The Republic of Serbia yesterday sold eight-year government bonds in the amount of 63.15 billion dinars, announced the Public Debt Administration. This is the third sale of a portion of bonds intended to finance infrastructure projects within the specialized world exhibition EXPO Belgrade 2027.
“On January 18th, 2024, the issuance of eight-year government bonds of the Republic of Serbia, maturing on October 26th, 2031, first issued on October 24, 2023, was reopened. The auction volume was 67,565,860,000 dinars with a coupon rate of seven percent,” announced the Public Debt Administration.
The total demand amounted to 63,284,140,000 dinars.
“A total of 6,314,639 pieces of government bonds were realized, with a nominal value of 63,146,390,000 dinars. The government bonds were sold at a yield rate of 6.15 percent annually, or at a price of 10,675.85 dinars,” stated the Public Debt Administration.
The coupon payment of seven percent will be made annually every October 26th until the maturity date.
First bond sale
Recall that the first auction of bonds intended for financing projects for EXPO 2027 was in October 2023, in the amount of 19.19 billion dinars.
As announced by the Public Debt Administration at the time, on October 24th, 2023, the first auction of a new issuance of eight-year government bonds of the Republic of Serbia, maturing on October 26th, 2031, was held.
The volume of the issuance is 110 billion dinars, the bonds bear a coupon of seven percent, and the first auction announced a sales volume of seven billion dinars.
“The total demand at the auction amounted to 34,872,170,000 dinars. Bids in the total amount of 19,195,310,000 dinars were accepted, which is almost three times more than the planned sales volume, which was seven billion dinars. The auction saw the noticeable participation of foreign investors, indicating their interest in Serbian government securities and their presence in the capital market of the Republic of Serbia,” said the Public Debt Administration in October 2023.
The government bonds were sold at a yield rate of 6.39 percent annually, or at a price of 10,373.02 dinars. Coupon payments will be made annually every October 26th until the maturity date.
Second bond sale
The second auction was held in December of last year.
“On December 5th, 2023, the issuance of eight-year government bonds of the Republic of Serbia, maturing on October 26th, 2031, first issued on October 24th, 2023, was reopened. The auction volume was 90,804,690,000 dinars with a coupon rate of seven percent,” announced the Public Debt Administration at that time.
The total demand at the December auction, as stated in the announcement, was 25,718,730,000 dinars.
“A total of 2,323,883 pieces of government bonds were realized, with a nominal value of 23,238,830,000 dinars,” stated the Public Debt Administration.
The government bonds were sold at a yield rate of 6.30 percent annually, or at a price of 10,502.39 dinars.
