Montenegro launches new Eurobond issue

“Montenegro has successfully launched its second Eurobond issue worth EUR 180 million. The demand doubled over the first issue, which is uncommon and shows that the investors find Montenegro trustworthy,” Finance Minister Milorad Katnic said at a press conference organised on the occasion of Montenegro's second Eurobond issue on Friday.

Minister Katnic said he is very pleased with the new investors, explaining that there are 67 of them from 21 countries, most of which are from Germany and Austria (40%), the UK (20%) and Switzerland (16%).

He underlined that such great interest shown in Montenegro’s bonds confirms the investors' trust in Montenegro's economic and fiscal policy and added that the Montenegrin economy is set on a good course, as was confirmed recently by the IMF and Moody's.

Bonds are issued for a 5-year period and the interest is fixed at 7.25%, which is more favourable than in the last year's maiden Eurobond issue – 7.85. Leading bond arrangers were JP Morgan and HSBC, and the legal counsel in the project-preparation was provided by Linklaters London.