Serbia Achieves Historic Success in the Capital Market

On January 23, 2025, the Republic of Serbia achieved a significant milestone by issuing its first ten-year dinar-denominated bond on the domestic market. This bond, maturing on July 27, 2035, set a new record in demand, surpassing the planned issuance volume.

Key Facts About the Issuance:

• Issuance Volume: 120 billion RSD.

• Raised Funds: 111.33 billion RSD at an annual yield rate of 5.25%.

• Total Demand: 157.97 billion RSD, 31% higher than the issuance volume.

• Bond Price: 10,000 RSD per bond, with semi-annual coupon payments.

Record Demand and Interest from Foreign Investors

The auction held on January 23 attracted significant interest from foreign investors, who accounted for over 40% of the total participation. This strong demand highlights the trust in Serbia’s capital market, particularly for long-term securities.

Significance for Serbia's Economy

• Attracting Investments: The large issuance volume and strong foreign investor interest will enhance the liquidity of the capital market.

• Debt Stability: Nearly 30% of public debt is denominated in the local currency, contributing to financial stability and reducing reliance on external financing.

• International Credibility: The results of this issuance reaffirm Serbia's improved credit rating and its status as an investment-grade country, lowering the costs of future borrowings.