Serbia buys back almost EUR 871 million in government bonds maturing in 2027

The Republic of Serbia has accepted bids for the early purchase of government bonds maturing in 2027, totaling EUR 870.8 million, according to a document submitted to the London Stock Exchange on May 7.

The bonds have an interest rate of 3.125%, maturing on May 15, 2027, and are part of a total issue worth two billion euros. Serbia previously launched a tender for the purchase of up to one billion euros in nominal value of these securities.

As stated in the announcement, the state accepted all valid bids received without proportional reduction, at a price of EUR 1,000 for every EUR 1,000 of nominal value, with the associated accrued interest.

The bond purchase is related to Serbia’s new Eurobond issue on the international capital market, which was completed this week. On that occasion, Serbia issued around three billion euros in three tranches — five-year bonds worth one billion euros with an interest rate of 4.25%, twelve-year bonds worth 900 million euros with an interest rate of 4.875%, as well as ten-year dollar bonds worth 1.25 billion dollars.

The Ministry of Finance previously announced that the funds raised by the five-year bond issue would be used to refinance debt maturing in 2027.

According to the stock exchange announcement, the redemption is expected to be completed on May 8, after which the redeemed bonds will be cancelled. Around EUR 1.13 billion of these securities will remain in circulation.

B. P.

Vlada Republike Srbije

Government of Serbia

London Stock Exchange

government bonds

bond buyout