The National Bank of Serbia (NBS) announced that with today’s issue of green bonds, Serbia has become one of the few European countries and the only European country outside the European Union (EU) that has issued a green instrument.
According to the NBS, Serbia realized two issues of Eurobonds in euros (dual.tranche) on the international financial market today.
“For the first time in its history, Serbia issued a ‘green’ Eurobond in the amount of 1.0 billion euros, with a maturity of seven years (7G), which shows that it is an environmentally responsible country. This Eurobond was issued at the lowest coupon rate ever of 1, 00 percent and a yield rate of 1.26 percent, with investor demand exceeding 3 billion euros during the auction, “the NBS said.
At the same time, as she stated, “a fifteen.year (15G) conventional Eurobond in euros in the amount of 750 million euros was issued, at a coupon rate of 2.05 percent and a yield rate of 2.3 percent, which is the longest Eurobond that the Republic has Serbia has so far issued (for which investor demand has exceeded the level of 2.5 billion euros) “.
Regarding “green bonds”, the NBS pointed out that the funds raised in this way will be used exclusively to finance or refinance new and existing expenditures aimed at achieving even more sustainable growth of our economy, and through investments in renewable energy, energy efficiency, transport, sustainable management. water and pollution prevention and control.
“Another successful entry of our country into the international market and the exceptional interest of international investors in Serbian securities, which exceeded 6 billion euros during the auction, is another confirmation of their confidence in the long.term sustainability of good economic performance and preserving macroeconomic stability in Serbia,” she said. Jorgovanka Tabaković.
As she added, “I am especially pleased with the fact that there was a strong investor demand for the first green instrument issued by our country, which resulted in the lowest funding rate that Serbia has achieved so far (1.00 percent) and indicates investor confidence in the strategy. sustainable development of Serbia “.
Minister of Finance: Issuing a green bond is an important signal for investors
Minister of Finance Siniša Mali stated today that Serbia has offered its green bond on the international capital market in the amount of one billion euros, and added that these are funds that will be used for projects from the green agenda.
“It is also an important signal for investors to strive to strengthen our capacities and invest in environmental protection,” Mali said in a statement forwarded by the Ministry.
He explained that the funds from the issued bonds will be used to finance and refinance the costs related to the construction of drinking water treatment plants and wastewater treatment plants, for the construction of subways and modern railways.
He added that it will include flood protection, biodiversity conservation, pollution control and prevention, waste collection, processing and recycling, energy efficiency and renewable energy sources.
The green tranche was issued in accordance with the Government’s strategic plan to invest additional funds to finance projects in the areas of environmental protection and climate change mitigation.
Most of the funds raised by the issue of the second tranche of the Eurobond will be used for, as stated in the announcement, “repayment of debts inherited from the past”.
The statement adds that with today’s show, Serbia is one of the few European countries that have issued green Eurobonds on the international financial market, and which are intended exclusively for financing environmentally friendly projects.