Successful Issuing of Montenegrin Eurobonds

Montenegro has more than successfully debuted on the global capital market by issuing the Eurobonds in the amount of EUR 200 million. This transaction was preceded by the presentation, a road show with visits to London, Zürich, Munich, Frankfurt and Vienna, where representatives of the Ministry of Finance and the Central Bank met many investors and presented the economic and fiscal indicators in Montenegro. Luksic said that Montenegro is and debutant in the market of Eurobonds after the Greek crisis and successfully issued and placed the bonds. Out from the countries that have not entered into the bonds market, Montenegro is debutant on the market after the Greek crisis, and has successfully issued and invested bonds. Entrance of Montenegro into the Eurobonds market is almost historical achievement, bearing in mind that Montenegro has entered for the first time into the market, as well as developments in this market, caused by the Greek crisis. Montenegro has impressed investors, which is supported by the fact that there the demand was above EUR 600 million, which is unique for the country first time entering into the bonds market, to generate the demand which is by three times higher than the supply. The bid was submitted by over 140 investors from 25 different countries, from Europe, Asia and the United States, and bonds were purchased by 125 investors. At the same time, we should bear in mind the fact that the issuing of the Eurobonds was made after summer months, and the high investors interest is showing that investors have confidence in our economic and fiscal policies, reaffirming that our economic policy is on a good course. Bonds were issued with maturity date of less than five years, interest has been set at 7875%, and the leading arrangers of the bonds issuing were the Credit Suisse and the Deutsche Bank, while the Erste Bank was the manager in the transaction, a legal advisor was the law firm Linklaters from London in the process of project development. Investors bought our security with the following share: 45% funds, 38% banks, 10% private banks, 3% hedge funds, 2% insurance companies, and others 2%, and in terms of geographical distribution: 30% United Kingdom, Germany/Austria 24% Switzerland 22%, U.S. 6%, 6% Scandinavian countries, Eastern Europe 3%, others 9%. We believe that Montenegro with this successful transaction has diversified its investors base, and with being the debutante in the world by issuing bonds in euros after the recent turbulent months in the world markets, which is again the confirmation of the credibility of the state, as well as the justification of our estimate to enter into the market.