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Press release: Most successful Eurobonds issuance so far

Press release: Most successful Eurobonds issuance so far
Published date 12.04.2018 20:36 | Author PR Service

Ispis Print

Vienna, Austria (12 April 2018) -- Montenegro has successfully issued EUR 500 million worth of Eurobonds on international market at an interest rate of 3,375% and under a maturity period of 7 years. This is the sixth and most favourable transaction so far in terms of maturity and price, which attracted the attention of more than 160 international investors from the USA, Europe and Asia. 

The high demand, three times higher than the offer, allowed the Ministry of Finance to significantly improve the terms of sale during trading, significantly advance sales conditions and lower the interest rate in relation to the previous issue of Eurobonds, thus creating significant savings based on interest cost and securing relaxed repayment of liabilities in the time to come.

Of the total amount, EUR 362 million is intended for the refinancing of Eurobonds issued in 2014, 2015, and 2016, of which EUR 110.8 million of Eurobonds will mature in 2019, EUR 178.7 million of Eurobonds will mature in 2020, and EUR 72.5 million in 2021. The remaining amount will be used to create a budget reserve in order to repay the debt in the next year.

By pursuing a responsible fiscal policy, the Government has managed to significantly reduce the price of bonds, which will contribute to the reduction of the interest cost in the state budget and allow this savings to be used for remedying the budget deficit. 

The Ministry of Finance expresses satisfaction with the transaction, not only because of the extremely favourable terms of the Eurobond issuance, but also because of the fact that the market reaction is a direct consequence of the growth of investors’ confidence in the fiscal and financial recovery of Montenegro. We are hopeful that today’s success, as well as the continuous support of the IMF and the World Bank, will result in the increase in Montenegro’s credit rating.