News Column

Serbia sells EUR 86mn in two-year bonds with floating interest rate

February 12, 2014



Serbia sold RSD 9.9bn (EUR 85.5mn) worth of two-year Treasury notes at an auction on February 11, equalling to 99.32% of the initial offer, the finance ministry's Treasury department said.

Demand totalled RSD 12.2bn, or 121.9% of the offering. The Treasury sold a total of 993,100 T-bonds with a variable coupon, equal to the central bank's reference interest rate (9.5% at present) plus 1.49% annually. The notes mature on February 13, 2016.

Serbia started issuing T-notes with a floating coupon rate in August 2012 in order to offer investors a better protection from rising inflation. At the previous such auction held in November 2013, the Treasury sold RSD 4.9bn, or just 48.6% of the amount on offer. The securities had a variable coupon, equal to the central bank's reference interest rate (10% in November) plus 2.19% annually.

Serbia plans to sell dinar-denominated debt paper worth a nominal RSD 46bn and euro-denominated securities worth EUR 50mn in February 2013. In January, the Treasury sold RSD 22.7bn in dinar-denominated debt papers, 98.9% of the monthly target, and EUR 50mn in euro-denominated securities (100.0% of the target).


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: IntelliNews - Weekly Reports


Story Tools