Exactly two years ago, Serbia issued a “green bond” for the first time, worth one billion euros, under extremely favorable conditions – with a coupon rate of one and a yield rate of 1.26 percent, with a maturity of seven years.
However, we can only remember that for us “the most ideal moment on the global capital market” – because that same bond on the secondary market today has a yield of six percent, points out Momentum Securities chief broker Nenad Gujaničić.
The Government of Serbia, as announced in the Official Gazette, formed an Interdepartmental Working Group for the preparation, drafting and implementation of a framework document for the issuance of green and sustainable social bonds of the Republic of Serbia on the international financial market.
The task of that working group is to provide all the necessary information and documentation for the development of a framework document for the purposes of issuing green and sustainable social bonds on the international financial market, then effective cooperation with advisers in the process of development of the framework document, as well as to evaluate and select projects that will is financed from funds from the issue of green and sustainable social bonds and manages the funds of the issue.
Once a year, it should report to the Government of Serbia and investors on the implementation and use of funds after the issuance of green and sustainable social bonds on the international financial market.
The question is how much work this interdepartmental group will have until the end of the year – and we should also keep in mind that the circumstances on the debt market have changed so much since 2021 that, viewed from the point of view of the cost of borrowing, it doesn’t matter whether we broadcast “green”, “social” or “ordinary” bond.
