Tuesday, 8 February 2022

Finance Ministry Issues HRK 1.76 bn in Treasury Bills

ZAGREB, 8 Feb 2022 - The Croatian Ministry of Finance sold HRK 1.76 billion worth of treasury bills at an auction on Tuesday.

The bills mature in one year and the interest rate is 0.01 per cent, the same as at the previous auction in January.

In advance of the maturity of treasury bills worth HRK 1.86 billion, the Ministry offered HRK 1.6 billion worth of treasury bills for subscription. Financial institutions submitted bids totalling HRK 1.76 billion and the Ministry accepted them all.

The low interest rate of 0.01 per cent is the result of a large surplus of liquidity in the domestic financial system, exceeding HRK 70 billion.

The balance of subscribed kuna treasury bills has now decreased by HRK 94 million to HRK 13.6 billion.

The next auction is set for 15 February.

(€1 = HRK 7.526770)

Tuesday, 1 February 2022

Croatia Issues €1 bn Bond on Domestic Market

ZAGREB, 1 Feb 2022 - Croatia has successfully issued a €1 billion bond on the domestic market with which it will reschedule two securities from 2017 and 2019, Finance Minister Zdravko Marić told Hina on Tuesday.

The new bond is due in 2030 with a yield of 1.39% and coupon interest of 1.25%.

The issue was arranged by Erste & Steiermärkische Bank, OTP banka, Privredna banka Zagreb, Raiffeisenbank Austria, and Zagrebačka banka.

The new bond will reschedule a bond due on 5 February in the amount of €500 million, issued in 2019 with 0.5% coupon interest, and a bond due due on 7 February in the amount of HRK 3 billion, issued in 2017 with 2.25% coupon interest.

Marić said interest in the new bond surpassed the target issue amount by 40%, totalling €1.4 billion. Among the investors were pension funds, banks, insurance and investment companies.

"The new issues testifies to Croatia's good position on the capital market, which is in line with previous issues, and the success of the new issue also reflects Croatia's upward trajectory among the rating agencies. In two of the three most important agencies we are at the investment grade level, where we belong," Marić said.

The next steps towards introducing the euro will additionally improve Croatia's status, notably regarding the additional decrease of the risk premium, which is especially important in the context of the current pressures on the growth of reference interest rates, geopolitical developments and energy prices, Marić said.

The new issue reflects Croatia's good reputation on the domestic capital market as well as the strength and liquidity of the domestic financial industry, he added.

A €1.25 billion bond issued in 2014 is due in May and a €1 billion bond issued in 2011 in July.

(€1 = HRK 7.529067)