Serbia Sells Bonds Worth RSD 63.15 Billion

Yesterday, the Republic of Serbia realized the second re-opening (the third issue in total, after the initial one, which was held on October 23, 2023) of 8-year dinar-denominated bonds (whose maturity date is 2031), with an extremely high demand from both local and international investors, announced the Cabinet of the Governor of the National Bank of Serbia (NBS).

– Thanks to the remarkable attractiveness that the dinar securities caused and the nearly all-time high demand from investors, the realization at today’s auction, when bonds worth RSD 63.15 billion were sold at the nominal value, is the biggest ever in an issue of dinar-denominated bonds of the Republic of Serbia – the press release says.

The NBS says that this practically means that, above all expectations, with yesterday’s auction, after three primary sales, nearly the entire value of the issue of the reference eight-year bonds was realized (the value of the issue is RSD 110 billion, whereby, after three auctions – in October and December 2023 and the new one – RSD 105.6 billion, or 96% of the nominal value of these bonds – has already been sold).

Said securities were issued at yesterday’s auction at the yield rate of 6.15%, which is 15 base points (0.15 percentage points) lower than the rate achieved at the previous auction in December and 24 base points more favorable than the rate realized at the initial issue at the end of October 2023.

Said lowering of the yield rate with each auction, especially considering the globally increased interest rate, is another indicator of the great interest of investors in investing in dinar-denominated bonds of Serbia and reflects their readiness for investments, under the conditions which are favorable for the Republic of Serbia as the issuer, the press release says and adds that the interest in the purchase of long-term dinar-denominated bonds was shown by over 20 different investors.

Direct participation of foreign investors in yesterday’s auction alone amounted to around 40%, and the amount of the investments of non-resident investors was the highest in the past nine years, the press release says.

Narodna banka Srbije Beograd

NBS

auction of government bonds

issue of reference bonds

8 year dinar denominated bonds