Societe Generale issues first long-term bank dinar bond in Serbia

On 3 May, Société Générale bank based in Serbia issued a three-year dinar bond and offered it to a wider circle of investors. This is the first issue of this type made by a Serbian bank and represents a significant step towards developing the dinar financial market and further dinarisation of the Serbian financial system. It is expected that a greater share of long-term dinar sources of bank funding will in time raise the volume of long-term lending in dinars, the National Bank of Serbia (NBS) announced in a statement.

The dinar bond market began to expand only three years ago. Today it offers government dinar bonds of up to five-year maturity. The volume of secondary trading is increasing as well.

The NBS welcomes the issue of the first long-term bank dinar bond in Serbia and expects that other banks, international financial institutions and Serbian companies will follow in the track and resort to the same type of long-term dinar financing.