Business

Erste Bank Serbia raises 3.5 billion dinars via bond issue

Erste Bank’s Serbian division has raised 3.5 billion dinars (29.64 million euros) via the sale of 350,000 two-year bonds. The bonds have a variable yield of the three-month Belgrade Interbank Offered Rate, which currently stands at 3.02 per cent, plus one per cent, the bank said in a statement.

The proceeds will be used for the financing and improvement of its operations with private and corporate clients.

One of the largest institutional investors in the bonds was the European Bank for Reconstruction and Development (EBRD), which subscribed to 14 per cent of the offer, 560 million dinars. It is the bank’s first investment in a local currency bond in the country.

Zsuzsanna Hargitai, EBRD director for the Western Balkans, said: “We are pleased to support Erste Bank’s local currency bond issue. This investment confirms our strong committment to the development of the local capital market and the use of the local currency dinar in the domestic financial system.”

Slavko Carić, CEO of Erste Bank Serbia, added: “Apart from ensuring stable and long-term sources of financing in domestic currency and further diversification of the source of funds of the Bank, we have shown that there is great interest in investment in corporate securities in dinar, which is extremely important for the further development of the domestic capital market.”

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