Serbia will allocate the proceeds from the sale of €500 million in bonds, issued on the international market through a private placement, to a special budget item designated for the modernization of the country’s defense systems.
The private placement was selected as the most efficient financing model under current market conditions. The issue consists of six-year bonds carrying a fixed annual interest rate of 4.75 percent, with the first interest payment to investors scheduled for July next year.
The transaction will be officially settled on July 20, 2026, when the funds are transferred to the state’s account. The full principal will mature on July 20, 2032, under a so-called bullet structure, meaning Serbia will repay the entire principal in a single payment at maturity.
READ MORE:
The issuance was carried out under the Euro Medium Term Note (EMTN) program, a standardized international framework that enables governments to raise funds quickly and flexibly on foreign markets. The transaction was arranged by investment bank Merrill Lynch, which acted as the sole arranger.
The newly issued bonds are expected to be listed on the London Stock Exchange on the settlement date. According to secondary market data, they have already been trading above their face value, indicating investor interest even before the issuance is officially settled.
As the minimum investment threshold was set at €100,000, the offering is a private placement aimed primarily at large institutional investors. The issuance has also been presented as the largest sovereign private placement in Central and Eastern Europe in more than a decade.
MORE TOPICS:
Source: Euronews Foto: ATAImages