Splitska Bank and ZABA as mutual leading bond agents and sponsors. Into bank syndicates at the primary market, HPB and HYPO Alpe-Adria-Bank are involved as co-arangers.

The capital will be paid in full amount

The interest rate of bonds is 4.750% a year, yield to issue is 4.91%, the price is 98.748%, and the date of bond issue is February 8, 2007. The bond capital is due February 8, 2017 and it will be paid in full amount. The interest rate will be paid semi-annually, Poslovni dnevnik reports.

Bonds placed to institutional investors

Bonds will be placed to the first quotation (Official market) at Zagreb Stock Exchange as well as in depository, clearing and settlement of Central Depository Agency. Bond issue is almost in full placed at the domestic market of institutional investors whose market demand for new bonds is satisfied by total offered issued amount.